{"id":53920,"date":"2025-10-31T14:03:30","date_gmt":"2025-10-31T14:03:30","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/starbucks-ceo-brian-niccol-rules-out-a-value-menu-leaves-door-open-to-price-hikes\/"},"modified":"2025-10-31T14:03:30","modified_gmt":"2025-10-31T14:03:30","slug":"starbucks-ceo-brian-niccol-rules-out-a-value-menu-leaves-door-open-to-price-hikes","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/starbucks-ceo-brian-niccol-rules-out-a-value-menu-leaves-door-open-to-price-hikes\/","title":{"rendered":"Starbucks CEO Brian Niccol rules out a value menu, leaves door open to price hikes"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>Starbucks CEO Brian Niccol <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/starbucks-new-ceo-brian-niccol-chipotle-laxman-narasimhan\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">took the helm<\/a><\/span> in September 2024, inheriting a company facing its first revenue decline in four years amid customer complaints about high prices and long wait times. A year later, the coffee giant has halted the slide but faces fresh pressures, from surging coffee bean costs to store closures.<\/p>\n<p>Coffee prices\u00a0<a href=\"https:\/\/fred.stlouisfed.org\/series\/APU0000717311\" target=\"_blank\" rel=\"nofollow noopener\">jumped 30%<\/a> from January through September, squeezing Starbucks&#8217; profit margins even as Niccol vowed not to raise menu costs this year. The restaurant chain said last month it would <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/starbucks-closing-underperforming-stores-locations-ceo-brian-niccol-layoffs\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">spend $1 billion<\/a><\/span> to close underperforming stores and cut 900 jobs.<\/p>\n<p>As Niccol told CBS News&#8217; Jo Ling Kent, the retail chain can&#8217;t rule out price hikes in 2026 due to rising coffee prices, although he described this step as a &#8220;last resort.&#8221; At the same time, Niccol noted that Starbucks has no plans to introduce a value menu <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/mcdonalds-extra-value-meal-menu-mcmuffin-big-mac\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">like McDonald&#8217;s<\/a><\/span> and other fast-food chains appealing to budget-conscious patrons.<\/p>\n<p>&#8220;We have a huge point of difference and that is, I think, that customer connection and the experience you get in our stores,&#8221; Niccol told CBS News. &#8220;I just believe, at the end of the day, the experience sets us apart from everybody else.&#8221;<\/p>\n<p>He added, &#8220;Pricing would be one of those things that we do as a last resort, and we do it very surgically. To say never, you know, I don&#8217;t think you can do that in this environment.&#8221;<\/p>\n<h2>&#8220;Human-to-human&#8221;<\/h2>\n<p>Starbucks&#8217; reboot involves what the company calls its &#8220;<span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/starbucks-jobs-hiring-baristas\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">Green Apron service model,<\/a><\/span>&#8221; which aims to hire more baristas, improve customer service and cut down on customer wait times.\u00a0<\/p>\n<p>&#8220;What we&#8217;re doing right now is making sure that we&#8217;re staffed correctly,&#8221; Niccol said. &#8220;The teams are trained correctly for the demand that we know we have in the morning, and we know that we&#8217;re growing in the afternoon.&#8221;<\/p>\n<p>While other companies are turning to artificial intelligence to replace some workers, Niccol said he doesn&#8217;t envision AI supplanting baristas. He said the technology could be useful for behind-the-scenes tasks, such as managing the company&#8217;s supply chain.\u00a0<\/p>\n<p>&#8220;I don&#8217;t see [AI] replacing our baristas \u2014 that human-to-human experience is just too important,&#8221; Niccol said. &#8220;And I think it really separates our experience from everybody else.&#8221;<\/p>\n<p>While Starbucks is bolstering its barista ranks, it also faces the <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/starbucks-union-vote-workers-strike-2025\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">threat of strikes<\/a><\/span> from Starbucks Workers United, which represents 12,000 workers in some 650 Starbucks cafes across the country. Overall, the company has roughly 201,000 employees working in 10,000 stores across North America.\u00a0<\/p>\n<p>Niccol said he&#8217;s open to talking with union members, but also described his company&#8217;s pay and benefits as generous, adding that their demands &#8220;to date have been unreasonable.&#8221;<\/p>\n<p>&#8220;We already give them the best job in retail. We have the lowest turnover in the industry. It&#8217;s below 50%,&#8221; Niccol said. &#8220;We also have the best benefits in the industry, and we actually have the best wages in the industry.&#8221;<\/p>\n<p>Although other companies have noted a pullback from low- or middle-income consumers as inflation continues to tick upwards, Niccols said its customers are still opening their wallets.<\/p>\n<p>&#8220;Transactions are up \u2014 our sales are up,&#8221; Niccol said. &#8220;What we hear from them is they love the experience and they think it&#8217;s a great value proposition, so I think they&#8217;re being much more judicious in where they want to spend their money.&#8221;<\/p>\n<p>He added, &#8220;And I think it&#8217;s really important that you give them a great experience so that it justifies why they chose to spend money with you.&#8221;<\/p>\n<section class=\"content__body--footer\">\n<p class=\"content__meta--editors\">\n      Edited by<\/p>\n<p>                                  <a href=\"https:\/\/www.cbsnews.com\/team\/alain-sherter\/\" class=\"byline__author__link\" data-invalid-url-rewritten-http=\"\">Alain  Sherter<\/a>\n                      <\/p>\n<\/section>\n<p>  <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation \">\n        <\/aside>\n<section class=\"content__body--footer\">\n      <!-- tags --><\/p>\n<section class=\"content__tags\">\n<\/section>\n<\/section><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/starbucks-ceo-brian-niccol-turnaround-value-menu-coffee-prices\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Starbucks CEO Brian Niccol took the helm in September 2024, inheriting a company facing its first revenue decline in four<\/p>\n","protected":false},"author":1,"featured_media":53921,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[819],"class_list":["post-53920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-stories","tag-starbucks"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Starbucks CEO Brian Niccol rules out a value menu, leaves door open to price hikes - World News<\/title>\n<meta name=\"description\" content=\"Starbucks CEO Brian Niccol doesn&amp;#039;t expect AI 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