Starbucks cups may sport handwritten names again; non-dairy milk surcharges will be dropped
Following a decline in summer sales, Starbucks is hoping a return to its roots will be the comeback it needs.For the first time in more than four years, Sharpies are making their way back into Starbucks locations."We're tracking down the Sharpies and we're going to get back to writing little notes on the cups," Starbucks CEO Brian Niccol told CNBC on Thursday. "It may not be everybody's name ... but we will definitely be getting back to writing on cups again here in the not-so-distant future."For years, Starbucks baristas wrote customer orders and names on individual cups. But in 2020, during the height of the COVID-19 pandemic, the company made the decision to put the practice on hold. Today, customer orders − made in-person or via mobile ordering — are indicated by a printed sticker placed on the side of the cup.Non-dairy milk surcharge to be droppedIn addition to the return of Sharpies, Starbucks announced on Wednesday that it will be dropping the surcharge for non-dairy milk substitutes, including almond milk, coconut milk, oat milk and soy milk. This will be implemented on Nov. 7, when the Starbucks holiday menu launches.The current cost to customize a drink with a non-dairy substitute is between 70 and 80 cents, depending on the market.Sales down 25% worldwideIn its fourth quarter and full fiscal year financials, which were shared on Wednesday, Starbucks reported a fourth quarter net income of $909.3 million. Compared to the same quarter last year, this is down 25% from $1.22 billion.In U.S. and North America locations alone, Starbucks sales declined by 6% during the July-September period.The number of individual transactions fell even more. In North America, customer transactions were down 10% in the fourth quarter. However, this number was partially offset by a 4% increase in the average customer ticket.Formerly the CEO of Chipotle, Niccol was named the CEO of Starbucks in August, replacing Laxman Narasimhan.Last week, Niccol discussed his "Back to Starbucks" strategy, with the goal to simplify the Starbucks' menu, fix pricing architecture and "ensure that every customer feels Starbucks is worth it every single time they visit."
Following a decline in summer sales, Starbucks is hoping a return to its roots will be the comeback it needs.
For the first time in more than four years, Sharpies are making their way back into Starbucks locations.
"We're tracking down the Sharpies and we're going to get back to writing little notes on the cups," Starbucks CEO Brian Niccol told CNBC on Thursday. "It may not be everybody's name ... but we will definitely be getting back to writing on cups again here in the not-so-distant future."
For years, Starbucks baristas wrote customer orders and names on individual cups. But in 2020, during the height of the COVID-19 pandemic, the company made the decision to put the practice on hold. Today, customer orders − made in-person or via mobile ordering — are indicated by a printed sticker placed on the side of the cup.
Non-dairy milk surcharge to be dropped
In addition to the return of Sharpies, Starbucks announced on Wednesday that it will be dropping the surcharge for non-dairy milk substitutes, including almond milk, coconut milk, oat milk and soy milk. This will be implemented on Nov. 7, when the Starbucks holiday menu launches.
The current cost to customize a drink with a non-dairy substitute is between 70 and 80 cents, depending on the market.
Sales down 25% worldwide
In its fourth quarter and full fiscal year financials, which were shared on Wednesday, Starbucks reported a fourth quarter net income of $909.3 million. Compared to the same quarter last year, this is down 25% from $1.22 billion.
In U.S. and North America locations alone, Starbucks sales declined by 6% during the July-September period.
The number of individual transactions fell even more. In North America, customer transactions were down 10% in the fourth quarter. However, this number was partially offset by a 4% increase in the average customer ticket.
Formerly the CEO of Chipotle, Niccol was named the CEO of Starbucks in August, replacing Laxman Narasimhan.
Last week, Niccol discussed his "Back to Starbucks" strategy, with the goal to simplify the Starbucks' menu, fix pricing architecture and "ensure that every customer feels Starbucks is worth it every single time they visit."
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