Starbucks reported this Sixth consecutive quarter The decline in stores on Tuesday, but the CEO of the coffee series says things are ready to roam with new products and sophisticated services.
According to Starbucks’ Latest income report For a 13 -week period ending on 29 June, stores sales fell by 2% worldwide and in North America, while international store sales were flat. The net revenue was a bright place, increased by 4% to $ 9.5 billion for the quarter, increased by 3% compared to the same period last year.
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Starbucks CEO Brian Nicole said in the earnings report that Starbucks, who have more than 41,000 stores globally, is on track to divert stores sales – and the company is “ahead of schedule” to make sweeping changes next year.
Nicole said, “In 2026, we will highlight a wave of innovation that promotes development, enhances customer service, and ensures that everyone experiences the best of Starbucks.”
Starbucks CEO Brian Nicole. Photo by Robin Merchant/Getty Image
Wall Street was encouraged that despite the decline in sales for the quarter, Starbucks’ turnaround strategy was becoming effective. For example, TD Cowen Analyst Andrew Charles A research note on Wednesday states He is more confident that the company’s “more aggressive innovation agenda” will improve the sales of Starbucks.
One in Call with investors After the release of the report, Nicole expanded on how Starbucks is implementing its turnaround strategy. There are five main points which the CEO has created.
Protein adding cold foam
Starbucks is jumping on protein trend, like companies Papsi And snack bar company David protein, by infecting a popular add-on cold foam with protein. Nikkol told investors on calls that while sales had declined, sales of cold foam increased by 23%, making it one of the “most popular modifier” of Starbucks.
He said that by the end of Starbucks 2025, 15 grams of protein and no additional sugar would introduce a new protein cool foam. In June, Report has been stated Protein cold foam can be bananas.
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Starbucks first introduced a cold foam, formed by the barristas frothing milk or cream in 2014 for its Seattle Stores in 2014, according to the expansion of the add-on for all the cold beverages in 2018. Restaurant business,
‘Sugar shortage’ with coconut water -based drinks
Nikkol said on the call that Starbucks started testing coconut water -based tea and coffee drinks in select places in New York, including coconut water matka and cold brow. Large, regional tests are soon to be followed.
The company said that coconut water -based drinks contain a standard starbucks berry lemonade refresher with a third of Chinese content, with an additional boost of electrolytes.
“We are working on sugar shortage,” stated by Dana Pelicano, head of Starbucks Product Development, in an interview Bloomberg,
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Pelicano additionally stated in the interview that Starbucks is working on making other Chinese-cum or sugar-free drinks by replacing Chinese syrup with other sweetness, and other sweetness such as coconut.
New food options
Starbucks is focusing on “artisan food” which is beyond breakfast by re-starting its menu with gluten-free and high-protein options.
Nicole said on a call with investors, “We are going to find out how we get the right food and right drinks so that we are more relevant in that afternoon.”
Starbucks stated in February that it would cut the company by 30% of its menu in the US by the end of the company’s financial year 2025.
Close mobile order store
Starbucks is closing its pick-up-cavalry store in the US that focused on a mobile order exactly six years after introducing the concept.
The coffee chain will still provide an option to order through mobile, including a service About one third Of transaction.
The US only picks up-a-quarter location “lacks” lack, “Nicole said on an investor call. There are about 80 to 90 in America in New York City, some Can be converted Nicole said that in the 10-seight “small version format” places, Nicole said.
Nicole said on the call, “We have excessive transactions and warmth and lack of human connections.”
“Green apron service” offered
“Green Apron Service” is a new standard Starbucks is establishing a more familiar experience for customer service interaction for its barsista. Nikkol said on a call with investors that a pilot testing of “green apron service” in 1,500 stores resulted in an increase in sales, transactions and customer service time.
Starbucks is rolling the “Green Apron Service” for all US coffee houses by mid -August.
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