Brian Niccol took over as CEO of Starbucks two years ago this week, starting his tenure with this promise: “Today I’m making a commitment. We’re getting back to Starbucks.”
Niccol’s effort has been active, featuring restructurings, closures, remodels, changes in technology and ordering, a new corporate office, and a lot more marketing. And there are signs of real progress.
Same-store sales in the U.S. have risen for three straight quarters, largely returning to the high-single-digit results that had been the norm. Consumer scores have improved from their 2025 lows, according to data from Technomic and the survey firm YouGov. The company’s stock is up 9.7% over that period. The improved top-line results have started yielding profit growth.
“We had real work to do,” Niccol wrote in a system message published on the company’s website on Thursday. “Our coffeehouses needed to feel warmer. Our service needed to be more consistent. Our business needed to be simpler and move faster. Our green apron partners needed more support. And we needed to give customers more reasons to choose Starbucks.
“Since then, we’ve worked the plan. We’ve executed with focus. And it’s working. Starbucks is back.”
Here’s everything Starbucks has done over that period.
Luring Niccol away from Chipotle
We should probably start with this. Starbucks made the decision in 2024 to end the Laxman Narasimhan era less than two years after it had started, hiring the first restaurant industry veteran in the company’s history.
It wasn’t cheap. Starbucks needed to give Niccol a hefty pay package to leave a phenomenal job, which also included a small office near Niccol’s California home. It also gave Niccol the chairman title. But after two years of uncertainty followed by worsening sales, Starbucks decided not to mess around.
Overhaul the executive team
As is common, new CEOs bring in a lot of their own people, especially if those CEOs come from outside the company. The company’s relatively new North America CEO left shortly after Niccol’s arrival.
Starbucks then replaced its China CEO, hired a chief brand officer, brought in a new chief operating officer, a chief store development officer, CFO, and other new management.
Small store changes
Starbucks quickly made simple changes to improve the way its coffee shops operate. Baristas started writing on cups again. It brought back self-serve creamers. It gave in-store customers free refills and brought back ceramic cups.
The company also created a code of conduct for its stores and ended an open-door bathroom policy. And it changed its dress code, which was somewhat controversial among its baristas.
Big store changes
The two biggest store initiatives may have the biggest long-term impact. First, the company implemented a “Green Apron Service Model” under Chief Operating Officer Mike Grams that added hourly workers to its shops, and gave managers the ability to place those workers when they’re needed most. The new model helped speed service and likely did as much to generate sales growth as anything else.
The company is remodeling stores to make them more inviting for in-store customers and add seats. Starbucks has done more of these remodels than expected, saying the remodels are attracting more customers.
Marketing changes
Starbucks has made some big changes in the way it markets its shops under Chief Brand Officer Tressie Lieberman. The company bought a Super Bowl pregame ad in 2025 and followed it up with a coffee giveaway.
It is letting its baristas become influencers to improve its voice on social media. It has also better leveraged new menu introductions and special events. A “Bearista” cup sale last year generated strong sales. It just introduced a Snoopy cup to coincide with its fall menu. A weekend-long return of the Unicorn Frappuccino generated record results.
Barista changes
Starbucks continues to deal with its unionized stores. But it has also made a number of changes to management, pay, and incentive levels among its store workers. Starbucks is now adding “coffeehouse coach” roles to its shops.Workers can earn up to $1,200 in annual bonuses based on store performance. And it increased parental leave for baristas.
Corporate restructurings and office moves
The fund the company’s remodels and store employee investments, and to speed decision-making, Starbucks has undergone multiple corporate restructurings. In short, the company is taking funds from its corporate offices and is devoting those funds to its stores.
These restructurings led to a number of layoffs as the company looked to create “smaller, more nimble teams.”
Some of the restructuring involves a new office in Nashville that will provide a beachhead to expand in the South and East while also housing more technology workers. But that also involves layoffs.
The restructurings also involved its massive, licensed business, which Starbucks views as an opportunity to improve service and build sales — and, hopefully, eliminate some long lines at places like airports.
Starbucks has added seats to its former Pickup stores.
Closing stores
Starbucks also opted to close hundreds of stores last year, the most it had closed since the Great Recession. The company closed underperforming locations, and those that couldn’t be remodeled under its new image.
In particular, Starbucks got rid of the takeout-only Pickup locations that were devoted to just takeout and delivery, a model it had opened coming out of the pandemic. The company closed those locations if they couldn’t accommodate any seats.
Technology changes
One of the big problems at Starbucks was the occasional flood of mobile orders. The company has responded by improving the technology behind its mobile app, to sequence orders and ensure there is a proper queue.
It also changed its loyalty program, taking a page out of the airline industry, and now allows customers to schedule when they want to pick up their coffee drinks. Oh, and the company is testing ordering via ChatGPT.
The future
Niccol in his message said that what started as a turnaround strategy is now a strategy for the company to maintain its focus.
“Back to Starbucks started as a turnaround plan,” he said. “It helped us refocus the company, fix what needed fixing and rebuild the operating foundation of the business. Today, it is our roadmap to deliver the very best of Starbucks for every customer, partner, and shareholder.”
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