Starbucks CEO says the coffee chain won’t lose its cash-strapped consumers because it’s on its way to being a ‘world-class customer service’ company

As inflation continues to simmer and economic uncertainty rattles consumers , Starbucks CEO Brian Niccol says he has the solution to ensuring the coffee chain doesn’t suffer from customers pulling back on their $6 or $7 lattes.

Niccol said during the Fast Company Innovation Festival last year he does not believe a rocky economic landscape will offset Starbucks’ gains because of his company’s “commitment to craft and quality” and “great customer experience.” The Starbucks CEO is nearing the two-year mark of his tenure helming the coffee giant and the anniversary of his “ Back to Starbucks ” plan meant to return the company to its roots as a cozy “third space” where customers can leisurely sip their beverages.

At the core of Niccol’s vision is not just rebuilding a desire among customers to linger in stores longer, but to build connections with baristas through a series of personal touches like hand-written notes scribbled on coffee cups.

His vision also includes leaning on automation behind the counter and a pared-down menu to give baristas more face time with patrons.

“When I ask people, name me a great customer service company, I usually get a blank stare,” Niccol said at the time.

“That tells me, right off the bat, there’s a huge opportunity to be the defining customer-service company.” “There is tremendous value in being a world-class, customer-service company combined with great craft, great quality food,” he added.

“When you look at putting those two things together for the price that we will have to charge for it, I think it will turn out to be invaluable.” Returning to a ‘third space’ Nearly two years into the “Back to Starbucks” experiment, the company has seen signs of success .

Starbucks reported in July a 7.9% increase in global comparable sales year-over-year and a 3.5% year-over-year increase in the average ticket, indicating customers don’t mind spending a little more.

Net revenues of $9.3 billion decreased 1%, but exceeded expectations.

The company’s stock is up nearly 24% year-to-date.

“Taken together, our brand flywheel is working,” Niccol told investors last month.

“We’re creating experiences people are excited about, turning engagement into rituals and deepening customer connection that fuels long-term growth.” The coffee chain has continued to lean into customer service.

In April, Starbucks announced a performance-based bonus for baristas, offering up to $1,200 annually, or $300 per quarter, for employees that exceed sale and customer service targets.

But Niccol has long since had confidence in his plan, saying one year into the effort the turnaround was “ahead of schedule.” He cited internal data last year indicating customers were taking note of improved speed, hospitality, and order accuracy.