A photo of a Starbucks cup on a counter in Manhattan, New York, on February 16, 2022.
Carlo Allegri | Reuters
starbucks CEO Brian Nicol said he plans to buy about 200,000 Sharpie markers as part of a plan to return the coffee chain to its roots.
He is betting that more personal touches, such as bringing back markers for customers to write their name or message on the cup, will bring customers back to the cafe. The company has reported declining sales for three consecutive quarters. Starbucks reported a 10% drop in foot traffic to its U.S. stores in its latest quarter, reported Wednesday.
Nicol said some customers think the coffee chain has strayed too far from its core.
While the company is working on a more comprehensive turnaround strategy, Nicol revealed some early steps the company is taking to rebuild the Starbucks brand in its home market. But even something as small as a marker is no easy task for Starbucks, which has about 17,000 stores in the United States.
“The numbers I heard made me think the number of Sharpies we have to track is close to 200,000,” Nichol said in an interview on CNBC’s “Squawk Box.” “Unfortunately, it’s not as easy as just going to Staples and getting a Sharpie.”
Other changes coming to American cafes include the return of ceramic mugs, condiment bars, and cozy furniture.
Nicol, who joined the company in early September, said he wants the chain to become a “third place” again, referring to the concept of a place to work and socialize outside of the home or office.
Starbucks has positioned itself as a place to stay for decades, but the company has lost its luster over the years.
Nicol said the company also aims to improve staffing in stores and reduce service time per order to less than four minutes.
Starbucks stock has increased about 1% since the beginning of the year, lagging the S&P 500’s 22% rise. The company’s market capitalization is $110 billion.
— CNBC Jacqueline Korba contributed reporting to this article.
