Starbucks’ (SBUX) sales have struggled to stay afloat over the past few financial quarters amid recent menu price hikes and a boycott from consumers over alleged political alliances in the Gaza war.
In its most recent earnings report, released on Jan. 28, Starbucks revealed that its comparable store sales in the U.S. declined by 4% year over year during the first quarter of fiscal year 2025.
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In the same region, Starbuck’s operating income, which is the company’s profit after expenses, also shrunk by a whopping 22% year over year.
Related: Starbucks revokes a major privilege customers love
Starbucks recently kicked off myriad changes in its stores such as pausing price increases, removing the upcharge for nondairy milk customizations and promising to deliver orders to customers in “four minutes or less,” in an effort to win back customers.
Starbucks customers should brace for another drastic change
However, shortly after the company revealed its latest sales performance, its CEO doubled down on another major change that may be bittersweet for Starbucks fans.
During a recent earnings call, Starbucks CEO Brian Niccol said that in the next few months, the coffee chain will be shrinking its menu by about 30% as it aims to be “more responsive and tuned into cultural moments.”
Amid stalled profits, Starbucks is promising many changes that aim to speed up order-to-delivery times.
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“In the coming months, you’ll see us begin to optimize our menu offerings, resulting in a roughly 30% reduction in both beverages and food SKUs by the end of fiscal year 2025,” said Niccol during the call. “As we do, we’ll work to lead this market with breakthrough beverage and food innovation. We’ll do this by being responsive to customer trends and their changing preferences.”
Niccol also said that this change will allow the coffee chain to reevaluate which food offerings it will sell to customers in the morning and afternoon.
Related: Starbucks makes desperate move to win back employees
Last year, Niccol previously hinted that Starbucks will be chopping down its menu as he stated that it was “overly complex” and a main contributor to long lines in stores.
The last time Starbucks booted major items from its menu was in November last year when it axed its Oleato Olive Oil line of drinks after launching it nationwide in January 2024.
Starbucks’ reduced menu may come as good news for baristas
Starbucks’ decision to simplify its menu comes after some of its baristas have taken to social media over the past few years to complain about customers overly customizing their orders.
In an interview with Business Insider in 2021, one former Starbucks employee stated that “the modifications are out of control.”
Starbucks employees have also admonished customers for following viral TikTok hacks that promote customized drink orders that are cheaper than original menu items. One employee even mentioned in a viral TikTok that was posted in 2022 that these hacks could result in a waste of product and can hold up lines as orders are being customized.
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In addition to announcing a smaller menu size, Niccol also announced during the earnings call that Starbucks will be updating its app to include “a capacity-based time slot model” that allows customers to schedule mobile orders.
In the middle of the year, the app will once again be updated to “simplify customization options, improve upfront pricing, and provide real-time price changes” as customers customize their beverage orders.
Starbucks will also be implementing digital menu boards in its cafes in the U.S. in the next 18 months to make offerings “more easily understood and to better show customization add-ons.”
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