THE ANNA HAYDEN BLOG

While Starbucks remains an industry leader in the world of specialty drink and coffee shops, a concerning dip in performance has led to the company’s realization that a huge change needs happen – before it becomes the Blockbuster to Netflix.

In 2024, Starbucks weaken store traffic let to an overall 2% decrease in global store sales. Some of this decrease can be contributed to consumers trying to be more cost conscious by making coffee at home, etc. Yet, the price increases on Starbucks drinks seems to not be huge factor in their loss of sales as they are on par or even less expensive than alternatives. From my recent personal coffee shop trips, a coffee from a local coffee shop can cost upwards of $9 for a large and my Starbucks order usually runs around $7 or $8. Yet it seems that most people (myself included) would always opt for the local coffee shop where quality of experience and customer service exceed what you would get from a Starbucks.

Starbucks realized that they needed to bring more quality into the overall experience if they want to keep up with competitors. They have implemented a plan to go back to “coffee house roots” by use of ceramic mugs for sit down orders, simplifying the menu, taking off upcharges for substitutions and free refills. Possibly one of the best ways they are trying to bring back quality into the Starbucks experience is having employees write a unique fun or positive saying on to go order cups. While it seems minimal, this little detail makes consumers feel like more effort has been put into their purchase, making it worth the $8.

Starbucks took note of what was going on in the coffee shop industry and what consumers wanted – a more homey and personal experience. As of Q3 2025, Starbucks revenues are now higher than expected and the plan is certainty a success.