Starbucks' CEO is so psyched to bring back a coffee shop staple that he talked about it 3 times on one call

Under the leadership of CEO Kevin Niccol, who took the helm at Starbucks last September, the company is striving to create a more inviting atmosphere for customers. Niccol, formerly of Chipotle, has implemented various changes to enhance the café experience, such as introducing more comfortable seating and reintroducing ceramic mugs for in-store coffee service.

During a recent earnings call, Niccol emphasized the significance of the ceramic mugs, mentioning them multiple times to underline their role in connecting with customers. He described the cozy experience as a "mug hug," where patrons can relax with their beverages without the chaos of mobile orders crowding the counter. This shift aims to cultivate a more serene and enjoyable coffee experience in Starbucks locations.

While it is unclear when the coffee chain ceased the use of ceramic mugs for in-store service, international locations have retained this practice. The last documented appearance of ceramic mugs in Starbucks' annual reports was in 2006, after which disposable cups became the norm. The lack of clarity on this shift highlights a change in Starbucks' customer experience strategy.

In addition to reintroducing mugs, Starbucks is fostering customer interaction by encouraging staff to write personalized handwritten notes on disposable cups. An internal memo outlined that staff should express affirmations like "You're amazing" or "Hello again" to enhance moments of connection with patrons. This initiative aligns with Starbucks' ongoing quest to improve its connection with customers as it faces declining sales.

As part of its revitalization efforts, Starbucks is also planning to streamline its menu, introduce a new algorithm for mobile orders, and implement digital menu boards this year. While comparable sales have seen a slight decrease, the overall direction under Niccol seems poised to transform and reinvigorate the Starbucks brand, with the stock seeing a modest increase of 6.7% over the past year.