Starbucks to “hit the pause button” on price increases in the new year, CEO says

Starbucks has already implemented some major changes this year, including eliminating the surcharge for non-dairy milk, introducing “customization guardrails” to empower baristas and elevating its in-store experience. Despite these major plans, the coffeehouse chain is leaving one thing untouched: Menu prices. 

In a Dec. 5 interview with ABC News chief business correspondent Rebecca Jarvis, Starbucks CEO Brian Niccol said the chain will not increase its food and drink prices.

“The approach we’ve taken right now is we’re going to hit the pause button on any pricing for this fiscal year,” Niccol said. “I still think there’s an opportunity for us to simplify the pricing architecture right now — I don’t love the fact that in our app right now, while you’re doing this customization, it doesn’t inform you what has happened to the price, so I want to get more transparent with the pricing.”

Additionally, Niccol told Jarvis that Starbucks is planning to roll out a “very orderly mobile order business with its own dedicated pickup area.” 

“You’re going to have an experience where when you walk in and you interact with the barista . . . it’s going to be really quick for that brewed cup of coffee,” he said. “My hope is we can get you a brewed cup of coffee in less than 30 seconds.”

Niccol said the chain is also improving its in-store ordering by serving espresso drinks in less than four minutes and offering fewer — but better quality — menu items.   

“We’ve got a lot of offerings that there’s just one or two of these ordered a day,” he said. “The way I talk about it is, we’re going to do fewer things, but we’re going to do fewer things better.”