The removal of the Oleato line from Starbucks’ menu is a strategic decision made by the company’s new CEO, Brian Niccol, as part of a broader turnaround scheme to simplify menus and go “back to basics.” This decision aligns with Niccol’s strategy to focus on core offerings and eliminate underperforming items. The Oleato line, which was introduced by former CEO Howard Schultz, received largely negative reviews in the US press and had a laxative effect on some customers. Despite this, cafes in China, Italy, and Japan will continue to serve the Oleato drinks.
In terms of financial performance, Starbucks is set to report its fiscal fourth-quarter earnings, and preliminary results show that sales fell for the third consecutive quarter due to weak demand in the US and China. However, Wall Street has high hopes for Niccol’s leadership, including ending the outsized influence of Schultz and refocusing on core offerings.
The Oleato line was first launched in Italy and later brought to stores in Southern California before a nationwide launch in January. However, it seems that customers did not agree with Schultz’s high opinion of the drinks, leading to their eventual removal from domestic menus.
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