Starbucks Rebrands On Nostalgia

After reporting losses for the third consecutive quarter, Starbucks has announced new initiatives to boost revenues. The most notable is the removal of fees for milk substitutions in North America, effective November 7th. This change applies to oat, almond, soy, and coconut milk substitutions. According to Starbucks, discount is expected to reduce the cost of the average order by ten percent, as milk substitutions are the second most requested drink modification, behind extra espresso.

Starbucks, is currently in a transition phase as Brian Niccol, took over as CEO in September. Niccol, reassured customers that he is carefully considering feedback and is working hard to win back their business. Niccol's, rebranding strategy focuses on recultivating nostalgia among the company's core fan base, calling the campaign “Back to Starbucks.” Starbucks will be reintroducing handwritten names on orders; in an attempt to increase interactions between customers and baristas. Another nostalgic feature making a comeback is the self-serve customization station offering toppings such as powdered cinnamon and chocolate. The stations were removed during the COVID-19 pandemic, sparking debate amongst core consumers over the stations sanitation.

In a statement posted to the companies website Niccol acknowledged customer complaints regarding the current system calling it “overly complex”. The system which currently features a  rotating list of menu items is expected to be simplified. In response, Starbucks is reportedly discontinuing its Oleato drink line, which featured olive oil and coffee; facing widespread criticism after its launch earlier this year. The brand plans to return to fewer releases, focusing on elevated and simple coffee profiles.

These changes are also viewed as a win for Starbucks employees, many of whom have voiced their concerns about the changing menu online. Niccol, hopes these adjustments will streamline the ordering process making it easier for baristas to perform more efficiently.

Despite the positive changes, Niccol, plans to make significant alterations to the mobile ordering system, which accounts for 30 percent of the company's profits. Unfortunately, this will involve scaling back the rewards system  currently hosted through the Starbucks app; resulting in fewer discounts and free offers for members. Netizens are not reacting well to this decision with many expressing their disappointment. Regardless, Niccol, is counting on the ongoing changes to restore the cozy and artisanal coffee house to the growing corporation it once was.