Brace yourselves, Starbucks fiends — the company is putting BOGO deals on the back burner and restoring full prices to menu boards.
The Seattle-based multinational chain announced it would dial back its frequent discounts and promotions, according to a report from The Wall Street Journal. The move is part of an overhaul happening under the company’s newly seated CEO, Brian Niccol, who joined Starbucks in September.
“We will be the community coffeehouse known for great coffee,” Niccol told employees at a September internal meeting.
A spokesperson for the roastery and coffeehouse company confirmed the WSJ report in an email to TODAY.com and declined to comment further.
Over the last year, restaurant chains and consumers have felt the impact of inflation and hikes in menu prices. To keep up on the sales side, companies including Starbucks have relied on discounts to attract customers who’ve cut back on dining out in an effort to hold onto their cash.
Starbucks’ approach included deal rollouts through its app, a rewards program and regular promotions. Throughout the summer, the company offered 50% off cold drinks and in September, it introduced weekly free fall drink promotions with the purchase of another item. The promotions proved challenging to keep up with, creating unpredictable spikes in customer turnout, which caused staffing challenges. According to The Wall Street Journal, store managers and baristas reported that promotions made it difficult to deliver precise and timely orders.
Now, Starbucks will pivot its focus, hoping to entice customers with the promise of higher quality food, beverages and service.
Starbucks North America President Sara Trilling echoed sentiments that the company wanted to refocus its efforts on good and dependable service, noting that leadership was aware that “the broad Starbucks rewards offers that we’ve been doing previously had been hard.”
