5 focus areas for Starbucks to reverse global declining sales

They also highlighted the need to change their strategy for the brand’s growth.

Brian Niccol, chairman and CEO of Starbucks, has noted five key areas on which Starbucks has to focus to move forward, following the company’s release of preliminary financial results for its fiscal fourth quarter and full fiscal year ending 29 September 2024.

In its recent financial statement, during Q4 2024, Starbucks' global comparable store sales declined by 7%, and its net revenue declined by 3% to US$9.1b.

Meanwhile, for the full fiscal year 2024, its global comparable store sales declined by 2%, and its net revenue increased by 1% to US$36.2b.

“People love Starbucks, but I’ve heard from some customers that we've drifted from our core, that we’ve made it harder to be a customer than it should be, and that we’ve stopped communicating with them,” said Niccol. “As a result, some are visiting less often.”

According to him, at Starbucks, coffee comes first. He emphasised their ‘deep engagement’ with their skilled roasters, the ‘premium equipment’ they use in their coffeehouses, and the skills of their baristas.

“Through product development, marketing, and in-store experience, we need to remind everyone that we are, and always have been, Starbucks Coffee Company,” said Niccol.

He also emphasised that Starbucks has always been about their green apron partners from the very beginning.

“We must ensure our baristas have the time and tools they need to provide exceptional customer service and that they are supported by strong leaders and managers across every store, said Niccol.

Aside from this, he also mentioned that they would need to offer a great experience to their customers every single time, especially the morning peak. By doing this, Niccol said that they are reorienting their work to ensure the quality.

“To succeed, we need to address staffing in our stores, remove bottlenecks, and simplify things for our baristas,” he said. “We need to refine mobile order and pay so it doesn’t overwhelm the café experience.”

Moreover, Niccol said they must re-establish Starbucks as the community coffeehouse. He said that they have been revisiting their stores to make sure they’re offering the amenities customers would expect in a community coffeehouse.  

Lastly, Niccol wants to re-introduce Starbucks to the world by fundamentally changing their marketing strategy.

“We will simplify our overly complex menu, fix our pricing architecture, and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.

Niccol has also tackled the need to change their strategy for the brand’s growth.

“Back to Starbucks” is that fundamental change,” said Brian. “When we stay true to our core identity and focus on delivering a great partner and customer experience, our customers come — and importantly, they come back.”