Starbucks’ CEO Reportedly Axing Many Promotions and Discounts

Starbucks is pouring hot coffee on some of its discounts and promotions. In September, former Chipotle executive Brian Niccol took Starbucks’ chief executive officer position and has apparently been making some moves to get the world’s largest coffee retailer back on track.

Over the past year, Starbucks saw business drop, particularly in the U.S. and China. The company reduced its sales expectations twice and fired the previous CEO, Laxman Narasimhan.

Starbucks stores saw less customer traffic and more complaints of high prices and long wait times. While unusual for Starbucks, the coffee chain responded with discounts and promotions to lure people back in. Buy one, get one free deals, 50% off discounts, and even food and coffee bundles have been rolled out since the beginning of 2024.

The promotions did bump same-store sales up slightly for the quarter ended in June, but the figure was still lower than the previous year’s reporting period. Company executives were happy the numbers improved but noted it still was not enough to turn the company around.

Now, it appears, the new CEO is reportedly axing many of those promotions and discounts. With Niccol at the helm, Starbucks is going back to its roots, offering premium coffee and superior customer service.

As reported by the Wall Street Journal, Starbucks said in a strategy update for store leaders in early October that it “isn’t planning to run broad offers during the holiday season, and instead aims to promote seasonal drinks through advertising.”

According to Sara Trilling, president of Starbucks North America, the chain reduced promotions to allow baristas more time to provide prompt service and prepare orders with precision.

Starbucks Going Back to Its Beginnings

Niccol wants Starbucks to restore the community coffeehouse experience. There will likely be some revamping of stores to create a place where people want to stay and hang out, with more inviting seating and better layouts to distinguish between “to-go” and “for-here” orders.

“There’s a shared sense that we have drifted from our core,” said Niccol in September, per ABC News. “We have an opportunity to make the store experience better for our partners and, in turn, for our customers.”

In addition, Niccol is promoting the Starbucks “story.” He feels it’s important to remind partners, employees, and customers about the experience and reputation Starbucks has built since its founding.

“Together, we will get back to what makes Starbucks, Starbucks,” noted Niccol in a company statement.