Breaking News
1. More than 200 arrested in Kenya protests over proposed tax hikes in finance bill      2. South Korea orders doctors who joined protracted strike over medical school plan to return to work      3. Putin in North Korea to boost defence ties      4. Mumbai-bound IndiGo flight from Chennai receives bomb threat message      5. Russia's drone attack on Lviv region injures one, Ukraine's official says      6. PM Modi to inaugurate Nalanda University campus in Bihar today      7. Delhi’s peak power crosses 8000 MW, highest ever in history of national capital      8. PM Modi insugurates PM-Kisan scheme      9. I consider farmers, women, as strong pillars of Viksit Bharat: PM Modi in Varanasi      10. Over 30,000 support groups receive Krishi Sakhi, says PM Modi      11. Maharashtra core team held meeting with central leadership      12. Rahul Gandhi resigns from Wayanad      13. After the accident, Kanchanjunga Express arrives at Sealdah station; food and medical assistance provided.      14. PM Modi to visit Varanasi today, release 17th PM-Kisan instalment      15. Two key Democrats in US Congress approve major arms sale to Israel, Washington Post reports      16. Nikhil Gupta will now face justice in American courtroom, says US attorney general      17. Judge orders railway to pay Washington tribe nearly $400 million for trespassing with oil trains      18. Australian PM flags 'concern' over Chinese actions at media event      19. ‘Good players, but not good as team’: Babar unfiltered on reason for T20 WC exit      20. Kichcha Sudeep reacts to Kannada actor Darshan's arrest in murder case     

Starbucks in trouble as prices and boycotts affect its sales

  • Posted on June 9, 2024
  • News
  • By TSW NEWS DESK
  • 420 Views

Starbucks faces sales slump as once-loyal customers defect over rising prices and boycott calls sparked by union stance and Mideast controversy, raising concerns about American consumer spending.

1717912012-hEAj4KUQlX.png

Starbucks is facing severe problems as loyal consumers switch to other brands due to high prices and resulting boycott, which has caused a significant decline in coffee company sales.

In the latest quarter, Starbucks faced a 1% drop in sale in the global market. of 8% for the year and a 3% decline in the U. S market – the worst performance outside of the pandemic and the recession. They even diminished by 4% even the people in the rewards program, who are expected to be loyal supporters of the brand.

The price increase and inflation has reached its boiling point for customers like Andrew Buckley who claimed to stop going to Starbucks due to expensive drink prices of more than $6. Some of them like David White have even quit orders halfway through the purchase process due to rising figures and the company’s opposition to workers forming unions.

The sales drop arises at a time when Starbucks is experiencing boycotts based on its legal action against a union over statements of support for Palestine. While not directly boycotted, the firm was caught in the cross hairs of controversy over Israel’s military campaign in Gaza that saw protests and social media campaigns which chief executives admitted affected sales.

While expressing support for the brand, CEO Laxman Narasimhan said it would return to business by adding new products, campaigns and an increase in the rate of service delivery. However, experts have said re-establishing the trust of the customers may be a herculean task akin to the process that took Chipotle several years to overcome following food poisoning scares.

Also Read: Britannia's Q3 Net Profit Plunges by 40%, Sales Inch Up Over 2%

Read in this light, the troubles facing the iconic brand as it battles to regain its footing, prompt consideration of whether the consumer spending that powered the economy could be slowing. Although many analysts attribute it to the specific situation of Starbucks, the company may signal a trend in other American expenditures amid inflation.

Author
No Image
Author
TSW NEWS DESK

You May Also Like