- Many consumers are cutting back on spending due to concerns about the economy.
- Starbucks CEO Brian Niccol said that won't impact the chain's turnaround plans.
- Niccol said Starbucks wants to win customers over by being "the greatest customer service company."
Some consumers are cutting back their spending, including on food and dining out.
That might seem like a problem for Starbucks, where a standard pumpkin spice latte can set you back $6. Starbucks CEO Brian Niccol has a plan to win over cost-conscious customers, though: Offer great customer service.
Speaking at the Fast Company Innovation Festival on Tuesday, Niccol was asked whether he worried that concerns about the economy and personal spending might keep middle-class customers away from the chain. Niccol has spent the past year trying to turn around sales growth at the coffee chain — often investing money to do it.
Niccol said Starbucks is trying to draw in customers with a great experience. "I would love for Starbucks to become the greatest customer service company," he said at the event.
"Right now, when I ask people to name me a great customer service company, I usually get a blank stare," Niccol said.
That points to an opportunity for Starbucks if it can offer both exceptional service and a menu that customers like, he said.
"When you look at putting those two things together for the price that we will have to charge for it, I think it will turn out to be invaluable," Niccol said.
A Starbucks spokesperson directed Business Insider to Niccol's earlier commentary, which suggested customers were finding value from the strategy.
"Customer value perceptions are near two-year highs, driven by gains among Gen Z and millennials, who make up over half our customer base," Niccol said on the company's third-quarter earnings call.
Under Niccol's leadership, Starbucks has made several changes the company said are aimed at improving service. It's adding shifts for baristas as well as asking them to write personalized messages to customers on cups, for instance. Niccol also said during the third-quarter earnings call that the company aims to get customers their drinks in cafes and drive-thrus within four minutes of when they order them.
The initiatives are part of Niccol's "Back to Starbucks" turnaround effort. Niccol has said that he wants each café to be "a welcoming coffeehouse" for patrons.
A little over a year after he took the company's top job, some analysts who follow Starbucks said they're still watching some key indicators — such as foot traffic and customer retention — for evidence that Niccol's strategy is working.
Niccol said Tuesday that feedback from customers and store employees so far suggests that Starbucks is making progress.
"I think we're on our way to being that world-class customer service, customer-experience company," he said.
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