The company reported declining sales for a sixth consecutive quarter.
After six consecutive quarters of declining sales, Starbucks CEO Brian Niccol said on July 29 that price increases at the Seattle-based coffee giant would be a last resort.
Niccol, the former Chipotle chief executive who became CEO of Starbucks in September 2024, vowed in January to turn the global coffeehouse chain around under his “Back to Starbucks“ initiative.
The plan aims to bolster sales by enhancing the in-store experience, returning the condiment bar, writing on cups, and re-introducing a simplified menu and a revised code of conduct.
Speaking during an earnings call, Niccol stated that Starbucks has made progress this quarter and is ahead of expectations.
He said Starbucks plans to replace thousands of seats across its chain.
“We slowed new builds and major renovations to prioritize a new coffee house uplift program, with a target investment of approximately $150,000 per store and minimal to no downtime,” Niccol said.
“Uplifts are intended to quickly replace thousands of seats we removed and introduce greater texture, warmth and layered design. Work is accelerating now in New York City. We’ll begin in Southern California later in Q4. And by the end of calendar year 2026, we will have completed at least 1,000 uplifts across North America.”
Starbucks has also begun working on the “coffeehouse of the future,” he said.
“We have a new standalone prototype that will open in fiscal 2026 that has 32 seats, a drive-thru, and a roughly 30 percent lower cost to build,” Niccol said. “A small format version with approximately 10 seats is under construction in New York City and will open in the next few months.”
Despite the declining sales, Niccol also said, “Pricing is always the last lever I like to pull.”
“There are times where it makes sense to take some price, and when those situations present itself, we’re going to do it in the least amount of pricing necessary. I prefer to always hold back on that one as much as possible,” Niccol said.
