Steph Kronos (L), a pro-union activist, joins with Starbucks workers, on strike outside a Starbucks … [+]
No two ways about it, Starbucks is a great brand. However, like many other excellent brands, it has had landing -its raising over the years, but it has been mostly discounts lately.
In 2024, Starbucks fell several levels in the highest global ranking of INTERBRAND brands, from 48 to 2023 to 52. However, it was immersed from number 15 to number 45 in brand finance ratio for the most valuable global brands, The biggest decline of any brand among its first 100.
The end -of -year results of Starbucks 2024 did not help. While reporting essentially flat revenue at $ 36.2 billion, comparable global sales of stores fell by 2% due to the weakening of store patronage. In the first quarter of 2025, the decline in comparable store sales took on 4%, with comparable transactions below 6%, and in the US, the comparable volume of transactions was even more, below 8%.
Net/net: Starbucks are losing as the place where people want to hang or grab a cup of coffee for their caffeine arrangement. The good will of the lost clients so that they do not feel the attraction to the starbucks they once did.
While indicating to some extent the company’s financial reporting, consumers’ feelings to the Starbucks brand are best measured in its brand reputation and this is tanking.
Starbucks reputation falls
Stephen Hahn, Executive Vice President of Reptrak, says the Starbucks reputation went from a 71.5 point in 2021 to a 100-point index in a 57.7 tangible points this January in an exclusive relationship with me. Starbucks did not return my request for comment.
Starbucks 2021 reputation to January 2025
Reptrak has measured brand reputation for more than 20 years in seven dimensions or what the leaders of the reputation call: products/services, innovation, workplace, behavior, citizenship, leadership and performance.
“Starbucks are strong in two things: excellent products and services and financial performance, but that’s just two of the seven drivers,” he explained. It is important to note that the perception of strong financial performance is among consumers, not financial analysts, so people usually think that Starbucks makes a lot of money.
So the biggest question can be, how is Starbucks using all the money it makes to benefit its employees and customers, in addition to simply give employees a job with benefits and customers something delicious drinks.
“Starbucks is still a strong retail brand, based on brand and intersbrand finances reports. But even a strong retail brand does not translate into a strong corporate reputation. This may be the problem that Starbucks is not solving and They seem to be where many of his challenges live, ”Hahn observed.
Restoring goodwill
In other words, Starbucks have lost a lot of good public will in recent years as measured in its corporate reputation, which is based on a national representative sample among those who somehow or well known to Starbucks, not just those of aware of the brand. The general reptrak has collected estimates from more than 2,300 “informed” individuals of Starbucks since January 2020.
For her loan last September, Starbucks brought a new CEO, Brian Niccol, to return the company after performance less than the yjore under the previous CEO Laxman Narasimhan during his two years in the post.
Upon his arrival, Niccol introduced a turning strategy to Starbucks with four words. The new strategy depends on customers’ care, getting “the right breakfast”, restoring Starbuck’s as a community coffee and telling its story better.
She began her “Back to Starbucks” strategy for the public with a nationwide promotion the day after Super Bowl on Sunday offering a free coffee for members of his Starbucks loyalty program. “Monday Starbucks” was the company’s most popular offer at 50 + history of the year, according to the restaurant business. And more people were enrolled in his loyalty program that day than the day before.
However, Hahn noticed, “to finish a twist, Starbucks can not only rely on excellent marketing, good quality products or coffee experience. It should find a new angle that allows people to better understand the whole of Starbucks and what stands for. “
To do this, Starbucks must address his lack of reputation in product value and innovation, leadership, behavior and workplace.
Product value and lack of innovation
The Driver of Products/Services of Reptrak includes measures of quality and value of goods and services. Starbucks rank quite high in quality, but on the side of the value of the equation, it receives its worst evaluation in general.
“You can’t earn without a proposal of very strong value for your business,” Hahn observed. “This does not mean you have to lower your prices. It means you have to tell a convincing story about value. I’m not sure Starbucks has earned it yet.”
On the side of the product, it is quite weak in new products recently. Olive oil infected coffee, first introduced in February 2023, was a big miss. However, its formation of new products can help to overcome that shortage. The newly introduced cortado of the expression is more in the brand and its range of new pistachio drinks has a curiosity attraction.
