Business Daily – “Can Starbucks Regain its Buzz?”
Host: Michelle Fleury (BBC North America Business Correspondent)
Guest: Brian Niccol (CEO, Starbucks)
Date: February 2, 2026
Podcast: BBC World Service – Business Daily
Episode Overview
In this episode, Michelle Fleury interviews Brian Niccol, CEO of Starbucks, in New York City to discuss the company’s ongoing turnaround strategy, “Back to Starbucks.” The conversation covers how Starbucks is attempting to reignite customer passion, operational and technological innovation, store atmosphere, competition, pressures from labor and inflation, and the company’s cultural ambitions for its employees and customers alike.
Key Discussion Points & Insights
1. Starbucks’ Recent Struggles and Turnaround Strategy
- Declining sales and drifting customers prompted a strategic overhaul when Brian Niccol became CEO in 2024.
- The new strategy, dubbed “Back to Starbucks,” is about returning to customer-centric values:
- “Back to putting the customer at the center of everything we do.” – Brian Niccol [03:32]
- The company had lost focus due to a “distraction on efficiency and technology” and needed to restore “experience, customer, and connection.”
Notable Quote
“I really think that's how the company started. But I think we lost our focus because we got a little too distracted on efficiency and technology and lost, I think our focus on experience, customer and connection.”
— Brian Niccol [03:36]
2. What Success Looks Like for Starbucks
- Niccol sets a target of 3% or better comparable sales growth to mark ongoing success.
- He emphasizes empowering staff (“partners”) to deliver consistent, high-quality experiences.
- “Our partners are getting the reps, they have the team, they have the tools to consistently deliver the experience and the top line results.” — Brian Niccol [04:32]
3. Changes to Store Atmosphere and Customer Experience
- Reintroduction of ceramic mugs and personalized touches (like handwriting on cups).
- Physical makeovers for stores to create warmer, “community coffee house” environments.
- “We want you to stay. We want you to make this your community coffee house. People want these places to gather. The humanity of it is important.” — Brian Niccol [05:10 & 01:36]
- Positive signs: Loyal customers returning, increased frequency of visits, and innovation in menu (e.g., cold foam, protein options).
4. Balancing Speed, Connection, and Technology
- Order speed target: four minutes per order, yet also emphasizing staff connection with customers—these goals are not seen as mutually exclusive.
- Using technology to optimize both:
- AI for order processing, smart queue technology, and predictive scheduling.
- Introduction of “Green Dot,” a real-time assistant for baristas, and LiDAR inventory tracking.
- AI-driven drive-thru assists with order input, allowing baristas to focus on personal connections.
- Scheduled ordering (not just on-demand), helping to smooth operations and better staff deployment.
- Example of future AI-powered experience:
“You’re gonna be able to hold up your phone and say… ‘Find me the nearest Starbucks. I want my… vanilla protein latte ready at 8:45. Give me the directions.’ And it’ll just load the order in… and when you show up, your coffee's ready to go.”
— Brian Niccol [08:18]
5. Competition from Foreign Brands
- Niccol identifies differentiators like atmosphere, “humanity,” and the “third place” concept of Starbucks as a community hub, which he believes competitors like Luckin can’t match.
- “The competitors… they don't offer the experience, the humanity, the craft, or the connection that I think we have...” — Brian Niccol [12:00]
6. Cost Pressures, Tariffs, and Pricing
- Past tariffs have posed challenges, but green coffee tariffs are phasing out, offering relief.
- Commodity prices for coffee are moderately declining after a period of highs.
- Starbucks has held prices steady for the past year and will pursue only “minimal” increases if future input costs necessitate it.
- “Pricing, we've not moved pricing over the last year and it really is the last lever I want to pull.” — Brian Niccol [14:37]
7. Labor Relations, Unionization, and Internal Culture
- Hundreds of Starbucks stores have unionized, but no national labor contract yet—Niccol says he wants a sustainable deal.
- Starbucks boasts low turnover (<50%) compared to industry norms (>100%). Reasons cited include:
- Access to benefits at 20 hrs/week (healthcare, education, mental health, parental leave)
- Wage, career growth, and internal promotion opportunities
- Significant investment ($500-600 million) in supporting partner experience and simplifying metric tracking for stores—streamlining from 100-200 metrics to just five:
- Staffing, customer experience, throughput, and being in stock [17:15]
Notable Quote
“We're giving power back to the store where they can be accountable for the customer experience that they provide… The business is not an average business. The business is a coffee shop by coffee shop business with a coffee house leader.”
— Brian Niccol [17:16]
8. Looking Ahead: The Next Two Years
- Goals:
- All stores “uplifted” (renovated, welcoming spaces)
- Strong “customer experience culture”
- 90% internal promotions among staff
- Global expansion of 2,000+ units
- Continued strong financial results (comp and earnings)
- Starbucks reclaiming its place as a “third place” in communities and a source of pride for employees and customers.
- “You can grow your career here and then you can be really proud to be a customer of Starbucks.” — Brian Niccol [18:33]
Notable Quotes & Memorable Moments
- “People want these places to gather. The humanity of it is important.” — Brian Niccol [05:10]
- “Technology is both a behind the scenes tool and then it’s also a way for us to make the experience… have less friction.” — Brian Niccol [07:43]
- “Our goal is to not let any order take longer than 12 minutes and be on time when we give you the promised time.” — Brian Niccol [11:30]
Timestamps for Key Segments
- 01:16: Introduction to Starbucks’ challenges & turnaround
- 03:32: Niccol on regaining focus on customer experience
- 04:32: Defining metrics for success (3%+ comp sales)
- 05:10: Upgrades to store experience and customer connection
- 05:56: Operational impact on customer behavior and loyalty
- 06:26: Balancing speed and experience
- 07:43: Role of technology and AI in operations
- 09:17: Empowering baristas with tech tools (“Green Dot”)
- 10:27: Managing online and mobile ordering spikes
- 12:00: Competition with foreign brands and preserving differentiation
- 14:02: Tariffs and commodity pricing relief
- 14:37: On holding steady or minimally raising customer prices
- 15:20: Labor relations, unionization, and employee culture
- 17:16: Simplifying store metrics and empowering local leadership
- 18:33: Long-term vision for Starbucks’ leadership and culture
Tone and Language
- The conversation is optimistic, candid, and human-focused, with Niccol frequently returning to themes of community, connection, and pride in both customer and partner (employee) experience.
- Niccol acknowledges challenges but stresses a commitment to sustainable, incremental improvement and employee empowerment.
Summary Takeaway
Starbucks’ turnaround under Brian Niccol is grounded in a renewed focus on customer experience and community, substantial operational and technological investment, and an empowered workforce. The company is cautiously optimistic, leveraging its brand identity and people-centric values to compete and grow, while navigating pressures from global competition, cost fluctuations, and labor negotiations. The vision is clear: Restore Starbucks as a welcoming “third place” and a rewarding employer, one coffeehouse at a time.