Gone are the days when you could get a cup of coffee for $5 and Starbucks is struggling to find ways to attract customers who are upset by the high prices for a cold brew that they will wait 20 minutes for.
Despite being a Gen Z staple, the coffee giant saw a six percent drop in U.S. orders in fiscal Q4 2024, with customers citing price as an issue.
But it’s not just paying $7 to $9 for sugary drinks that’s making customers nervous — it’s the extreme wait times and long lines that have left some who drink plain black coffee waiting excessive amounts of time while baristas quickly whip up more elaborate drinks in front of their own.
Another chink in the armor is the incessant requests for tips that ask customers to fork over more of their hard-earned money before they even receive their drinks.
Now, Starbucks has hired Brian Niccol (who has been applauded for his successful turnaround of Chipotle) as its new CEO to save the dying chain.
These are the reasons why American customers are abandoning the famous chain.
Starbucks has hired Brian Niccol, who has been applauded for his successful turnaround of Chipotle, as its new CEO to save the dying chain.
Despite being a Gen Z staple, the coffee giant saw a six percent drop in U.S. orders in fiscal Q4 2024, with customers citing price as an issue.
Prices
Dan Palmer, 66, of Chicago, used to frequent his local Starbucks to buy breakfast and a drink, including his favorite, the mango-dragon fruit soda, he told the newspaper. The Wall Street Journal.
Now, his drink will set him back more than $6, and he doesn’t consider the drink to be “a bargain in any sense of the word.”
“Prices have gone up a lot,” he told the WSJ.
Starbucks’ revenue loss is linked to rising prices, which the company has attributed to more expensive ingredients and paying workers more.
Add to that the fact that nearly 40 percent of customers are eating out less since the pandemic and rising inflation, and many restaurants and businesses are scrambling to find ways to keep customers motivated.
Starbucks has offered BOGO days and even recently introduced a food and drink combo that costs between $5 and $7 to try to maintain profits, the WSJ reported.
Nothing annoys customers more than quickly placing a drink order on the app, only to be met with a mosh pit of people and their drink nowhere to be seen.
Pattern
Nothing annoys customers more than quickly placing a drink order on the app, only to be met with a mosh pit of people and their drink nowhere to be found.
“A lot of people drink Starbucks not because it’s delicious, but because it’s convenient,” Whitni Mungin, 44, of Chicago, told the WSJ.
About 30 percent of all U.S. orders are placed through the app, which has led to huge crowds around mobile order pickup counters in stores.
“Everybody shows up and all of a sudden we have a mosh pit, and that’s not Starbucks,” former CEO Howard Schultz said on a podcast in June.
Part of his vision for the country while under his leadership was to create a “third place” where customers would want to stay for a while.
But as more and more cafes remodel and remove furniture, Steve Weeks, 68, of Southern California, admits, “You don’t get the same feeling that they want you to stay there as long anymore.”
But to meet the demand for drinks, many stores are removing seats to make room for takeout lines.
Starbucks has also begun rolling out drive-thru stores that don’t even offer a place to sit or use the bathroom, a staple in many big cities.
Additionally, cold drinks offer a variety of add-ons, from cold foam to syrups and mixer options, which increases the time it takes to prepare one for a customer.
According to the WSJ, cold drinks account for about 70 percent of beverage orders in the United States.
The company is implementing new innovations to help speed up the process, such as a cold bar station, to help alleviate some of the issues.
Another problem with the chain is the incessant warning to tip it over.
Suggestions for hints
Brad Pearl of Spokane, Washington, used to visit the chain up to five times a week for more than two decades, but recently switched to a local store after noticing prices were going up.
Another problem with the chain is the incessant warning to tip it over.
“They haven’t even notified him,” he told the WSJ.
Since ditching the pricey chain, he’s saved $150 a month, he told the outlet, and now enjoys an iced latte for 25 cents cheaper.
As for his former hunting ground: “It’s really a luxury.”
(tags to translate)dailymail
