Starbucks is about to make some major changes, and many of them seem geared at the younger generation. In a new interview with Bloomberg, Brian Niccol, who took over as chief executive officer in September, explains the changes coming to Starbucks and shares the company’s approach to changing the brand into something Gen Z will be into. Here are 6 ways the coffee giant is chasing Gen Z right now.
They’re Mining TikTok for Ideas
Starbucks’ brand officer revealed the team actively researches TikTok to track Gen Z trends. Cold foam is one of the biggest ones. During the interview Niccol reveals that his morning drink is an Americano with an extra shot, but that he “bounced around on the cold foams” after his wife became interested in them. “She was getting the matcha latte with the pistachio [sauce] and the chocolate foam,” he says, referring to a Dubai inspired viral trend. “And she was like, ‘You haven’t had the chocolate cold foam?’ I’m like, ‘No.’” He adds, “And now I’m hooked on the chocolate cold foam.” He also hired Tressie Lieberman, who worked with him at Taco Bell and Chipotle, as global chief brand officer. She spends at least an hour a day on TikTok to see what’s trending to make the menu “relevant, modern and premium.”
They’re Leaning Into Health and Wellness
Starbucks “is increasingly focused on health and wellness,” according to the story. For example, they are testing a sugar-free vanilla latte with banana protein cold foam, one example of the shift toward functional, feel-good items.
They’re Going Big on Protein
From new protein-heavy drinks to high-protein snacks, the menu is getting a muscle-minded makeover. Protein is “where culture is,” Lieberman says. “You have to live it, and you have to be in it.”
They Removed the Sugar From Matcha
To align with Gen Z’s clean-label preferences, Starbucks removed sugar from its matcha powder in January. Niccol revealed on an earnings call that sales increased 40% from the prior year after the move. In a June 18 post on X after meeting with Niccol, US Health and Human Services Secretary Robert F. Kennedy Jr. said the CEO “shared the company’s plans to further MAHA its menu,” using the acronym for Make America Healthy Again.
They’re Pushing a Premium Vibe
During the interview, Niccol brings the journalist to a newly renovated Starbucks in Seattle with more “modern, premium” offerings. New updates in the store include plush mustard-colored chairs and cushioned benches in an olive tone, surrounded by wood-paneled walls. “I like it,” said Niccol. “I like the furniture. I like the lighting. I like the music.” In general, he is all about the vibe, which includes people doing homework and chatting with friends, and even a person working on a tax return. “Every seat is full. That’s what we want. What we should be able to do is have spaces for people that, if you want to socialize, you can socialize. If you want a moment for yourself, you have a moment for yourself.”
They’re Testing Sparkling and Snackable Options
“Premium” will also mean additions such as an aperitivo menu with “sparkling beverages, sippable coffee drinks and snackable bites,” Niccol told investors. Additionally, the are testing fresh baking, including a croissant that is “flakier and fluffier than the current reheated version,” according to the writer.
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