Starbucks beat expectations last quarter. It credits the humble handwritten note

Starbucks’s new CEO, Brian Niccol, made a bet last September that the company could draw customers back into its stores by reintroducing personal touches you might see at smaller, third-place sort of coffee shops, like handwritten names on to-go cups.

Here we are about four months later, and Starbucks has beaten Wall Street expectations, announcing $9.4 billion in revenue for the fourth quarter of last year during its earnings call Tuesday. Niccol attributed the chain’s performance to “getting Back to Starbucks and those things that have always set us apart.” (Though it’s worth noting that the company’s sales are still down year over year.)

Starbucks developed a back-to-basics approach to reintroduce itself to consumers. Changes include a simplified menu, a new no-loitering policy, an expanded refill policy, ceramic mugs for in-café sipping, and the return of handwritten notes on to-go cups “to better connect with customers and elevate the café experience for those who choose to stay and work,” Niccol said.

The strategy comes after the chain experienced falling sales at its struggling coffee shops due to factors like rising prices and longer wait times. Niccol, a former Chipotle CEO, wrote in a letter after assuming the top post at Starbucks that its stores “have always been more than a place to get a drink,” but admitted that the company hasn’t always delivered on that experience and that telling its story would be part of its comeback.

Bringing back handwritten notes on coffee cups is the focus of a new ad spot launched last weekend. Set to the 2008 hit “That’s Not My Name” by the Ting Tings, it shows baristas putting pen to coffee cup to write out messages like “Let’s goooo!” and “Shine on.” The closing message is “Your pick-me-up is ready,” with “pick-me-up” styled to look like it’s written out by hand. Ad agency Anomaly developed the spot, which received mostly positive reactions online, even among people who said they didn’t like Starbucks coffee.

At least when it comes to ecommerce, a study published in the Journal of Interactive Marketing in 2022 found that handwritten thank-you notes have the potential to double future sales.

“Despite the technological advances in online retailing, the human touch continues to be essential to relationships between retailers and customers,” the study’s authors wrote.

Improving its app is another step Starbucks says it’s taking as part of its comeback, but a simple analog solution could also prove useful. Might what works for online retailers prove equally successful for selling Iced Brown Sugar Oatmilk Shaken Espressos? Starbucks certainly hopes so.