- Starbucks CEO Brian Niccol can’t get enough of the chain’s ceramic mugs for in-store customers.
- He mentioned them thrice in a Tuesday earnings call, during which the chain reported a 4% sales dip.
- The reintroduced mugs are part of Niccol’s efforts to make Starbucks a more inviting place.
Brian Niccol can’t get enough of Starbucks’ ceramic mugs.
Since the CEO moved from Chipotle for the top job in September, he’s focused on making Starbucks more inviting for customers to hang out.
Niccol introduced several changes, including having more comfortable chairs in the cafés and serving customers their coffee in ceramic mugs again.
On the company’s Tuesday earnings call, he brought up the mugs three times.
“We reintroduced ceramic mugs and handwritten notes on cups to better connect with customers and elevate the café experience for those who choose to stay and work,” he said in his opening statements.
He then coined the term “mug hug,” referring to customers enjoying their coffee in the cafés.
“They’re holding on to that ceramic mug and they’re enjoying their moment in the café, and there’s not all this congestion surrounding the counter. So, it’s just a much more pleasant, peaceful coffee experience,” Niccol said.
He said that the chain has been working to clear counter space from a deluge of mobile orders.
Toward the end of the call, he said the ceramic mugs and other “for-here” tableware make the customer feel like Starbucks is a spot where they can “slow down,” connect with others or take time for themselves.
It’s unclear when Starbucks stopped serving in-store coffee in mugs. The company has continued to use them in some stores, including internationally. The company’s annual reports last featured photos of the ceramic mugs in 2006, after which they displayed disposable cups and to-go bags.
The company did not respond to BI’s request for comment.
Starbucks’ cups have been a large part of its brand identity. It coined November 17 its “Red Cup Day,” when customers can get reusable 16-ounce red cups with the purchase of a holiday drink.
Starbucks is working on a slew of changes
In an internal memo obtained by BI on Tuesday, the chain directed staff to start writing messages to customers on single-use coffee cups.
“Handwritten notes on our cups have proven to be a simple, yet meaningful action that fosters moments of connection with our customers,” the memo read. “To build on that, we are updating our expectation for writing on cups. Starting 2/24, the expectation will shift to include a personalized note on all cups.”
The company suggested employees write a simple affirmation, such as “You’re amazing,” or “Hello again” for regulars.
The coffee chain, which has been struggling with sliding sales in recent quarters, seems to be turning around. Comparable sales fell 4% for the quarter ended December 29, the company said on Tuesday, a smaller decline than predicted by analysts.
On the earnings call, Niccol and Starbucks’ finance chief said other changes slated for this year include reducing the number of items on the menu, introducing a new algorithm for mobile orders, and adding digital menu boards.
The company’s stock was flat after hours. It’s up 6.7% in the last year.
