Starbucks CEO Brian Niccol Ends Discount Strategy to Focus on Premium Experience

The coffee giant is scaling back promotions to restore its reputation as a high-end brand and improve in-store service.

Starbucks has decided to cut back on discounts and promotions under the leadership of new CEO Brian Niccol, who took over in August 2024.
Niccol's strategy aims to reposition Starbucks as a premium coffeehouse, moving away from heavy discounting that was introduced to counter declining sales.
The company will focus on promoting seasonal drinks through advertising rather than offering broad holiday discounts.
Starbucks plans to enhance the in-store experience by emphasizing a community coffeehouse atmosphere with improved design and service.
Despite previous efforts to boost sales via promotions, Starbucks has faced two consecutive quarters of declining sales, prompting this strategic shift.