According to Inc, Starbucks’ new CEO Brian Niccol – the former Chipotle CEO who doubled that company’s sales in his first year – is implementing a turnaround strategy that includes strict dress codes, customer interaction scripts, and mandatory “genuine” writing on customer cups with threats of repercussions for non-compliance. This represents a dramatic shift from Howard Schultz’s original 1980s vision of creating Italian-style café community and connection, where baristas were called “partners” and received unprecedented benefits like health insurance and college contributions for part-time workers. Niccol’s approach comes after Schultz stepped down multiple times and even went on a 2019 “listening tour” to understand how Starbucks lost its way. The current strategy appears to be backfiring by alienating the very employees who made Starbucks successful in the first place.
The fatal flaw in Starbucks’ turnaround
Here’s the thing about service businesses: you can’t script authenticity. Niccol’s approach of giving baristas strict guidelines and scripts fundamentally misunderstands what made Starbucks special in the first place. When Howard Schultz built the company, he understood that real connection happens organically – it’s not something you can mandate with threats of “repercussions” if employees don’t write something “genuine” on cups. The workplace has evolved, and command-and-control management just doesn’t work anymore, especially with younger workers who value autonomy and authenticity.
What Starbucks could learn from Barnes & Noble
Now here’s where it gets interesting. While everyone’s looking at Niccol’s Chipotle success, there’s a much better turnaround story happening at Barnes & Noble under CEO James Daunt. Daunt took over in 2019 when the bookstore chain was in steady decline, and he’s since expanded dozens of new stores. His secret? Giving complete freedom to local store managers – letting them display books however they want, price as they see fit, and basically turn each location into what feels like an indie bookstore. That’s the exact opposite of Niccol’s approach at Starbucks.
Trust versus control in service businesses
Basically, Starbucks is facing a fundamental choice: do they trust their people or control them? Schultz built the company on trust – calling employees “partners” wasn’t just branding, it reflected a collaborative relationship. Niccol’s scripts and dress codes suggest he believes tighter control will deliver consistency. But consistency at what cost? You might get identical customer interactions across stores, but you’ll lose the genuine human connection that made people loyal to Starbucks in the first place.
The real path to Starbucks’ revival
Look, Niccol’s goal to return Starbucks to its roots is good. The company has definitely lost its way. But the solution isn’t more corporate mandates – it’s rebuilding a culture where baristas feel supported rather than surveilled. If Starbucks takes care of its people, its people will take care of customers. And honestly, that turnaround will take care of itself. The company might benefit from looking beyond fast food playbooks and considering how other service businesses succeed through empowerment rather than control. After all, people don’t buy from brands – they buy from people they trust.
