The company said global sales tumbled by 7% between July and September. The downturn was more dramatic in China, where sales fell 14% for the same period, as the economy there falters.
“Despite our heightened investments, we were unable to change the trajectory of our traffic decline,” said Rachel Ruggeri, Starbucks’ chief financial officer.
To improve its slowing sales, Mr Nichol pledged to “get back to Starbucks”.
“We will simplify our overly complex menu, fix our pricing architecture, and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.
He added: “We need to refine mobile order and pay so it doesn’t overwhelm the café experience.”
Randeep Somel, fund manager at financial services firm L&G, said a cheaper and less complicated menu could help speed up service.
“At peak times, the queues are just too large so if you simplify the menu it might help customer throughput,” he told BBC Radio 4’s Today Programme.