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Everyone loves Starbucks, don't they? Its cafes certainly seem to be everywhere you look. But behind that familiar green siren are stores that are struggling with declining sales, overworked employees, and a company that's badly in need of a fresh start.

Recently, Starbucks stock was down about 1.5%, and the company faced a walkout of more than 1,000 employees. There were many excuses and a sense of panic. Traffic levels, outside of the pandemic, have dropped to levels typically seen in recessions. Starbucks seemed to be experimenting wildly, throwing "spaghetti against the wall" to see what would stick. Drink orders have become more complicated, and wait times have become longer, creating frustration among customers.

At one point, everything seemed fine under a different CEO, but then things began to change rapidly. There were moments of confusion, with many wondering what had happened. Now, a new CEO is attempting to turn the company around by bringing Starbucks back to its roots—if it’s not too late.

The Starbucks story began in the early 1980s with Howard Schultz, who worked for a small Seattle company selling whole-bean and ground coffee. Back then, coffee in America was largely viewed as fuel. Schultz wanted to transform it into an elevated European-style experience. He envisioned Starbucks as a "third place"—a space outside of home and work where people could relax.

The idea took off. Today, Starbucks is the second-largest restaurant chain in the world, behind only McDonald’s, with over 40,000 locations worldwide. Starbucks excelled at "decommoditizing" coffee, turning it into an aspirational beverage and marketing it as an everyday luxury. However, over time, the brand became more ubiquitous and less luxurious.

The cafe experience has also changed. Customers now favor iced coffees and complex drinks like frappuccinos and lemonade refreshers over traditional hot coffee. Starbucks, originally built around hot beverages, now sells mostly cold drinks in the U.S. This shift has created operational challenges, with mobile ordering adding another layer of complexity. Customization has surged, making baristas' jobs more stressful. Many employees feel they are not set up for success and are burning out.

These challenges fueled a unionization movement that began in Buffalo, New York, in 2021. Employees there became the first baristas to vote in favor of joining a union, challenging Starbucks’ image as a worker-friendly employer. Many workers complained about short staffing, broken equipment, and being unable to connect with customers due to stress and operational inefficiencies.

In response, Howard Schultz, who had stepped down as CEO in 2017, returned to the company. Schultz took the unionization effort personally, seeing it as an attack on the brand he had built. Over the following year, Starbucks closed several unionized stores, and by March 2023, when Schultz testified before a Senate committee, workers accused the company of union-busting. Despite Schultz’s denials, tensions persisted. Eventually, Schultz handed over leadership to Laxman Narasimhan, a former Pepsi executive. While negotiations reopened earlier this year, there is still no contract in place, though some workers are optimistic about progress.

Meanwhile, other challenges have emerged. In 2024, dueling boycotts erupted over the war in Gaza after the Starbucks union shared posts expressing solidarity with Palestinians, though the company maintained it had no official stance on the conflict. In China, one of Starbucks' largest markets, the company faced stiff competition from Luckin Coffee, which uses automation to reduce costs and offer lower prices.

In August, Starbucks announced yet another leadership change, hiring Brian Niccol, its third CEO in three years. Niccol, known for his success at Chipotle, has extensive experience in the restaurant industry. Under his leadership, Chipotle recovered from food safety scandals and strengthened its brand. Now, Starbucks hopes Niccol can guide it through its challenges, deciding whether the company will focus on being a to-go machine or return to its roots as a neighborhood coffeehouse.

Niccol has emphasized bringing Starbucks back to what made it special: creating a welcoming coffeehouse experience with quality, handcrafted coffee. However, the latest sales results show that significant challenges remain. While Niccol's track record at Chipotle offers hope, turning Starbucks around will likely take time.