Back in 2023, the writing was on the wall for Starbucks… While smaller rivals like Dutch Bros were sprinting across the country opening new stores like it was a land grab, the Seattle based coffee company felt like it was stuck in neutral. Sales were soft, the brand had lost its edge, and even loyal customers were starting to ask whether $10 espressos were really worth it anymore.

On Wall Street, the mood wasn’t much better. Analysts were dialing down expectations, and even the diehard dividend crowd (the “set it and forget it” investors) were quietly heading for the exits. That’s when the board freaked out and wrote a nine-figure check to Brian Niccol, the guy who turned Taco Bell into a pop-culture phenomenon and rebuilt Chipotle after a public health disaster nearly tanked the brand.

At the time, it looked like a desperation move. Like bringing in Gordon Ramsey to humiliate your restaurant on live tv because things are so bad. But the pitch was simple: Brian fixed E. coli burritos and Doritos tacos through their dog food accusation scandal… surely he could fix overpriced iced coffee… right? Well, I doubt they expected they'd have six straight quarterly drops in US sales. But that's the reality we're looking at. (Not exactly the turnaround arc they scripted).

For starters, U.S. same-store sales dropped 2%, same as last quarter. That’s not catastrophic (and technically better than the -2.5% analysts expected) but it’s been 2 years since they brought in the “turnaround expert,” so can you blame everyone for expecting more?

One of the biggest “oh, sh*t, here we go again” moments came from the 4% drop in transactions… a clear signal that fewer people are walking into Starbucks at all. The average ticket was up slightly (+1%), which basically means fewer people are spending more. So no matter how you spin it, that’s not great.

Globally, the picture wasn’t much better. Same-store sales fell 2% worldwide, worse than the 1.5% drop expected. Even China (the market that was supposed to be the growth engine) is barely hanging on. Same-store sales in China ticked up 2%, but only after Starbucks slashed prices to compete with Luckin Coffee, the local chain that’s essentially the Shein of espresso: cheaper, faster, and somehow everywhere at once.

To Niccol’s credit, he’s not phoning it in. The guy’s been elbows-deep in operations trying to rewire Starbucks from the inside out. He says they’ve “fixed a lot” and are “ahead of schedule,” which is CEO-speak for “please ignore the red ink.” But he’s not wrong about one thing… the company has started making real changes.

(Source: Fast Company)

One big shift? Innovation is no longer dictated by the corporate office. Starbucks used to launch drinks from a lab, dump them into stores, and expect baristas to figure it out. That approach is dead. Now, new items, like the upcoming protein cold foam (15g of protein, zero sugar, and clearly targeting the gym-before-work crowd) are being co-developed with baristas to make sure they’re actually executable during a busy rush. They’re also experimenting with coconut water teas and elevated food options… offerings that sound artisanal, though let’s be honest, they’re probably still defrosted in the back next to the breakfast sandwiches.

But maybe the most noticeable change is happening inside the stores themselves. Starbucks is rolling out its Green Apron Service model to 1,500 locations… a structured hospitality revamp designed to reduce chaos and create a more consistent customer experience. According to Niccol, the early data looks promising. Service times are improving. Customer satisfaction scores are ticking up. And employees, supposedly, aren’t quitting mid-shift as often. CFO Cathy Smith called it a “foundational operating model,” which is basically a nicer way of saying, “we finally gave our team a playbook.”

Oh… and they’re bringing back chairs. Literally. After yanking seats out during the mobile-ordering frenzy, Starbucks has realized that people actually want to, you know, sit down. Groundbreaking stuff. But it does make you wonder… did it really take a $100 million paycheck for Brian Niccol to figure out people like chairs?

And it doesn’t stop there. Starbucks is also investing $500 million in additional labor hours over the next year… part of the effort to restore that warm, fuzzy “third place” atmosphere they used to be famous for. And they’re rolling out a new café prototype in 2026 that’ll be cheaper to build (down 30% in costs) and (wait for it) will come with 32 whole seats and a drive-thru.

Now the stock did jump 5% after earnings, mostly because the results weren’t as bad as feared. Revenue hit $9.5B (vs. $9.3B expected), even though EPS missed ($0.50 vs. $0.65 expected). And China is back in the green… barely. (Although that only happened after price cuts. So as always, context is king). But at the end of the day, six straight quarters of U.S. sales declines is hard to spin. Especially when you paid nine figures for the guy who was supposed to reverse the trend.

Niccol says the momentum is building. He’s getting buy-in from employees. And he’s confident that 2026 (when Starbucks holds its next investor day) will mark the real comeback. Let’s hope he’s right. Otherwise, that $100M contract might start looking less like a turnaround bet… and more like they just bought the world’s most expensive cup of burnt coffee.

At the time of publishing this article, Stocks.News holds positions in Starbucks as mentioned in the article.