Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

People Are Abandoning Their Morning Starbucks Run For An Unexpected Reason...Many customers are skipping their morning lattes because of this.
thetakeout.com ^ | May 1, 2024 | Staff

Posted on 05/03/2024 7:03:36 AM PDT by Red Badger

A morning rush is nothing new for a coffee shop, especially not Starbucks. However, the global coffee chain recently found that its struggle to keep up with demand is leading some customers to second-guess purchasing their morning coffee.

Starbucks just announced its financial earnings for the second quarter of 2024. Overall, its leadership was upfront in saying that the second quarter of 2024 was not a successful one for the business as a whole. The chain’s U.S. same-store sales declined 3%, and sales outside of North America decreased 6%.

“Let me be clear,” Starbucks CEO Laxman Narasimhan said on the company’s most recent earnings call. “Our performance this quarter was disappointing and did not meet expectations … these results do not reflect our strengths, our capabilities, or the opportunities ahead.”

Where Starbucks saw some positive points was in its mobile transactions and loyalty program. Narasimhan noted on the call that loyalty program members ordering through the Starbucks app account for more than 60% of the chain’s morning business. However, within that silver lining there is still money being left on the table, as the brand noticed many mobile customers deciding not to actually place their orders after adding them to their cart.

“We saw a mid-teens percent order incompletion rate within the order channel this past quarter,” the CEO said. “In other words, customers using Mobile Order-Pay put items into their carts and sometimes chose not to complete the order, citing long wait times and product unavailability.”

Narasimhan used the example of Starbucks’ Potato, Cheddar & Chive Bakes to illustrate the company’s failure to meet demand. The CEO said the bakes were popular among customers, but Starbucks is currently only able to offer them in 2,000 of its U.S. stores.

How Starbucks is going to win back mobile customers

Although the chain’s Q2 performance did not paint a very pretty picture to its investors, Starbucks’ CEO also presented a plan of action alongside the disappointing sales numbers. To remedy the lack of product availability, Starbucks is investing more into its supply chain and focusing on stocking more of its customer base’s favorite items.

The coffee chain is also rolling out new equipment and making updates to its mobile app frequently. Narasimhan explained these changes are meant to reduce wait times and create more transparency with customers so that they can get a better idea of exactly when their order will be ready.

Starbucks also wants to capture the attention of the less loyal “occasional customers,” who are not signed up for its loyalty program. It plans to do this by offering mobile ordering and pay capabilities to non-loyalty program members starting in July. For now, it looks like Starbucks and its investors will have to wait until next quarter to find out if these changes are enough to win over the caffeine connoisseurs of the early morning.


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; Politics/Elections
KEYWORDS: bidenomics; fourdollarcoffee; getwokegobroke; qsr; starbucks
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-87 next last
To: ansel12

It would be a good time for talking and caressing, while you make the cappuchinos. I see your wisdom.


61 posted on 05/03/2024 8:37:24 AM PDT by Jonty30 (He hunted a mammoth for me, just because I said I was hungry. He is such a good friend. )
[ Post Reply | Private Reply | To 52 | View Replies]

To: ansel12

It would be a good time for talking and caressing, while you make the cappuchinos. I see your wisdom.


62 posted on 05/03/2024 8:37:47 AM PDT by Jonty30 (He hunted a mammoth for me, just because I said I was hungry. He is such a good friend. )
[ Post Reply | Private Reply | To 52 | View Replies]

To: Red Badger

People aren’t willing to pay $8 for coffee they can make at home. I used to make my daughter coffee at home before school every day with the syrup and all, special go cup with a lid, just as yum if not better than Starbucks.


63 posted on 05/03/2024 8:49:30 AM PDT by yldstrk ( )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Noumenon
My Bialetti Moka Pot and Illy ftw.

Welcome to America!

64 posted on 05/03/2024 8:54:33 AM PDT by Rinnwald
[ Post Reply | Private Reply | To 31 | View Replies]

To: Cloverfarm

Try Ethiopian Coffee, Yirgacheffe. I grind my own beans. Best cup of coffee.


65 posted on 05/03/2024 8:54:56 AM PDT by Tommy Revolts (,,)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Red Badger
win over the caffeine connoisseurs of the early morning

I observe it's the sugar they are after.

66 posted on 05/03/2024 9:15:02 AM PDT by aspasia
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

I think ever since 7-Eleven decided to substantially “up” their coffee quality, it has really put a major hurt on Starbucks. I can now get a large size coffee at 7-Eleven for just over US$2 and put in my own sugar and various creamer types.


67 posted on 05/03/2024 9:19:10 AM PDT by RayChuang88 (.FairTax: America's Economic Cure)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jonty30

I had a semi expensive Italian espresso maker that quit on me some time ago. I replaced it with a $100 Krups espresso maker. That is probably considered an act of blasphemy for espresso aficionados...


