Starbucks discontinues serving the olive oil infused coffees as the new CEO continues restructuring the menu
November 04 - 2024
Coffee Geography Magazine
The new Starbucks’ CEO, Brian Niccol shakes up the menu in an attempt to win back customers. The olive oil infused coffees is considered as a failure among the beverages and is to be dropped from the US and Canada shops from early November.
The firm's sales have been tumbling as consumers see their budgets squeezed by the rising cost of living.
Starbucks says the Oleato range of drinks will still be sold in some outlets in Italy, Japan and China. While this decision was made prior to Brian Niccol taking the role of CEO, the decision to remove the beverages aligns with his strategy to simplify the menu.. Mr Niccol, who previously headed the Mexican food chain Chipotle, was brought into Starbucks to help turn the business around.
Brian Niccol - Chairman and Chief Executive Officer for Starbucks
Last week, he promised to simplify what he described as an "overly complex menu". Mr Niccol's comments came as Starbucks announced that its global sales had tumbled by 7% between July and September compared to a year earlier.
Starbucks rolled out the Oleato drinks across North America less than a year ago, after initially being sold in Italy.
The launch was part of an attempt to revitalise the chain's fortunes. The range features an iced shaken espresso and a latte with olive oil and oat milk.
The products were created by Starbucks founder Howard Schultz, who said he was inspired by a visit to the olive groves of Sicily.
Mr Schultz came up with the idea "after being introduced to the Mediterranean custom of taking a spoonful of olive oil each day", a Starbucks press release said in 2023.
But the drinks were met with mixed reactions from customers, with some complaining of stomach aches or bowel problems.
Founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker at Seattle's Pike Place Market initially as a coffee bean wholesaler, Starbucks was converted into a coffee shop serving espresso-based drinks under the ownership of Howard Schultz, who was chief executive officer from 1986 to 2000 and led the aggressive expansion of the franchise across the West Coast of the United States.
As of February 2023, Starbucks had 36,171 locations open across 83 countries, with 61% of the locations operating in the U.S. and China, and the rest operating elsewhere.