Starbucks shares received the equivalent of a triple shot espresso jolt when the company named Brian Niccol to spearhead a rebound last August. Ten months on, the caffeine buzz is fading amid growing signs that a turnaround of its core US business will take longer and be trickier than initially thought.
Selling a stake in its China business could perk up the coffee giant’s shares again. Niccol told the Financial Times that Starbucks was considering bringing in a minority investor and had received “a lot of interest”.
It would be a step in the right direction. Starbucks’ problems in the US — customer frustration with long wait times, understaffing and tired-looking stores — are execution issues. They are fixable. Since taking the helm in September, Niccol has slimmed down an overly complicated food and beverage menu, hired more baristas to speed up services and fixed up stores.