Starbucks announced strategic efforts to improve its underperforming U.S. market by launching new products and enhancing store operations. This announcement followed the company’s fiscal third-quarter report, which showed a 4% increase in revenue, reaching $9.5 billion—surpassing expectations from Wall Street. However, sales at established U.S. stores declined by 2% for the April to June period, marking the sixth consecutive quarter of falling same-store sales. Despite higher spending per order, customer visits declined by 4%. In contrast, same-store sales in China, the company’s second-largest market, recorded growth. Starbucks is currently evaluating approximately 20 partnership proposals in China to expand into smaller cities, according to Chairman and CEO Brian Niccol.

To address domestic challenges, Starbucks is introducing the “Green Apron Service” model across U.S. locations beginning in mid-August. This initiative, tested in 1,500 stores, aims to raise hospitality standards and improve staff efficiency during busy hours. Alongside operational upgrades, new software now enables quicker order sequencing, with 80% of in-store orders completed within four minutes. Starbucks is also streamlining its menu to focus on efficiency before introducing innovative offerings, including a cold foam protein drink, customizable energy beverages, gluten-free options, and coconut water-based products. Niccol emphasized the importance of employee collaboration in product development to ensure consistency. The company is further investing in store design improvements, planning cost-efficient formats with seating areas and drive-thrus to encourage customer visits. These reforms reflect Starbucks’ attempt to revitalize consumer engagement and remain competitive in a fluctuating market environment.