Starbucks CEO: Starbucks Corporation (SBUX) is facing unprecedented challenges as it reports a sharp decline in sales for the third consecutive quarter. The coffee giant’s new CEO, Brian Niccol, is stepping into a tumultuous environment, with urgent changes needed to reconnect with customers and revive the brand’s core identity.

In an unexpected preliminary earnings report released on Tuesday, Starbucks revealed a staggering 7% drop in global sales, with the U.S. market suffering a 6% decline and an alarming 14% fall in China for the quarter ending September 29. The disappointing results prompted the company to suspend its financial guidance for the remainder of the year, leading to a nearly 5% drop in shares during premarket trading.

Niccol, who previously turned around Chipotle’s fortunes, is committed to implementing a “Back to Starbucks” initiative aimed at simplifying the customer experience. He acknowledged that the coffee chain has become too complicated, stating, “We’ve made it harder to be a customer than it should be.” His focus will be on refining the menu, addressing staffing issues, and enhancing communication with patrons.

Among the issues identified are chronic understaffing and overly complex menu options that have alienated loyal customers. Baristas have voiced concerns about their working conditions, demanding better pay and improved staffing levels. Niccol plans to empower baristas and ensure they have the support needed to deliver exceptional service, stating, “To succeed, we need to address staffing in our stores, remove bottlenecks, and simplify things for our baristas.”

In a shift towards a more community-focused approach, Starbucks is enhancing its marketing strategies, emphasizing quality coffee made by skilled baristas in a welcoming environment. This comes as the company aims to attract a broader customer base beyond its rewards program members.

As Starbucks prepares to release its full earnings report on October 30, investors and customers alike are keen to see if Niccol’s vision can restore the brand’s reputation and drive sales back to growth. Analysts remain cautiously optimistic, noting that while the road ahead is challenging, Niccol’s proactive approach is a promising sign that Starbucks is ready to reclaim its status as a beloved community coffeehouse.