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He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead

2

Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline

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RetailStarbucks

Starbucks is reportedly pulling back on discounts

By
Chris Morris
Chris Morris
Former Contributing Writer
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By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
October 14, 2024, 11:04 AM ET
It's going to be harder to find discounts at your local Starbucks.
It's going to be harder to find discounts at your local Starbucks. Nicolas Economou/NurPhoto via Getty Images
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It’s about to cost more to get your Starbucks fix.

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The chain has been offering a series of discounts over the past year as it attempted to lure back customers. But the Wall Street Journal reports that new CEO Brian Niccol is ending that practice, opting to return to a positioning as a premium brand.

Starbucks, for much of its history, resisted efforts to offer deals, relying on its products and seasonal drinks to bring in customers. But repeated price increases and inflation began to chew away at the loyalty of those regulars, forcing the company to offer everything from extra loyalty points to discounts.

Over the summer, for example, the coffee chain introduced a new “pairings menu,” which gives customers the ability to pair a tall hot or iced tea or coffee with some staple foods, including a butter croissant or breakfast sandwich, for $5 to $6.

This holiday season, however, you won’t see offers like that. Last month, some deals were reduced to just once per week. And as November and December approach, the company plans to focus on promoting its seasonal drinks, according to the Journal.

Starbucks told Fortune, “We can confirm that the WSJ piece is accurate.”

Niccol has vowed to bring Starbucks back to its former glory, a challenging assignment, as the company has run through four CEOs in the last two years.

“In some places—especially in the U.S.—we aren’t always delivering,” Niccol wrote in a memo to employees last month. “It can feel transactional, menus can feel overwhelming, the product is inconsistent, the wait too long or the handoff too hectic… We’re refocusing on what has always set Starbucks apart—a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas.”

Niccol previously was CEO of Chipotle and is credited for turning around that Tex-Mex chain, which saw its stock price soar 250% in the past five years.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

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