Starbucks' new CEO Brian Niccol approaches his first 100 days at the helm, with scrutiny on his initial policies and actions coming at the company’s fourth-quarter earnings call at the end of October.
Starbucks announced it will release its fourth-quarter and full fiscal year 2024 financial results on October 30, 2024, followed by a conference call at 2:00 p.m. Pacific Time.
According to a September 10, 2024 message published on Starbucks' website, new CEO, Brian
Niccol has begun scaling back on the discounts and promotions introduced to attract customers during inflation, signaling a shift to encourage customers to pay full price for their beverages, according to a Starbucks message. Previously, Starbucks had implemented several promotions, including buy-one-get-one-free deals and discounted breakfast pairings, which were successful in bringing customers back but overwhelmed baristas with increased workloads.
The scaling back of Starbucks promotions comes after consecutive quarters of declining sales, particularly among infrequent customers and younger consumers aged 18 to 29.
Niccol, formerly of Chipotle, believes that cutting back on these discounts will streamline operations. Despite this, Starbucks will still promote its seasonal flavors, like pumpkin spice, but without heavy discounting during fall and winter holidays. The company is also facing declining revenue and foot traffic, particularly in the U.S. and China, ahead of its next earnings report in November.
Niccol’s success as CEO of Chipotle will not guarentee with Starbucks as the company issues of brand identity and operational difficulties are more complex issues, Restaurant Dive reported. Key tensions arise from balancing its traditional “third place” value—where customers relax and socialize—with the growing demand for digital convenience and speed. Some experts believe Niccol may focus on simplifying operations and emphasizing coffee, but the company faces fierce competition, especially internationally.
According to an October 9 Country Living article, people are not happy about one the first major "rites of passage" for the new Starbucks leader. The holiday menu was leaked online, revealing new and returning items, but fans have already been expressing disappointment over missing favorites, as Starbucks prepares for its official holiday menu launch on November 7.