Starbucks CEO Says Turnaround Effort is 'Ahead of Schedule'

Ten months after taking the helm as CEO and chairman of Starbucks and declaring that a massive reset was on the horizon, Brian Niccol told investors during a third-quarter earnings call Tuesday that his company's turnaround efforts were "ahead of schedule" after several quarters of falling sales.

“We've fixed a lot and done the hard work on the hard things to build a strong operating foundation, and based on my experience of turnarounds, we are ahead of schedule,” Niccol said during the call. “In 2026, we'll unleash a wave of innovation that fuels growth, elevates customer service, and ensures everyone experiences the very best of Starbucks. We're building back a better Starbucks experience and a better business."

Tuesday's earnings report showed comparable stores sales globally declined 2 percent, while net revenue rose 3.8 percent to $9.46 billion, slightly better than analysts expected, multiple news outlets reported.

Niccol's "Back to Starbucks" strategy, outlined in September, pushes for a simplified menu, a cozy coffeehouse atmosphere, improved customer service, and an improved culture. He said frontline employees' performance is up and turnover has gone down, and customers have noticed Starbucks' speed and accuracy has improved, with customer complaints down.

Niccol's "Green Apron Service" training program is also currently being rolled out as Starbucks leans into hospitality by improving frontline employees' interactions with customers. He said the coffeehouses that have gone through the training program have seen improvements in transactions, sales and customer service times.

Total Retail's Take: Starbucks is investing in labor, soft skills, and experience design, and it seems to be working. Niccol said to expect a "wave of innovation" at Starbucks in 2026, with new features coming to its loyalty program, a new app, and new food and beverage offerings, including protein cold foam.

This approach underscores a broader retail trend of providing personalized experiences while also bringing the coffee chain back to its roots. Indeed, Starbucks founder Howard Shultz was inspired by the Italian coffeehouse culture and wanted to inject that into American coffeehouses.