Brian Niccol, the new CEO of Starbucks, has proposed reducing promotions and discounts, aiming to improve barista workflow and align with a premium pricing strategy. However, there are concerns that higher prices coupled with slower service may alienate customers and hinder loyalty.
In a letter, Niccol highlighted, "People start their day with us, and we need to meet their expectations. This means delivering outstanding drinks and food, on time, every time," emphasizing the importance of customer satisfaction.
The Financial Times pointed out that public sentiment mirrors a common belief that "Starbucks needs faster service, not more complicated drinks," indicating a disconnect between product offerings and customer service efficiency.
With global comparable store sales dropping 3% and a significant 14% decline in sales in China, Starbucks faces financial pressures that threaten its growth strategy, particularly in a market where local competitors like Luckin Coffee are thriving.
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