Promotional Changes
is reducing promotional offers in its mobile app, aiming for customers to pay full price for coffees and teas, as part of CEO 's strategy to reposition the brand as premium.
The company plans fewer promotions during the holiday season, focusing on advertising seasonal drinks instead, marking a shift from previous deep discounts.
Strategic Reorientation
Niccol, who took over in September, aims to turn Starbucks back into a community coffeehouse, emphasizing a premium experience and reducing employee strain from high promotional activity.
Addressing a decline in sales and a drop in younger and infrequent customers, Niccol's strategy includes enhancing the in-store experience and distinguishing between "to-go" and "for-here" service.