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Starbucks is set to cut down its menu by around 30%. CEO Brian Niccol has confirmed that the company is looking to bring the number of items down by the end of the year.
At the company's first quarter fiscal year 2025 earnings call on January 28, Niccol said (h/t Today):
“In the coming months, you’ll see us begin to optimize our menu offerings, resulting in roughly 30% reduction in both beverages and food."
Niccol didn't specify the items that will be scrapped but hinted that it is not limited to just one category. He said:
“It’s a little bit of everything is how I would describe it. Really what we focused on is what are the items that are not, frankly, selling a lot every day?”
Notably, this is Starbucks' first full quarter under Brian Niccol and there have been some minor signs of recovery.
Starbucks preparing for layoffs along with trimming the menu
Following the earnings call, Brian Niccol spoke to Yahoo Finance executive editor Brian Sozzi about Starbucks' plans for the calendar year 2025. He said that along with the 30% reduction in the menu, they are also looking to trim down their workforce. Niccol said:
"We're working through that. And... you never love the idea of having to restructure because it impacts... people. And that's at the heart of our business.
"But in the end, what we know we have to do is we have to have a support center that is structured such that we can have accountability, clarity of work so that we can support our stores and our partners in the green apron in the stores effectively and efficiently."
The company is also looking to build towards more efficiency and improve upon safety for its customers through its app or at outlets.
Starbucks discontinuing Oleato beverages
In November 2024, Starbucks discontinued its range of Oleato beverages and removed it from all U.S. stores. These drinks were introduced in 2023 and had an infusion of Partanna cold pressed extra virgin olive oil in some regular coffee drinks. However, it got mixed reviews from the customers.
Hence, Starbucks decided to axe the range as they looked to simplify their menu. This decision was notably made before the appointment of Brian Niccol but it reportedly aligns with his ideas.
Brian Niccol has overseen multiple changes at Starbucks
Since his appointment, Brian Niccol's tenure has seen a few changes at the company. While their attempt at trimming down the menu is a gradual process, there have been some immediate alterations.
Starbucks has announced that it will offer free refills to customers on hot brewed or iced coffee or hot or iced tea served in a ceramic mug, glass, or personal cup. Condiment bars, which were scrapped during the pandemic, are also being reintroduced. These allow the customers to add their own milk, sweeteners, and other items to their beverages.
They now won't charge extra for non-dairy milk. They've also introduced an open-door policy where anyone can use their restrooms without having to buy anything. The company is also aiming to reduce the number of discounts and promotions.
