The days of getting a cup of coffee for $5 are long gone, and Starbucks is struggling with how to entice customers to pay a high-priced cup of coffee that they have to wait 20 minutes for.
While the coffee giant is a stalwart of Gen Z, the company saw a six percent drop in U.S. orders in the fourth fiscal quarter of 2024. Customers cite price as a concern.
But it’s not just the $7 to $9 price tag for sugary drinks that’s driving customers over the edge, but the extremely long wait times and long lines that leave some people craving a simple black coffee waiting endlessly while baristas quickly prepare more elaborate drinks in front of them.
Another problem is the constant demand for tips, with customers having to pay more and more of their hard-earned money before they even get their drink.
Starbucks has now hired Brian Niccol as its new CEO, who has been widely praised for his successful turnaround of Chipotle. He must save the chain.
These are the reasons why American customers are avoiding the famous chain.
Starbucks has hired Brian Niccol — who was praised for his successful turnaround at Chipotle — as its new CEO to save the dying chain
Despite being a staple for Gen Z, the coffee giant saw a six percent drop in U.S. orders in the fourth fiscal quarter of 2024, with customers citing price as an issue
Prices
Dan Palmer, 66, of Chicago, used to frequent his local Starbucks to grab breakfast and a drink, like his favorite, the mango dragonfruit refresher, he told the Wall Street Journal.
Now he has to pay more than $6 for his drink, and he doesn’t think the drink is a bargain in any sense of the word.
“Prices have gone up significantly,” he told the WSJ.
Starbucks’ loss of sales is due to rising prices, which the company says is the result of more expensive ingredients and higher wages for employees.
When you add to that the fact that nearly 40 percent of customers are dining out less often since the pandemic and inflation is rising, many restaurants and businesses are scrambling to find ways to keep their customers interested.
Starbucks offers BOGO days and recently even introduced a food and drink combo that costs between $5 and $7 to keep profits flowing, WSJ reported.
Nothing makes customers angrier than quickly ordering a drink through the app, only to end up in a mosh pit of people with your drink nowhere to be seen.
Lines
Nothing makes customers angrier than quickly ordering a drink through the app, only to end up in a mosh pit of people with your drink nowhere to be seen.
“A lot of people drink Starbucks not because it tastes good, but because it’s convenient,” Whitni Mungin, 44, of Chicago, told the WSJ.
About 30 percent of all orders in the US are placed through the app, which has led to heavy traffic at mobile pickup counters in stores.
“Everybody shows up and all of a sudden there’s a mosh pit, and that’s not Starbucks,” former CEO Howard Schultz said in a podcast in June.
Part of his vision for the country when he was in power was to create a “third place” where customers would be happy to stay for a while.
But as more cafes are remodeled and furniture is removed, Steve Weeks, 68, of Southern California, admits, “You don’t get the feeling that they want you to stay there that long anymore.”
To meet the demand for drinks, many stores are removing seating to make room for takeaway queues.
Starbucks has also started opening curbside pickup locations where you can pick up your order. These locations don’t even offer a seat or a bathroom, unlike many major cities.
In addition, there are all sorts of extra options available for cold drinks, from cold foam to syrups and other additions, which makes it take longer to prepare one for the customer.
According to WSJ, cold drinks account for about 70 percent of all drink orders in the US.
The company is introducing new innovations to speed up the process, such as a cold bar station, to alleviate some of the problems.
Another problem he has with the chain is the constant urge to tilt
Tip instructions
Brad Pearl of Spokane, Washington, visited the chain up to five times a week for more than two decades, but recently switched to a local store after noticing rising prices.
Another problem he has with the chain is the constant encouragement to tip.
“You haven’t even been subpoenaed yet,” he told WSJ.
Since ditching the overpriced chain, he’s saved $150 a month, he told the store, and he now enjoys an iced caffè latte for 25 cents less.
As for his former hunting ground: “That’s a real luxury.”