Why Starbucks is no longer coffee king according to customers
Years ago, many people would spend hours at Starbucks, not just for the coffee and confectionery beverages but also for the inviting atmosphere that made it an ideal location for dates and meetings. Nowadays, you'd be lucky to find anyone sitting down. There are several reasons behind this betrayal, according to United States customers. According to the WSJ, customers are fed up with rising costs, long wait times, and what some see as the company's poor political decisions.
Customers voice concerns over Starbucks's pricing
This onslaught cost Starbucks a 6% decline in US orders in the quarter ended June 30, the report said. Dan Palmer, a 66-year-old Chicago resident and former Starbucks customer, expressed his dissatisfaction with the company's escalating prices. He noted that each cup now costs over $6 (roughly ₹450), stating, "It's not a deal in any sense of the word." Another customer shared that he stopped going to Starbucks due to high prices and is now saving approximately $150 per month.
Long wait times add to Starbucks's customer dissatisfaction
Palmer's sentiment echoes that of nearly 40% of consumers who are reportedly spending less on takeout due to economic concerns, according to a survey by Revenue Management Solutions. Long wait times are another factor driving customers away from Starbucks. A survey by Technomic Ignite Consumer revealed that over 30% of customers waited up to 15 minutes for their order in 2024, with some waiting as long as half an hour.
Starbucks's attempts to regain customer loyalty
Even Howard Schultz, former CEO of Starbucks, acknowledged the failure in the company's mobile ordering system on the Acquired podcast in June. Starbucks has since tried to smooth out the unevenness by launching several discount offers and promotions. The company is also restructuring its workflow for faster output. However, these efforts are overshadowed by the company's involvement in political controversies that have led to nationwide boycotts from both ends of the political spectrum.
Starbucks' market performance amid challenges
In 2015, Starbucks launched solid red holiday cups in contrast to prior seasonal iterations that had winter or Christmas-related images (such as reindeer and ornaments) but no overtly religious elements. The cup design received a lot of attention on social media, with some calling it another example of the "War on Christmas." There have also been demands for a boycott of Starbucks locations and products since it is alleged that a portion of their profits go to the Israeli military.
Starbucks replaces CEO
Just recently, the company named Brian Niccol as its new CEO in an attempt to revitalize declining sales and reestablish Starbucks as a destination for customers who are willing to pay premium prices. Niccol replaced Laxman Narasimhan, under whose leadership Starbucks experienced a 23.9% decline in share price and a $32 billion market cap loss. Along with slumps in places such as the United States and the Middle East, sales in China fell by 14% last month.
