Starbucks CEO Brian Niccol has ruled out introducing a value menu, citing the company's focus on offering a unique customer experience. Despite facing pressure from rising coffee bean costs and store closures, Niccol believes that Starbucks' premium product and service will continue to attract customers.
The coffee giant is instead investing $1 billion in closing underperforming stores and cutting 900 jobs as part of its efforts to improve profitability. However, Niccol has warned that price hikes could be necessary in 2026 due to the rising cost of coffee beans, although he described this step as a last resort.
When asked about the possibility of introducing a value menu like McDonald's, Niccol emphasized that Starbucks' experience is what sets it apart from competitors. "We have a huge point of difference and that is, I think, that customer connection and the experience you get in our stores," he said. "I just believe, at the end of the day, the experience sets us apart from everybody else."
Niccol also acknowledged the threat of strikes from Starbucks Workers United, which represents 9,500 workers across the country. However, he argued that the company's pay and benefits are already generous, citing low turnover rates and industry-leading wages.
Despite these challenges, Niccol remains optimistic about Starbucks' prospects. "Transactions are up, our sales are up," he said. "What we hear from them is they love the experience and they think it's a great value proposition."
The coffee giant is instead investing $1 billion in closing underperforming stores and cutting 900 jobs as part of its efforts to improve profitability. However, Niccol has warned that price hikes could be necessary in 2026 due to the rising cost of coffee beans, although he described this step as a last resort.
When asked about the possibility of introducing a value menu like McDonald's, Niccol emphasized that Starbucks' experience is what sets it apart from competitors. "We have a huge point of difference and that is, I think, that customer connection and the experience you get in our stores," he said. "I just believe, at the end of the day, the experience sets us apart from everybody else."
Niccol also acknowledged the threat of strikes from Starbucks Workers United, which represents 9,500 workers across the country. However, he argued that the company's pay and benefits are already generous, citing low turnover rates and industry-leading wages.
Despite these challenges, Niccol remains optimistic about Starbucks' prospects. "Transactions are up, our sales are up," he said. "What we hear from them is they love the experience and they think it's a great value proposition."
like who can afford their normal coffee anymore?! 
i know its about customer experience but come on ppl need a break 
and btw 1 billion to close stores is like, what even is that? 
they should be focusing on the prices lol! 
. I mean, can't people just drink at home like normal humans? In my hometown, we have amazing cafes too, but we also have parks and lakes to hang out in. It's like the whole country is stuck in a bubble of overpriced lattes 
. And what's with all these "experiences" that coffee shops try to create? Can't they just make a good cuppa without all the drama? 
I mean, who needs value menus when you can just charge $5 for every drink and expect everyone to be okay with it? 
It's not like people are trying to cut costs or anything. And good luck with the price hikes in 2026, buddy... I'm sure your loyal customers will just love shelling out more cash for their morning coffee 
. By the way, isn't $1 billion a pretty penny to invest in closing stores and cutting jobs? Guess that's what happens when you're more focused on experience than actual customer needs 
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than dealing with the reality of rising costs and struggling workers 
. I get it, experiences are important and all that jazz, but what about affordability? What if people can't afford to pay $7 for a coffee anymore? 
Maybe it's time to rethink that business model... or at least introduce some value options 
It seems like Starbucks is focusing too much on their premium experience, which might not be appealing to everyone. But, at the same time, I get why they want to maintain that unique vibe in their stores.
Still, I guess it makes sense for Starbucks to prioritize profitability. And if price hikes do happen, at least they're trying to be transparent about it.
they're talking about how their premium product & service is what sets them apart, but really its just making coffee expensive for us regular folk 