"From a business standpoint, sales numbers were trending down sparking a 17% crash in share prices in a one-week period. It wasn't just that though. With customers complaining about long wait times and rising prices, their brand was taking a big hit as well. According to Reptrack, which has been tracking brand reputations for over two decades, Starbucks' reputation fell nearly 15 points in a three-year period between 2021 and 2024."
"The new Starbucks CEO made some big changes last year, which are starting to pay dividends. For the first time in eight quarters, Starbucks reported comparable transaction growth in America. Comparable store sales increased 4% domestically, 5% internationally, and 7% in China. The numbers are just rewards for a focused strategy that promised to strip away distractions and focus on their core strengths - serving good coffee and building strong connections across the counter with their customers."
Brian Niccol took over as Starbucks CEO amid declining sales, a 17% one-week share crash, and a near 15-point fall in brand reputation from 2021 to 2024. Niccol implemented a revival plan titled "Back To Starbucks" that prioritized the in-store experience and core coffee offerings. The strategy included phasing out mobile order and pick-up stores and shifting marketing from transactional discounts to the brand story. Early results showed the first comparable transaction growth in America in eight quarters and comparable store sales increases of 4% domestically, 5% internationally, and 7% in China.
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