Starbucks CEO Brian Niccol revealed during the company’s first quarter fiscal year 2025 earnings call that the coffeehouse chain will cut “roughly 30%” of its food and beverage menu items by the end of the 2025 fiscal year.
“In the coming months, you'll see us begin to optimize our menu offerings, resulting in roughly 30% reduction in both beverages and food SKUs by the end of fiscal year 2025,” Niccol said on Tuesday’s call, per Axios. The CEO didn’t specify menu items will be axed, but said the chain will prioritize innovation by “being responsive to customer trends and their changing preferences.”
Niccol told Yahoo! Finance on Jan. 29 that Starbucks is looking to “clear the noise” for “better innovation” when it comes to its food and drink offerings.
“It’s a little bit of everything is how I would describe it,” he added. “Really what we focused on is what are the items that are not, frankly, selling a lot every day?”
Starbucks recently unveiled its brand-new Coffeehouse Code of Conduct, introduced free refills and revived its condiment bars. “We’ve also heard from customers and partners (employees) that access to comfortable seating and a clean, safe environment is critical to getting back to the Starbucks they know and love,” Starbucks said.
During Tuesday’s call, Niccol said the chain will also make changes to mobile ordering by implementing a “capacity-based time slot model that allows customers to schedule mobile orders.” The update, slated to occur mid-year, will “simplify customization options, improve upfront pricing and provide real-time price changes as customers customize beverages,” Niccol added.
