Starbucks is making changes to its promotional offers in the Miami area, as reported by the Wall Street Journal and confirmed by CNN. The coffee chain, under the leadership of new CEO Brian Niccol, is reducing the number of discounts and deals available through its mobile app. This shift is part of Niccol’s strategy to position Starbucks as a premium brand and ease the workload on employees who can become overwhelmed during high promotion periods.
Previously, Starbucks had been offering promotions such as extra loyalty points on Tuesdays and discounts on multiple drink purchases on Saturdays. These promotions were a departure from the deeper discounts, such as “buy one, get one free” and 50% off offers, that were prevalent earlier in the year. The company also plans to dial back on broad holiday season offers and focus on promoting seasonal drinks through advertising.
The decision to scale back promotions comes as Starbucks looks to address declining sales over the past two quarters. Bank of America analysts note that infrequent afternoon customers and individuals in the 18 to 29 age group have been moving away from Starbucks. Niccol aims to refocus Starbucks as a traditional coffee shop experience, emphasizing in-store comfort, design improvements, and a clear distinction between “to-go” and “for-here” service.
In a letter to employees and customers, Niccol expressed a desire to return Starbucks to its roots as a “community coffeehouse” with a cozy atmosphere that captures the essence of the brand. The goal is to enhance the in-store experience and create spaces that embody the unique sights, smells, and sounds that define Starbucks.
By reducing promotions and focusing on improving the overall customer experience, Starbucks hopes to reinvigorate its brand and attract customers back to its stores. Niccol’s leadership marks a significant shift in strategy for the company, as it seeks to strike a balance between maintaining its premium status and engaging customers in a more traditional coffeehouse setting.