68 posted on 05/03/2024 9:25:50 AM PDT by EVO X ( )
[ Post Reply | Private Reply | To 19 | View Replies]

To: EVO X

I count cost/use. As long as you made enough cappuchinos to have gotten your money back, it’s all good.


69 posted on 05/03/2024 9:33:48 AM PDT by Jonty30 (He hunted a mammoth for me, just because I said I was hungry. He is such a good friend. )
[ Post Reply | Private Reply | To 68 | View Replies]

To: 1Old Pro

What? You can actually do that????

It is a strange thing when people will spend 6 dollars for a cup of sub-par coffee made by people hostile to you, who would likely spit in your coffee if they knew who you were, rather than spend the 2 minutes to do it themselves.

I don’t get it either.


70 posted on 05/03/2024 9:43:54 AM PDT by rlmorel (In Today's Democrat America, The $5 Dollar Bill is the New $1 Dollar Bill.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: 1Old Pro

“Then take the over $1,000/year saved and treat yourself to something.”

I did exactly that. Over a one year experiment, I used my Kuerig and started making my coffee at home (buying the bogo k-cups at Publix). I then took the cash I usually used for my daily cappuccinos (yes...plural and daily) and stuck it in a jar. At the end of the year, I paid cash for a Breville Barista Touch espresso maker, and buy local beans for GREAT coffee.


71 posted on 05/03/2024 9:49:03 AM PDT by USAF1985 (Joe McCarthy is a hero...he was absolutely, 100% correct! (Let’s go Brandon!))
[ Post Reply | Private Reply | To 4 | View Replies]

To: Red Badger
"Narasimhan used the example of Starbucks’ Potato, Cheddar & Chive Bakes to illustrate the company’s failure to meet demand."

Industrial processed potatoes mashed up with some industrial cheese and chives, that's what a multi-million-dollar franchised industrial syrupy-sweet coffee joint is banking on?

That pitcha tell a story right there.

72 posted on 05/03/2024 9:54:07 AM PDT by OKSooner ("You won't like what comes after America." - Leonard Cohen.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: OKSooner

Not only that, he thinks kombucha will save Starbucks.......................


73 posted on 05/03/2024 9:55:39 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
[ Post Reply | Private Reply | To 72 | View Replies]

To: Red Badger

Over priced, over roasted...bitter coffee.


74 posted on 05/03/2024 9:59:01 AM PDT by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DugwayDuke

If you like chicken salad sandwiches Costco has canned chicken that makes great chicken salad. It’s fairly cheap when it goes on sale - certainly cheaper than restaurants or fast food places.


75 posted on 05/03/2024 10:03:09 AM PDT by ladyjane
[ Post Reply | Private Reply | To 57 | View Replies]

To: Red Badger
Where Starbucks saw some positive points was in its mobile transactions and loyalty program.

On a related note, if you're not using the apps at fast food places, you're throwing money away.

I use my dive-thru code and order from the kiosk at McD's. Almost every time I visit, I get something for free with a purchase.

I've stopped ordering combo meals. I'll buy a burger, get a small fry for free, and take it home where I'll have a can of soda to drink.

76 posted on 05/03/2024 10:03:34 AM PDT by Drew68
[ Post Reply | Private Reply | To 1 | View Replies]

To: DugwayDuke

FYI

https://freerepublic.com/focus/chat/4235356/posts?page=65#65


77 posted on 05/03/2024 10:08:28 AM PDT by ladyjane
[ Post Reply | Private Reply | To 57 | View Replies]

To: Red Badger

For a 2 week period, I monitored coffee sales at a local grocery store.

Shelf items were purchased in large numbers, every day.

The volume was so great, that a typical customer would suspect that the shelf was not being stocked.

When in fact, the shelf would always end up about 30% full - meaning the restocking supply in general, would be close to “completely wiped out.” And, totally “wiped out” for the most popular brand/kind of coffee.

I learned that people who drink coffee, will drink almost any kind of coffee in the morning - “it is a must have.”

Folgers is the most popular. Maxwell House is the [meager] backup. Several “custom bags” with higher prices - these do not have a shelf, volume problem.

Folgers Columbian seemed to be the most preferred.

Caffinated is desired more than de-Caff, by almost 3:1 ratio.


78 posted on 05/03/2024 10:14:49 AM PDT by linMcHlp
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

makes me want to download their mobile app and put stuff in my cart, then cancel it.


79 posted on 05/03/2024 10:15:24 AM PDT by zeugma (Stop deluding yourself that America is still a free country.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

Maybe folks have come to the conclusion overly expensive ashtray juice served by woketards has become passé


80 posted on 05/03/2024 10:22:15 AM PDT by Sirius Lee (They intend to kill us. Plan to avoid this.)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-87 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson