Starbucks to reduce 30% in its F&B offerings in the US
It was not specified whether international locations would be affected as well
Starbucks’ Chairman and CEO Brian Niccol said during the company’s earnings call that there will be a “roughly 30% reduction” in its food and beverages by the end of the year, though he did not specify which items would be affected.
“As we do, we'll work to lead this market with breakthrough beverage and food innovation,” Niccol said. “We'll be more responsive and tuned into cultural moments like we did with the Dubai Matcha.”
Niccol also emphasised a renewed focus on Starbucks’ core mission.
“We’ve taken steps to refocus the business, our mission, and our marketing to better align with our identity as a coffee company,” he said in the Q1 FY2025 earnings video.
Additionally, despite a 4% decline in global comparable sales—driven by a 6% drop in comparable transactions—Starbucks opened 377 net new stores worldwide in Q1, bringing its total to 40,576 stores. Of these, 53% are company-operated, whilst 47% are licensed.
“Whilst we have room for improvement, we’re making progress as planned and have confidence we’re on the right track,” Niccol said.
