Two years into Starbucks’ turnaround effort, CEO Brian Niccol is putting cafe renovations and customer service at the center of the plan, telling CNBC that the coffee chain has regained its footing.
“Starbucks is back,” Niccol said Thursday on CNBC’s “Squawk Box.”
Under Niccol, the company has leaned on a strategy it calls “Back to Starbucks,” aimed at winning back coffee drinkers by returning to the chain’s roots. The approach has emphasized improving the experience for both customers and baristas while reminding lapsed loyalists why they once frequented the brand — a push that has unfolded as rivals court the same customers with lower prices and added convenience.
Renovations Roll Out Across the Fleet
The current phase of the effort centers on the coffeehouses themselves. Niccol said more than 1,000 renovations have been completed over the past nine months, with thousands more planned for the next fiscal year.
Most of the work involves relatively superficial touches — additional seating and softer lighting among them — intended to make the cafes feel more welcoming. According to Niccol, the changes bring back “the Starbucks vibe.”
Customer service is the other pillar. More than a year ago, Starbucks began training baristas through a program called “Green Apron Service,” designed to foster more positive interactions with customers. The company is setting its sights high: in a memo to employees Thursday, Niccol wrote that Starbucks aims to “be the world’s greatest customer service company.”
Sales Rebound Signals Progress
There are signs the strategy is gaining traction. In Starbucks’ fiscal third quarter, same-store sales rose 7.9%, helped by strong performance in the U.S., the company’s largest market.
“As a result of this work, our business has made the turn,” Niccol wrote in the memo. “We have returned to growth, delivered positive global comps and improved margins. We have positioned Starbucks to perform for the long term.”
The market has taken notice, though not at quite the pace of the broader index. Since Niccol was announced as Starbucks’ next CEO in 2024, the company’s shares have risen about 30%, while the S&P 500 has climbed 42% over the same span, according to CNBC.
Niccol’s appearance on CNBC followed the release of his memo to employees, which framed the renovation and service initiatives as part of a longer rebuilding process rather than a single fix. The combination of physical upgrades, barista training and a sharper focus on the in-store experience amounts to a bet that customers will pay for atmosphere and service even as competitors compete primarily on price and speed.
Whether that bet pays off over the long term will depend on how quickly the remaining renovations move and whether the sales momentum in the U.S. carries into other markets. For now, the company is pointing to its most recent quarterly results and the pace of its makeovers as evidence that the reset is working.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/10/starbucks-ceo-brian-niccol-cafe-renovations-customer-service.html
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