Starbucks Faces Declining U.S. Sales, Announces Major Changes
Starbucks is making bold moves to revive its struggling U.S. business. The coffee giant announced plans to cut 1,100 corporate jobs and simplify its menu by nearly one-third in an effort to improve service speed, quality, and consistency.
Why Is Starbucks Cutting Jobs and Menu Items?
Starbucks has been experiencing declining U.S. sales since last year. Customers have complained about long wait times, rising prices, and inconsistent quality, which have impacted the brand’s reputation.
In the most recent quarter, U.S. transactions fell by 8% compared to the same period last year. The company has also faced unionization efforts, boycott calls over political issues, and operational inefficiencies that have slowed service and increased costs.
Which Starbucks Menu Items Are Being Removed?
As part of the menu simplification strategy, Starbucks is eliminating low-demand and complex-to-make drinks. The first round of cuts includes:
- Royal English Breakfast Latte
- White Hot Chocolate
- Several blended Frappuccinos
These menu changes take effect on March 4, and more removals are expected as Starbucks streamlines operations to focus on faster service and higher quality.
"We're simplifying our menu to focus on fewer, more popular items, executed with excellence," Starbucks stated in a press release.
Starbucks Job Cuts: Who Will Be Affected?
The 1,100 job cuts will only impact corporate "support partner" roles, meaning store employees and baristas will not be affected. Starbucks is also eliminating several hundred unfilled corporate positions to improve efficiency.
In an internal announcement, CEO Brian Niccol—who previously led Chipotle—emphasized that these cuts are designed to make Starbucks leaner, more accountable, and better integrated.
A Return to Starbucks' Coffeehouse Roots
Niccol has made it clear that his vision for Starbucks is to return to its core identity as a coffee company—not an overly complicated, highly customized beverage chain.
This menu simplification strategy marks a shift from Starbucks’ previous approach, which prioritized personalization and customization.
Can Starbucks Turn Things Around?
With over 360,000 employees and 40,000+ stores worldwide, Starbucks remains one of the largest coffee brands globally. However, its U.S. market—the most critical one—has struggled in recent years.
By reducing menu complexity, improving speed, and enhancing consistency, Starbucks hopes to win back customers and boost sales in 2024.
Source: bbc.co.uk, ChatGpt
