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Starbucks discontinues olive oil drinks in a push to simplify its menu

DEE-ANN DURBIN
October 30, 2024

Starbucks is discontinuing its Oleato olive-oil infused beverages at most locations, part of an effort to streamline the chain's menu.

The Seattle-based company confirmed the change Wednesday ahead of the release of its fiscal fourth quarter earnings. Later Wednesday, Starbucks' new Chairman and CEO Brian Niccol was scheduled to hold his first conference call with investors since he joined the company last month.

Starbucks said it will no longer offer Oleato drinks beginning in early November at most stores. They will be available at some locations in Italy, Japan and China.

The decision breaks a link to Starbucks' longtime leader Howard Schultz, who came up with the idea for the drinks after visiting an olive oil producer in Sicily. Schultz called the beverage a "transformational idea" when he introduced it in Italy in early 2023. It went on sale in the U.S. earlier this year.

But Schultz stepped down as CEO in March 2023 and left the company's board last fall. Since then, Starbucks' sales have fallen as consumers push back on high prices and employees struggle with the chain's increasingly complex menu.

Niccol, the former chairman and CEO of Chipotle, took over in September. Last week, when Starbucks' released its preliminary fourth-quarter earnings, Niccol said Starbucks needed to simplify its "overly complex menu" and simplify operations for baristas, especially during the morning rush.

Removing Oleato is part of that push, although the company said Wednesday that the decision to take it off the menu was made before Niccol took over as CEO.

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