(qlmbusinessnews.com . Thurs 27th Feb, 2025) London, UK —
Starbucks Axes Royal English Breakfast Latte as Part of Major Menu Overhaul & Job Cuts
Starbucks is set to cut 1,100 jobs and streamline its menu across its US stores in a bid to revive sluggish performance in its home market. The move comes as the coffee giant looks to combat falling sales and long queues that have plagued its American outlets.
Among the first items facing the chop is the Royal English Breakfast Latte, a blow to fans of the quintessentially British-inspired beverage. White Hot Chocolate and certain Frappuccinos are also being removed.
However, the changes don't stop there. Starbucks plans to reduce its US menu by nearly a third over the next year, aiming to shorten waiting times and improve the overall quality and consistency of its offerings.
The company has been grappling with declining sales figures since last year, particularly in the United States. New Chief Executive Brian Niccol, previously at the helm of Mexican fast-food chain Chipotle, was brought on board last year to steer the business back on track. Niccol has expressed his desire to return Starbucks to its roots as a traditional coffee shop.
Starbucks stated that the drinks being discontinued “weren't commonly purchased, can be complex to make, or are similar to other beverages on our menu.” The changes are slated to take effect on March 4th.
“We're simplifying our menu to focus on fewer, more popular items, executed with excellence,” the company said on Monday. “This will make way for innovation, help reduce wait times, improve quality and consistency, and align with our core identity as a coffee company.”
The job cuts, announced on Monday, will primarily impact corporate “support partner” roles and will not affect jobs or investments in-store.
Affected staff will be informed by mid-day on Tuesday. Starbucks is also eliminating “several hundred” vacant positions.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Mr Niccol wrote in the announcement.
Starbucks has a global workforce of over 360,000 employees and operates or licenses more than 40,000 stores worldwide.
The US is its largest and most crucial market, but its brand image has been tarnished in recent years due to customer complaints about lengthy wait times and inflated prices, as well as ongoing tensions regarding unionisation efforts by baristas.
The company has also faced complications from the Israel-Gaza conflict, with facing boycott calls from both pro-Israel and pro-Palestine groups, despite the company's efforts to remain neutral.
Last month, Starbucks reported an 8% decrease in transactions at US stores open for at least a year compared to the same period last year.
The focus on menu simplification represents a significant departure from past strategies that prioritised highly personalised drinks.
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