Starbucks is making a bold move to revamp its strategy by hiring more baristas, increasing their hours, and stepping back from automation strategies that just aren’t working.

Since Brian Niccol took the helm as CEO last September, he’s made it his mission to completely reshape the company's approach to customer service and satisfaction.

In a recent discussion with investors, Niccol admitted that cutting staff in favor of high-tech solutions was a miscalculation. "For the last couple of years, we’ve been reducing labor in stores, hoping that machines could fill the gap, but that assumption has proven to be incorrect," he stated.

Shortly after his arrival, Niccol launched a pilot program to increase staffing in select stores, which he has now expanded to about 3,000 of Starbucks’ 36,000 locations worldwide.

He emphasized that technology alone cannot provide the exceptional customer experience that Starbucks aims for; it's the combination of having well-staffed stores and the right technology that will make the difference.

Additionally, Starbucks is pulling back on its automated "siren craft system"—the very technology intended to simplify drink preparation.

Niccol’s appointment was a landmark executive shake-up, bringing a hefty sign-on package of up to $113 million—four times that of his predecessor. As the fourth CEO in less than three years, he’s not wasting any time in overhauling Starbucks’ complicated menu and pricing strategies.

But why the sudden shift? Customers are turning away from the coffee giant, especially with some drinks rising above £6, as wallets tighten amid economic uncertainty.

To reinvigorate the customer experience, Niccol is exploring options for baking fresh goods and assembling items right in the cafés, following successful trials in the UK.

Small touches matter too; the introduction of handwritten notes on cups, the use of ceramic mugs, and creating more inviting seating areas have all contributed to drawing customers back into the stores.

Despite these strategies, the results have been underwhelming. Starbucks recently reported a disappointing 1% drop in global sales for the first quarter, marking its fifth consecutive quarterly decline.

While the US market has remained sluggish, there’s been a silver lining with sales increases in China and Canada.