Starbucks CEO Brian Nicol says the company’s app needs to be more transparent about pricing.
Starbucks CEO Brian Nichol He believes the company’s app is not transparent enough regarding pricing. He wants to fix that.
“I don’t think it’s clear now for people to understand when they adjust their drink, and how that adjustment translates into the price of their drink,” Nicol told FOX Business Digital in an exclusive interview.
Nicol explained that one of the things the company is working on is showing customers in real time how the price of their drink order increases when they add extras, such as an extra pump of flavor. However, he noted that it will take “a little time.” Renew the wiring.“
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The goal is to ensure customers aren’t surprised when it’s time to pay.
Mobile order pickup area for Uber Eats and Doordash at a Starbucks, Queens, New York. (Lindsay Nicholson/UCG/Universal Image Group via Getty Images) / Getty Images)
“I think what happens to people is they get a little surprised when they make three or four allocations, and it’s not clear to them how those allocations are priced,” said Nicol, who said. He took over the position of CEO in August to reverse declining traffic for the coffee giant and create a better environment for workers
When evaluating the application, the company also has the opportunity to “fix the logic around the cost of these customizations,” he added.
Specifically, the company aims to evaluate which modifications and customizations should incur additional fees and which should be included, while ensuring transparency in how this is communicated.
A Starbucks barista prepares mixed coffee drinks at a Starbucks coffee shop in New York, Wednesday, January 13, 2010. (Ramin Tali/Corbis via Getty Images)/Getty Images)
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Nicol highlighted that the company had already decided not to do so Milk substitute chargeHe announced this decision within two months of assuming his new position, stressing his goal of making quick decisions.
Nicol did not specify what other items the company would no longer charge fees for. However, he stated that the company is “working through” an appropriate pricing structure for other options such as flavor Toppings, espresso shots or cold foam.
A shot of some instant drinks from the Chilled Cup series. (Lindsay Nicholson/UCG/Universal Image Group via Getty Images) / Getty Images)
Nicol noted that at Chipotle, where he served as CEO since 2018 before moving to Starbucks, consumers can customize their orders, though if they want anything extra, they’ll be charged for it. Specifically, he explained how Chipotle clarified what are considered additions versus things that are considered modifications.
“I think we need to do a better job of being transparent about that for our customers. And I think that will really help with pricing engineering. And people will also understand, ‘Okay, this is really worth it,'” he said.
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Although Nicol has only been in office for four months. He’s using his past experience running Chipotle and Taco Bell to drive more traffic to Starbucks.
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| Sex | Starbucks Corporation | 101.51 | -0.95 |
-0.93% |
Aside from stating that the company will simplify its “very complex menu” and overhaul its pricing structure, Nicol announced that the company intends to return the cafes to their former “café” aesthetic with “personal touches,” including serving coffee in ceramic mugs. For dining customers.
The condiment bar will return next year and the company will reintroduce Sharpies, both of which are nods to its earlier days.
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