Memo to Starbucks CEO Niccol: You’re Out of Food

Starbucks Corp. (NASDAQ: SBUX) CEO Brian Niccol has made several poor decisions since he took his job in September. Among the worst, if not the worst, is that Starbucks runs out of food at some locations. It is an invitation for people to leave their stores and buy their coffee and food somewhere else. Perhaps New York is unlike other Starbucks locations. But, more often than should happen (it should never happen), baristas tell customers that something they want won’t be in until tomorrow—maybe.

The inventory issue undercuts some other plans Niccol has. Its stores do not serve all the drinks and food they used to. Cutting back the menu is supposed to speed the rate at which people are served. Baristas have also been empowered in ways that will also increase service times. Those wait times were an objection of some customers before Niccol arrived.

Starbucks baristas were ordered to wear outfits that were more uniform. It is a little puzzling why this would help Starbucks return from its less than a mediocre performance, particularly according to investors.

Starbucks also said it wants to be more of a community coffeehouse. It wants people to “sit and stay.” That is hard when there are not enough seats for customers. That is a problem, at least in some stores in Connecticut, New York, Michigan, and New Jersey.

Some Starbucks stores are not always clean, and trash piles up outside them. That does not create an environment likely to bring in people.

Niccol recently made a decision that will likely cause a drop in morale. He said that many of the company’s managers need to return to the office four days a week. He also wants some to return to Seattle, where Starbucks is headquartered. Most of those who don’t will not have jobs. Niccol has an arrangement where he can work from southern California and fly a private plane to Seattle.

Until Starbucks has better inventory management, it is inviting people to go to McDonald’s.

Howard Schultz, please come back.

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