Starbucks has announced that it will be phasing out its Oleato beverages, which are infused with olive oil, from the majority of its locations as part of a strategy to simplify its menu offerings.
The company, headquartered in Seattle, confirmed this development on Wednesday, coinciding with the upcoming announcement of its fiscal fourth quarter earnings. Later that day, Brian Niccol, the newly appointed Chairman and CEO, was expected to address investors during his inaugural conference call since taking the helm.
Starting in early November, Oleato drinks will no longer be available at most Starbucks outlets, although select locations in Italy, Japan, and China will continue to offer them.
The move marks a departure from the vision of Howard Schultz, the chain’s former leader, who conceptualized the Oleato line after visiting an olive oil producer in Sicily. When he launched the beverage in Italy at the beginning of 2023, Schultz touted it as a “transformational idea.” It was introduced to U.S. customers shortly thereafter.
Following Schultz’s resignation as CEO in March 2023 and his exit from the board last fall, Starbucks has faced declining sales, a trend attributed to customers resisting high prices and workers struggling with the increasingly complicated menu.
Niccol, who previously held the CEO position at Chipotle, took on the leadership role in September. During a statement regarding the firm’s preliminary earnings for the fourth quarter, he emphasized the urgent need to streamline the “overly complex menu” and improve operational efficiency for baristas, particularly during busy morning hours.
While the decision to remove the Oleato line from most stores was made prior to Niccol’s appointment, it aligns with the company’s broader initiative to enhance its menu simplicity and overall customer experience.
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