After missing the mark with its quarterly results, the American coffee chain behemoth Starbucks saw its shares decline by over 4 per cent in the intraday trade. On Wednesday, however, the shares rebounded a little as the company looks to change its ways.
Changing Ways
As per recent reports, the coffee company that recently inducted a new CEO is looking to simplify its means of making coffee.
The company that started as an entity that sold coffee beans entered the business of making coffee and has expanded itself significantly under the leadership of its multi-tenure CEO, Howard Schultz.
Simplifying the Menu
One of its biggest attractions, according to some, has become a bit of an Achilles heel. And it is indeed the facet of complicated and almost abstruse orders and ever-expanding items available on the menu.
As simple as they may be, the complexity of the company menu has been an issue that many pointed out as one of the reasons for the company's slowdown.
Starbucks headquarters in Seattle. |
This creates logistical issues, with there being a dearth of qualified baristas who could prepare these orders. In 2014, the company had as many as 255 items on their menu; in the past decade since then, the menu and its size have not aided its sales.
The chain operates 38,137 stores around the globe. In India, it runs its stores in partnership with Tata Group.
Starbucks recently appointed a new CEO in the shape of the former Chipotle boss Brian Niccol after its former CEO, the Indian-born Laxman Narasimhan, was let go.
Starbucks Shares In Green
The share of Starbucks Corp. listed with NASDAQ saw its shares rise by 2.43 per cent in the past 5 trading sessions, with a drop in value on October 22 and October 23.
The shares of the company further made gains on Thursday, October 24. The shares of the burger company closed at USD 97.65. This was a result of a gain of 0.86 per cent or Rs 0.83.
