Starbucks is discontinuing its divisive Oleato beverage lineup, the company confirmed with Nation’s Restaurant News on Tuesday following initial reporting by Bloomberg.
The drinks will be phased out in early November as part of an overall menu simplification strategy that began before CEO Brian Niccol took the helm but aligns with his far-reaching strategy to uncomplicate Starbucks operations.
The olive oil-infused espresso beverages had customers divided on their unique taste and texture when they were invented by former CEO Howard Schultz and introduced to U.S. menus in spring 2023. The Oleato was rumored to cause gastrointestinal issues for some guests, according to posts from social media websites like X and Reddit last year.
Although Starbucks clarified that the decision to discontinue the Oleato was made before Niccol became CEO, it continues the new chief executive’s trend of making large-scale changes and simplifying complexities early on in his tenure. Other recent changes Starbucks has made that largely undo a lot of what Niccol’s predecessors tried include phasing out Princi baked goods and backing off its short-lived discounting strategy.
Niccol was named CEO in August during a time of turbulence for the Seattle, Washington-based coffee chain as Starbucks grappled with multiple quarters of declining sales, while many customers choose to either save money by making coffee at home or frequent several of Starbucks’ newfound drive-thru-focused competitors.
Other changes coming soon to Starbucks include a further menu simplification that allows the company to re-focus on its coffee quality and classic beverages, improving store experience at peak times for both employees and customers, and re-establishing Starbucks as a community meeting spot and not just a place for people to wait in line to pick up their mobile orders.
Starbucks executives will discuss these changes, along with the company’s disappointing Q4 results — including a 10% traffic decline — during this week’s earnings call.
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