Unhealthy drinks among top reasons for declining Starbucks sales
HEADLINE HEALTH | What in the heck is a “vente”?
We never got past this question.
Now the once-trendy Starbucks is fading fast.
The globalist coffee chain will close hundreds of failed locations in the months ahead.
Details below from CNN …
Can Starbucks be fixed?
(Danielle Wiener-Bronner, CNN) Starbucks has become known for three things: drinks no one wants, too many stores, not enough innovation.
Starbucks’ new CEO Kevin Johnson identified these as the main problems bugging US Starbucks. He has a plan to fix them.
[Headline Health has another approach: Dunkin Donuts, where coffee and pastries are served without a cultural, political, or religious agenda.]
“Our recent performance does not reflect the potential of our exceptional brand and is not acceptable,” Johnson said during the Oppenheimer Consumer Conference on Tuesday. “This next chapter starts to think about growth at scale.”
Johnson thinks that in the United States, the coffee chain is being dragged down by out-of-date beverages and some underperforming stores. He expects sales to grow just 1% next quarter. The stock fell 9% between Wednesday and Thursday.
But mobile payments and an improved digital strategy offer a huge opportunity for growth, Johnson believes. And Starbucks can get even bigger.
One of Starbucks’ problems is that customers have turned on Frappuccinos.
In 2015, Frappuccino sales were up 17% compared to the previous year. That figure fell to 5% in 2016, 4% in 2017 and is down 3% so far this year.
Starbucks said Frappuccino sales are down because people have become more health conscious.
To combat declining Frappe sales, Starbucks is offering lower-sugar cold beverages like iced tea and iced cold foam cappuccinos. For the first time this year, the company expanded its Happy Hour beyond just Frappuccinos and made the discounts available only to customers who register online or use the Starbucks app. Read the full story at CNN.