Oct 30 (Reuters) - Starbucks CEO Brian Niccol

on Wednesday told investors that he plans to overhaul Starbucks

U.S. locations, adding more comfortable seating, ceramic mugs

and a coffee-condiment bar, with customer wait times of less

than four minutes.

Faced with falling demand for its pricey beverages in

the key U.S. and China markets as well as a slide in its share

price, Starbucks' ( SBUX ) investors are counting on the

new CEO

to steer the company back to growth.

The company last week

suspended its forecast

for its 2025 fiscal year.

"Our financial results were very disappointing, and it

is clear we need to fundamentally change our strategy to win

back customers and return to growth," Niccol said.

The CEO said he wanted to make it "easier for our

customers to get a cup of coffee," and that the company would

aim to reduce wait times to less than four minutes. To help with

that, and to make prices clear, Niccol also said the company

would be simplifying its menu.

Niccol said staffing levels might increase, addressing a

complaint that has often been voiced by baristas and by

Starbucks Workers United, which is seeking to unionize Starbucks

workers. "I want to make sure that the teams are staffed to win

every transaction," he said.

Investors are hoping that Niccol, an industry veteran

and former Chipotle Mexican Grill head, will simplify

the company's leadership and operating structure, and

reinvigorate the coffee-house culture at Starbucks' ( SBUX ) U.S. stores.

Niccol said ceramic mugs would be offered to customers

who are staying in the café, and that actions would be taken

over the coming months to separate pick-up orders from sit-down

orders. He said "common sense guardrails" would be placed on

mobile ordering.

Shares of the company have risen about 26% since Niccol

replaced Laxman Narasimhan as CEO in a surprise announcement in

August. They were little changed in extended trading on

Wednesday.

Starbucks posted a 7% drop in global comparable sales

for the fourth quarter on Wednesday, after reporting preliminary

results for the quarter ended Sept. 29 last week.

Comparable transactions, which reflect traffic at its

stores, fell for the third straight quarter in North America.

The Seattle-based company's strategy to drive demand through

promotions and improved loyalty program offers has fallen flat

in the face of muted spending from cost-conscious consumers.

Niccol acknowledged on Wednesday that the company had focused

marketing too narrowly on rewards members.

Growth in its loyalty program was tepid in the fourth

quarter, with 90-day active members in the U.S. remaining flat

sequentially. That compares with a 3% sequential rise reported

in the third quarter.

Starbucks is also facing an uphill battle in China,

where it is dealing with a choppy macroeconomic recovery and

stiff competition from local brands.

Comparable sales in China, the company's second-largest

market after the U.S., declined for three straight quarters,

falling 14% in the fourth quarter.

International comparable sales fell 9% in the fourth

quarter, wider than a 6.5% drop expected by analysts, as per

data compiled by LSEG.

The company's net income fell to $909.3 million, or 80 cents

per share, from $1.22 billion, or $1.06 per share, a year

earlier in the fourth quarter ended Sept 29.

Some menu simplifications are coming soon. A company

spokesperson on Wednesday confirmed the chain will on Nov. 7 be

removing from the menu its olive-oil-infused drinks, which were

backed by former Starbucks CEO Howard Schultz, though the

decision was made before Niccol became CEO.

(Reporting by Juveria Tabassum and Waylon Cunningham; Editing

by Anil D'Silva)