Dive Brief:
- Starbucks posted another strong quarter with help from its CX investments, and the company is now “back on its front foot” two years into its Back to Starbucks initiative, CEO Brian Niccol said on a Q4 2026 earnings call Thursday.
- Average service times remained on target, and the company continues to refine its operations to improve throughput and consistency, according to Niccol. As of the end of Q4,the company had completed more than 1,700 store uplifts to make its coffeehouses feel warmer and more comfortable.
- The plan of putting the customer at the center of every decision while supporting employees “is working,” Niccol said. “More customers are visiting us because the Starbucks experience is better.”
Dive Insight:
Starbucks will continue to elevate its customer experience in 2027, and its plans will focus on improving its app, loyalty program and drive-thru experiences.
“Starbucks has built an exceptional digital experience in one of the world's most engaged customer communities,” Niccol said. “In the year ahead, we'll make our industry-leading Starbucks app even more intuitive for customers to order, customize and have frictionless access wherever they are.”
The coffee company will invest in its digital and drive-thru experiences on the back of a solid quarter.
Global comparable store sales rose 7.2% year over year in Q4, according to an earnings release. U.S. comparable store sales grew 7.7% year over year, driven by increases in comparable transactions and average ticket size.
The number of 90-day active members in Starbucks Rewards reached 36 million during the quarter, growing both year over year and quarter over quarter, according to Niccol. However, opportunities remain to further enhance the program.
The coffee company added loyalty tiers in January, and members’ movement up the ranks is primarily driven by purchase frequency, Niccol said. Members in the lowest tier, Green, start at a lower frequency level, while Gold and Reserve members spend more often.
Starbucks is exploring ways to add more personalization to its loyalty program, which is expected to drive even greater frequency as well as ticket size among members, according to Niccol. The personalization push will extend to the entire Starbucks app experience, with plans to update the menu experience with content and recommendations based on the customer’s preferences.
In the second quarter of next year, Starbucks plans to directly integrate delivery options into the apps and let Starbucks Rewards members earn and redeem points on delivery orders, according to Niccol. Other plans include using AI for enhancing search and discovery.
Starbucks is working to make its drive-thru experience faster and more personal as well, Niccol said. Plans include testing AI that will help baristas handle orders more accurately and efficiently and exploring experiences that recognize customers on arrival with personalized digital menus and easier payment options.
“It'd be premature to get specific on this, but the whole rationale behind it is to give a better customer experience and also a better partner experience, which then results in more throughput that ultimately drives the top and bottom line,” Niccol said.
