As Brian Niccol approaches his first 100 days as Starbucks CEO, his tenure has included decisions such as scaling back popular discounts like BOGO offers, aimed at restoring Starbucks’ premium pricing strategy and introducing a holiday menu that has received mixed reactions.
These decisions reflect Niccol’s focus on streamlining operations and addressing challenges related to declining foot traffic, inconsistent service, long wait times, and hectic handoffs. However, early reactions from customers to both the reduced promotions and seasonal offerings have raised questions about Niccol’s approach to revitalizing the brand.
In a September message on Starbucks' website, Niccol announced a reduction in discounts and promotions initially introduced to attract customers during inflation. This shift is intended to encourage customers to pay full price for their beverages. Previous promotions had been effective in drawing customers but created operational challenges for baristas.
While Starbucks will continue to promote its seasonal flavors like pumpkin spice, it will do so without heavy discounting during the fall and winter holidays.
This comes as the company is also addressing declining revenue and foot traffic, particularly in the U.S. and China, ahead of its upcoming earnings report in November.
A September analysis in Restaurant Dive notes that Niccol’s past success as CEO of Chipotle does not guarantee similar outcomes at Starbucks, given the company’s more complex challenges. Starbucks must balance its traditional “third place” concept—where customers gather and socialize—with the increasing 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. Ultimately, while Niccol could make impactful changes, the long-term transformation of Starbucks’ culture and brand may be difficult to achieve within his tenure.
According to an October article posted on Delish.com, Starbucks’ scaling back of promotions comes amid consecutive quarters of declining sales, particularly among younger consumers aged 18 to 29.
An article by Country Living posted in early October reported that Starbucks' holiday menu was leaked, with fans expressing disappointment over the absence of certain items. The official holiday menu is set to launch on November 7.