Food & Drink
Starbucks Dubbed a ‘Loser’ for Recent Performance
Problems are ‘deep-seated and multi-faceted’
By Rob Smith November 26, 2024
An influential retail industry publication has branded Starbucks as one of its “losers” because of its recent performance.
Restaurant Dive (one of the many Dive verticals) cited an unfocused menu, a brand identity crisis, and political perceptions related to the war in Gaza and unionization efforts as reasons for a 10% drop in foot traffic and a 6% plunge in sales.
“The chain’s problems are deep-seated and multi-faceted,” the publication writes. “The severity of that 10% drop will take time to recover from, and it’s possible the brand isn’t out of the woods yet on the worst of its traffic problems.”
Restaurant Dive also noted, however, that new CEO Brian Niccol — who took over in September after a successful run at Chipotle — has already implemented a series of changes designed to steer the world’s coffee chain in a different direction, including the launch of a marketing program, a plan to increase speed of service, and to bring back the chain’s reputation as a true neighborhood coffee establishment.
As far back as 2000, Harvard Business Review noted that “Starbucks’ creativity set off a chain reaction of innovation in the once-sleepy industry.” It increased demand for premium coffee, supported coffee farmers around the world, and is still pursuing its goal to plant 100 million coffee trees by 2025.
Is Starbucks too big to fail? Probably not. But, as a company that helped put Seattle on a global stage — and one that still prioritizes local philanthropy — the entire city has a stake in its success.
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