Protein, Foam and Profits

Why Starbucks Is Betting on New Drinks and Tighter Operations to Fix Its US Sales Slump

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Starbucks is adding protein to the menu and experience back into the store—with new CEO Brian Niccol leading the charge. Facing continued U.S. sales struggles, the coffee chain is hoping a reset on both the product and operations front will keep the foam (and revenue) rising.

Niccol, who previously led successful turnarounds at Chipotle and Taco Bell, stepped into the Starbucks CEO role in September 2024. Since then, he’s wasted no time introducing a multi-pronged “Back to Starbucks” plan—emphasizing simpler menus, store remodels, and more engaging customer experiences.

In its latest fiscal third quarter earnings report, Starbucks posted $9.5 billion in revenue, exceeding Wall Street expectations. But same-store U.S. sales continued to sag, declining 2–3%, with a 6% drop in foot traffic cited as a key issue.

The Protein Shake Fix

A centerpiece of Starbucks’ new product strategy is a cold foam protein drink, designed to cater to consumers looking for nutrition with their caffeine. It’s a move aligned with broader shifts in consumer preference: the global protein beverage market is expected to grow at a CAGR of 8.5% through 2030, fueled by demand for functional, on-the-go nutrition.

“Customers are telling us what they want. More health-forward options, fewer gimmicks,” said Niccol during the Q3 earnings call. “We’re listening.”

In fact, Starbucks is paring back its once-bloated menu and returning focus to coffee quality, protein-rich alternatives, and beverages that support health-conscious lifestyles.

Store Fixes and Customer Experience

Beyond the cup, Starbucks is making tangible changes in-store. As part of the reset, the company is:

• Closing up to 90 mobile-order-only locations by 2026

• Remodeling 1,000+ stores to bring back seating, condiment bars, and café-style ambiance

• Investing over $500 million in operational upgrades, staffing, and customer connection training

  
  

“It’s about reconnecting with our café roots,” Niccol told Business Insider in a recent interview. “People want their coffee, yes—but they also want a place to sit, to talk, to feel seen.”

The return of Green Apron Service (more proactive staff interactions), handwritten cup messages, and more comfortable seating are all part of the emotional and sensory refresh Starbucks hopes will reignite U.S. loyalty.

Can the Reset Stick?

With over 15,000 U.S. stores—more than a third of its global footprint—Starbucks can’t afford to get this reset wrong. While sales abroad, especially in China, are slowly recovering, the real test remains at home.

According to Howard Schultz, who returned briefly in 2022 to stabilize the brand, Niccol’s strategy is a needed correction:

“Brian is doing what I should’ve done years ago—bring Starbucks back to its core,” Schultz said during a leadership summit.

So far, Wall Street seems cautiously optimistic. Starbucks stock jumped 4% on the heels of the Q3 earnings call, and analysts praised Niccol for combining operational know-how with cultural relevance.

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