If you’re a regular at Starbucks, get ready for a shift in your coffee experience—your favorite drinks might just come with a heftier price tag. According to a recent report from the Wall Street Journal, the iconic coffee chain is pulling back on promotional offers via its mobile app, aiming to encourage customers to pay full price.
This strategy comes straight from the mind of the new CEO, Brian Niccol, who is making waves with his first major moves since stepping into the role. After facing two consecutive quarters of declining sales, Niccol is looking to alleviate the pressure on Starbucks employees, many of whom have voiced concerns about their workload amid a backdrop of ongoing unionization efforts and calls for better pay and staffing.
Last month, the promotions offered perks like extra loyalty points on Tuesdays and special deals on Saturdays. However, these are a far cry from the buy-one-get-one-free deals and substantial discounts customers enjoyed in previous months. In a letter to employees, Niccol expressed a desire to steer Starbucks back to its roots as a “community coffeehouse,” emphasizing the importance of enhancing the store experience for both employees and customers alike.
“There’s a shared sense that we have drifted from our core,” he wrote, hinting at a more nostalgic, perhaps less discount-driven approach to the Starbucks experience.
As these changes unfold, customers may need to adjust their expectations—and their budgets. While the return to a more authentic coffeehouse vibe might appeal to some, others may feel the pinch in their wallets.
In the end, this strategic shift raises a crucial question: will the promise of a better in-store experience be enough to justify the increase in price? Only time will tell how this balance will play out in the cups of loyal Starbucks drinkers everywhere.