NEW YORK -- Starbucks is reducing promotional offers through its mobile app as part of a strategy by new CEO Brian Niccol to reposition the brand as a premium option. This shift aims to encourage customers to pay full price for coffees and teas while alleviating pressure on employees during busy promotional periods.
In September, Starbucks introduced extra loyalty points on Tuesdays and discounts on select drink purchases on Saturdays. This marks a departure from earlier strategies that included extensive discounts such as 'buy one, get one free' and 50% off.
The company plans to forgo broad promotions during the holiday season, opting instead to advertise seasonal drinks. Niccol, who took over in September, is responding to a decline in sales over the past two quarters.
Analysts from Bank of America noted a decline in visits from infrequent customers and those aged 18 to 29. Niccol aims to return Starbucks to its roots as a 'community coffeehouse,' focusing on enhancing the in-store experience and distinguishing between 'to-go' and 'for-here' service.
In a letter to employees and customers, Niccol stated, 'There's a shared sense that we have drifted from our core. We're committed to elevating the in-store experience -- ensuring our spaces reflect the sights, smells, and sounds that define Starbucks.'