Starbucks CEO Brian Niccol has ruled out launching a value menu, saying the coffee chain will continue prioritising customer experience over discount-led strategies even as inflation and rising coffee bean prices pressure operations. Niccol, who took charge in September 2024, told CBS News that despite cost pressures, Starbucks will not follow fast-food peers like McDonald’s in rolling out low-priced bundles.
Coffee prices climbed nearly 30% between January and September, weighing on the company’s margins. While Starbucks has paused price increases for now, Niccol cautioned that further hikes in 2026 may be unavoidable, calling price moves a “last resort” and stressing they would be applied “very surgically.”
Niccol said the brand’s differentiation lies in human-to-human engagement and the in-store experience. As part of its “Green Apron service model,” Starbucks plans to hire more baristas, streamline staffing during peak hours, and reduce wait times. He ruled out replacing baristas with AI, noting technology would instead support backend functions like supply chain management.
The company is simultaneously managing labour tensions, with Starbucks Workers United representing staff in more than 650 cafes. Niccol defended Starbucks’ wages and benefits, saying the company already offers “the best job in retail,” and signalled openness to discussions while calling union demands so far “unreasonable.”
Despite broader consumer caution amid inflation, Niccol said Starbucks customers remain willing to spend, highlighting rising transactions and sales. “They love the experience and they think it’s great value,” he said, adding that a strong store experience remains core to the brand’s appeal.
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