Joined Jun 2006
L7: Teacher
Forum Thread
What’s Suddenly Going Wrong at Starbucks?Wanted to share an article for your review and your feedback.
May 13, 2024 at
05:55 PM
https://www.qsrmagazine
Wanted to share an article regarding Starbucks because i recall all the chaos regarding Starbucks devaluing its rewards program at Slickdeals forum and on Starbuck's facebook page at the time.
Could this be a lesson learned how not to operate a business plan from back then till today?
Did Starbucks decide correctly with its business model?
Just skim over the article for the key important messages of interest to you and respond whether the old phrase, " I told you so", applied to Starbucks as far back as when they laid rampage on their loyalty reward program. Or, would Starbucks still be in the same situation having never reduced the value of its reward program?
If you were the one in charge during that decision era when reducing the value of your loyalty reward program, would have done it as they did it? Or, not?
Sorry, the article goes on for miles, but grab the key points for any added discussions you may wish to convey?
Wanted to share an article regarding Starbucks because i recall all the chaos regarding Starbucks devaluing its rewards program at Slickdeals forum and on Starbuck's facebook page at the time.
Could this be a lesson learned how not to operate a business plan from back then till today?
Did Starbucks decide correctly with its business model?
Just skim over the article for the key important messages of interest to you and respond whether the old phrase, " I told you so", applied to Starbucks as far back as when they laid rampage on their loyalty reward program. Or, would Starbucks still be in the same situation having never reduced the value of its reward program?
If you were the one in charge during that decision era when reducing the value of your loyalty reward program, would have done it as they did it? Or, not?
Sorry, the article goes on for miles, but grab the key points for any added discussions you may wish to convey?
|
Quote
:
What's Suddenly Going Wrong at Starbucks?One of the most-challenged quarters in recent years will usher in a wave of changes. Starbucks' domestic traffic declined 7 percent in Q2. Starbucks' traffic was healthy as recently as October, and it rode three years of robust demand out of the pandemic. Going back to May 2022, founder and former CEO Howard Schultz described the challenge for Starbucks as "completely half full." Interest was "relentless," driven largely by the surge of digital ordering (mobile order and pay was up 400 percent over five years), yet the brand was "not doing our best," he said. In plain terms, Starbucks had more consumer activity than it could meet with the systems in place pre-pandemic. And in response, it laid out a billion-dollar plan to capture that shift in consumer behavior, everything from stripping complexity out of the beverage-making process (thanks to the cold-drink rise) to building more drive-thrus to lifting employee pay. "Simply said, we do not, today, have the adequate capacity to meet the growing demand for Starbucks coffees," Schultz said at the time. |
About the OP
3 Comments
Your comment cannot be blank.
Sign up for a Slickdeals account to remove this ad.
I believe Starbucks performed well in the past and may need to become more careful with its decisions as time passes forward.
What do you think?