Starbucks Corp (NASDAQ:SBUX, ETR:SRB) shares moved higher after its new CEO Brian Niccol outlined his plans to better the coffee chain.
The company has faced numerous challenges in recent quarters, including falling sales, boycotts over its perceived ties with Israel, and pressure from activist investors.
In an open letter posted on the Starbucks website, Niccol wrote that in some Starbucks locations, especially in the United States, the company is not “always delivering.”
“It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better,” he wrote.
He outlined key areas upon which the chain intends to improve which include providing staff with career and growth opportunities, delivering customers quality drinks and food on time, and reestablishing Starbucks as a “community coffeehouse.”
“My focus for the first 100 days is clear. I’ll spend time in our stores and at our Support Centers, meeting with key partners and suppliers, and working with our team to drive these critical first steps,” Niccol said.
Niccol, who previously served as CEO of the Mexican food chain Chipotle, last month replaced Laxman Narasimhan in the top job at Starbucks.
The CEO has drawn criticism for his intention to commute 1,000 miles via private jet from his home in Newport, California, to the Starbucks headquarters in Seattle.
Shares of Starbucks were up 3.2% at about $96 in the early afternoon on Wednesday.