Why Is Starbucks Removing Oleato Drinks from U.S. and Canada Menus?

November 7, 2024

Starbucks has announced plans to remove its “Oleato” drinks from menus in the United States and Canada by early November as part of a broader strategy to simplify its offerings and enhance customer experience. The olive-oil-infused beverages, introduced last year, aimed to diversify Starbucks’ lineup but have failed to counteract declining sales, prompting the company to rethink its approach.

Moving Towards Simplicity

CEO Brian Niccol, who recently took the helm at Starbucks, has been vocal about his mission to streamline the company’s menu and refocus on core coffee offerings. The “Oleato” line, which included a latte infused with extra virgin olive oil and a toffee nut iced shaken espresso with golden foam, is one of the first casualties of this new strategy. Niccol believes that reducing menu complexity will help streamline operations and enhance both staff efficiency and customer satisfaction.

Aligning Organizational Changes

In addition to cutting down on intricate menu items, Starbucks is also implementing broader organizational changes. Starting in January, the company will enforce a hybrid work policy requiring employees to be in the office three days a week. These moves are part of a comprehensive strategy not only to simplify Starbucks’ business model but also to create a more focused and effective work environment.

Foundation and Future

It’s worth noting that the decision to phase out the Oleato drinks was made prior to Niccol officially becoming CEO. Nevertheless, it aligns perfectly with his vision for the company. Niccol has expressed confidence that addressing Starbucks’ current challenges is entirely feasible. On the company’s website, he stated that these challenges are “very fixable,” highlighting his commitment to revitalizing the brand.

Looking Ahead

Starbucks has decided to remove its “Oleato” line of drinks from menus in the United States and Canada by early November. This move is part of a larger strategy aimed at simplifying the company’s offerings and enhancing the overall customer experience. Introduced last year, the Oleato beverages, which are infused with olive oil, were intended to diversify Starbucks’ menu. However, these drinks have not succeeded in boosting declining sales, prompting the company to reevaluate its approach.

In an effort to streamline its menu and focus on core products, Starbucks believes that discontinuing the Oleato drinks will help better align with customer preferences. By removing these specialty items, the company hopes to make the ordering process more straightforward for customers and allow baristas to concentrate on delivering high-quality, popular beverages that resonate with their audience. Ultimately, this change is part of a broader initiative to refine Starbucks’ offerings and ensure the brand remains competitive in the ever-evolving coffee market.

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