How do you know your corporate culture initiative is actually working? For Starbucks Corp. (SBUX) CEO Brian Niccol, the answer came from an unlikely source: Reddit.
When Reddit Becomes Your Focus Group
Niccol, who previously ran Chipotle Mexican Grill (CMG), recently told The Wall Street Journal's Alan Murray that he knew his turnaround plan was gaining traction after stumbling across a Reddit thread about the Starbucks interview process. The thread revealed something interesting about what job candidates were being told to prepare for.
According to Niccol, applicants going through interviews were asking the typical question: "What's one of the questions I should be prepared for?"
The answer they were getting? "You better be prepared to talk about how you like customer service."
For Niccol, this was a lightbulb moment. The fact that customer service had become a focal point in hiring conversations suggested that the company's renewed emphasis on service standards was actually being internalized across the organization. "When I saw that in the Reddit thread, I was like, 'Okay, we're making progress,'" he said.
Bringing Back the Third Place
Niccol's "Back to Starbucks" plan, which officially launched in September 2024, represents an ambitious attempt to recapture what made Starbucks special in the first place. The strategy centers on transforming stores back into warm, inviting gathering spaces—the famous "third place" between home and work that Starbucks built its brand on.
The changes are tangible: condiment bars are returning, baristas are writing names on cups again, ceramic mugs are back for dine-in customers, the upcharge for non-dairy milk is gone, and there's a revised code of conduct. These might sound like small details, but together they signal a philosophical shift away from the fast-food efficiency model that had crept into operations.
When Niccol took the helm, he inherited a challenging situation. Competition was intensifying, consumers were increasingly price-conscious and gravitating toward more affordable beverage options, and the company faced mounting criticism from both employees and customers. Long wait times, inconsistent service quality, and the perception that Starbucks had become just another corporate chain were eroding the brand's emotional connection with customers.
The Numbers Tell a Mixed Story
More than a year into Niccol's tenure, early financial results suggest the turnaround is gaining momentum, though challenges remain. Starbucks reported fourth-quarter revenue of $9.57 billion, which exceeded analyst forecasts. Global comparable sales increased 1% compared with the same quarter last year—a modest gain, but a positive direction after recent struggles.
The company's adjusted earnings per share of 52 cents, however, fell short of the 56-cent consensus estimate, indicating that the operational improvements haven't fully translated to bottom-line performance yet.
Market Performance
The stock has had a rough ride, falling 6.58% year-to-date. Starbucks currently holds a market capitalization of $96.94 billion and has traded in a 52-week range between $75.50 and $117.46. The stock closed at $85.25 on Tuesday, down 0.37%.
Market data indicates that SBUX is showing short-term upward momentum while experiencing medium- and long-term consolidation—suggesting investors are cautiously optimistic but want to see sustained improvement before fully buying into the turnaround narrative.
The real test will be whether these cultural changes and operational improvements can drive sustained traffic growth and margin expansion. Reddit threads are one thing, but quarterly earnings reports are quite another. For now, though, Niccol seems encouraged that the message is getting through—one job interview at a time.