News
At Starbucks, Ceramic Mugs and Handwritten Notes
Seattle chain moves quickly to change its image
By Rob Smith February 4, 2025
Starbucks is out to change the perception of itself and a world accustomed to grab-and-go culture. How? Ceramic mugs, handwritten notes and condiment bars.
Company CEO Brian Niccol talked about the company’s reintroduction of ceramic mugs several times during an earnings call with analysts yesterday. It’s a decisive shift from the signature paper cups prevalent throughout the fast-paced coffee industry, one meant to elevate the customer experience as the chain seeks to reinvent itself after several challenging years.
“We call it a mug hug, right?” he said. “They’re like holding on to that ceramic mug and they’re enjoying their moment in the cafe, and there’s not all this congestion surrounding the counter. So, it’s just a much more pleasant, peaceful, coffee experience.”
Starbucks said foot traffic at stores declined 8% in its fiscal first quarter, but order sizes increased, so the company reported only a 4% drop in sales year over year. It’s the company’s first earnings report since Niccol took over as CEO with bold plans to reinvent the struggling coffee giant.
Starbucks’ reinvention plan is in full swing. The company said it almost doubled its spending on advertising; is moving away from discounts and promotions to focus on loyal customers; has reintroduced handwritten notes on cups to “better connect with customers;” and is simplifying and reducing menu options.
Niccol added that Starbucks sees the potential to “double” its store count across the United States. The company has closed several stores in Seattle, but also said it would open two new stores, in Ballard and on Rainier Avenue. The Ballard store will feature the company’s new Siren system, a technology designed to lessen the workload for baristas.
“In the coming months, our teams will be focused on refreshing our menu boards and improving cafe merchandising to reflect the coffeehouse feel and better showcase our simplified menu,” Niccol said. “Condiment bars will be back in all our U.S. company-owned stores by the end of the week.”