With Starbucks’ (NASDAQ:SBUX | SBUX Price Prediction) new CEO Brian Niccol stepping into his role in September 2024, investors have now had nearly a year to digest some of the changes he’s made at the helm. And thus far, there have been some intriguing updates worth considering.
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There should be. Given Niccol’s successful leadership at Chipotle, expectations are high that he’ll reinvigorate innovation in Starbucks and within the brand. Bringing consumers back to a company that has seen a marked decline in growth in recent quarters is a difficult goal, but by all accounts, the company does appear to be moving in the right direction.
For now, in most western markets Starbucks remains the premier coffee chain dominating this space. And while there are certainly local opportunities in the U.S. and other core markets, product launches have come under scrutiny for largely underwhelming.
With that in mind, I thought I’d try to put forward a few ideas of menu additions the general public may get in the car and drive to Starbucks for. Here are three top options I think the company could, and probably should, consider moving froward.
Botanical-Inspired Beverages
Starbucks Coffee sign with logo
Starbucks has made some significant headway in improving its speed and quality, focusing on the consistency of its offerings. Among the more recent offerings the company has brought to the table are its lavender beverages, which is a move that appears to be an effort to cater to changing consumer preferences.
I think the company’s shift toward botanical flavors is another move that could inspire a broader audience. And with some seasonal drinks, such as those featuring a range of botanical flavors, now being desired year-round, it will be interesting to see whether the company chooses to move its “PSL” strategy to other offerings as well.
I’d argue botanical-inspired drinks are one area that could certainly see an expansion from being a seasonal treat to one that’s more of a perennial staple. We’ll see. But with various creations possible on top of the company’s existing platform of such drinks, this is a top potential area of growth I think is wroth exploring.
Health-Conscious Food Options
Starbucks baristas working
Other rival quick service players such as McDonald’s (NYSE:MCD) haven’t had much luck in the way of trying their hand at more health-conscious food options. That said, Starbucks’ brand and overall strategy may see such a strategic shift make sense, if it’s taken on in a more broader sense.
The company has done some work on expanding its menu with nutritious food options that cater to wellness-focused consumers. For example, Starbucks could introduce an option like a protein-packed breakfast bowl, catering to those looking for something a bit more substantial (but healthy) around breakfast time and toward lunch.
Other plant-based snacks, additional soy or almond milk drinks, and a range of seasonal salads made with local ingredients could be steps in the right direction. I’d argue that one place Starbucks may be losing market share on is its food category. In this area, there’s probably more work to be done in terms of menu additions, but that’s where it will be interesting to watch what Niccol chooses to do over time.
More Customization Opportunities
Starbucks Coffee cup
One of the key differentiators that led to Starbucks’s success, in addition to its goal of being the so-called “third place” folks go outside of their home and workplace, is the company’s focus on customizing drinks for its clientele. Learning consumer preferences, and making customers happy by adding an extra shot of almond milk or making a drink hotter (or cooler) than is normal brought in tremendous numbers of repeat clientele (and goodwill among its existing customer base).
I think expanding the potential customization opportunities for customers could elevate this experience even further. Of course, Starbucks is up against the gun in terms of providing better efficiency (and shorter lines) at its core high-performing locations. But the reality is that with technological improvements and a greater number of guests ordering via the app, I do think it’s possible to make the customer experience feel even more intimate than it already is.
Allowing Starbucks aficionados to add PSL syrup to a wider range of drinks, add some botanical buzz to a spritzer, or add additional espresso when needed (we’ve all had those afternoons) can help. We’ll have to see if short-term efficiency-oriented moves win out, or if Starbucks’ management team will think long-term on this one. And I have to admit, this update will take a lot more firepower from upper management to be approved. But I think it’s worth a shot.
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