However, Hahn emphasizes the need for Starbucks to introduce “the main new innovation of products”, such as the Latte spice of the pumpkin or Frapuccino, not just special offers or limited time promotions.
The challenge of leadership
Leadership, especially having a strong and attractive leader, is also a challenge for Starbucks. “We’re not going through judgments here, but the last result of having a strong and attractive leader, namely Brian Niccol, is not great. There is a lot of room for improvement,” Hahn said.
Of course, there is a hanging on the failed leadership of the former Cesso Narasimhan. And it is difficult for Niccol to get into the shoes of the legendary Howard Schultz, who had to return twice to help the company went out, recently before taking Narasimhan by hand as his successor. Schultz is now the chairman of Starbucks Emeritus and has resigned from the board, though he remains the company’s only largest shareholder.
Starbucks coffee seemed to flow into the Schultz veins. For Niccols to exceed the short -lived period of his predecessor, he must model that level of dedication to the Starbucks brand and many of his interested parties, including employees and clients. He cannot speak alone, but I have to walk.
“The data suggests that people have not fully bought it in Brian Niccol. A strong recommendation would be to go to a charm attack and tell the story ‘Brian Niccol’. What is your vision? What are your aspirations? your passions about Starbucks? “
There was never any questions about it when Schultz was running. But for Niccol, “this story still has to be told,” Hahn observed.
The place of work and the behavior in question
Also attracting the outcome of Starbuck’s reputation are poor signs of opening and transparency, part of the behavior driver and concern for employee well -being, a factor within the workplace.
“Perceptions about Starbucks like the employer brand are weak, specifically her concern about employee well -being,” Hahn said, showing the strike in many places Starbucks this Christmas Eve. “This is a very bad publicity for the company.”
The hit employees were loud about how they are treated and managed and the adverse effects are required to hide with clients. “Negative feelings go deep here. Twenty years back, Starbucks was an aspirating place to work. It no longer has that glow. As an employer brand, goods are partially damaged. “
Those negative feelings of employees were aggravated by the well-published paid package, Niccol joined the company-reaching up to $ 117 million, including stock options, which is said to be one of the highest in corporate America to Do not mention the bold deal that allows him to work from home to California with a corporate plane in his Beck and call to fly it back and forth as needed.
Starbucks face a growing movement to join the roots of the grass. Over 11,000 baristas in 500 Starbucks stores have joined with Starbucks Workers United. This is only a part of 200,000+ employees and 11,000 shops owned by the company in the US, but signals to increase disappointment behind the counter. A typical barista makes less than $ 20 per hour.
Another waste factor is to have a positive impact on society. “The perception of Starbucks as a brand the goal -driven employer is shrinking,” Hahn said. In general, Starbucks have a lot of work to recover what is lost in the good name of the client and employees.
“Culture is your North Star and your reason to get out and do your job every day. In his absence, an employee loses their reason to believe, “explained Hahn.” This feeling of community – that feeling of culture – is shrinking.
“Starbucks has become a more corporate and money -driven culture and this is shaking anything else in terms of community values and sense of purpose within the company sphere. This is potentially very dangerous land. It must have A combination of both: a love for Starbucks to run more profits and a love for Starbucks as a deliberate, good company. reinstalled. “
Let the curves start
Hahn notes that the lack of Starbucks reputation may be regulated, but the company must identify issues and get jobs by fixing them.
“The data show that there are many people there who no longer like Starbucks, so they need a new reason to believe, to reconsider return to Starbucks for a coffee experience because now, they are not feeling love .
Niccol’s “Back to Starbucks” strategy is a start and it will take time to restore confidence that is easier to lose than recovering, noticed Hahn.
“There are many winning opportunities there for people to consider to return to Starbucks. While the jury is still out, there are still essential risks to be addressed. Really really investing in the right things? It is enough to turn the corner or have More than the company can do well?
“You can simply say” I will win you again. You have to try it and give people a reason to believe. It must be more than excellent marketing. There must be a link between promises that You do and those you meet.
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