Why You Should Expect Fewer Starbucks Discounts By The Holidays
In the last year, Starbucks has used discounts — like four drinks for $20 Monday deals and random buy one get one free deals — to mitigate concerns over price increases. While some employees have complained about the disorganization and chaotic working hours they've caused, with some going as far as to claim them as a tactic for slowing their unionization efforts, customers have seen the menu prices on their go-to orders rise significantly — with something as innocent as a cake pop increasing in price by 97% since 2014. Still, what some see as corporate greed can easily be overlooked with a scan on the mobile app and a $3 discount. Only, the new CEO Brian Niccol is expected to pull back on them ahead of the holidays.
According to an exclusive report from The Wall Street Journal, Starbucks has been slowly cutting down on the discounts ever since Niccol was named CEO in August 2024. While previously at Chipotle, Niccol was credited with increasing employee wages, expanding benefits, and the overall strengthening of the fast-casual Mexican eatery's culture. Now at Starbucks, Niccol has visited numerous store locations in an effort to speak directly with workers and customers. Going forward, he says his focus is simple: to create a welcoming environment and serve quality coffee. During a recent internal forum, the new CEO made it clear that he understood how important clearly communicating his plan with team members would be, a sentiment that was met with appreciation from employees.
What this means for you and your Starbucks
Inflation is hitting Americans hard, and it has been for a while now. For some, those discounts made a difference. But what might be perceived as a dig to you as a customer is just a small part of Niccol's bigger and better picture for the future of Starbucks. The Wall Street Journal reports that Sara Trilling, the brand's North America President, had been aware of the dismay the promotions were causing for its employees, citing the difficulties in predicting store traffic and, therefore, the number of staff needed on hand.
Scaling back the discounts and promotions, in turn, is Starbucks' way of responding to its employees' needs — giving them the necessary time, and providing the necessary environment, for them to deliver more personable and prompt service. This all goes hand-in-hand with Niccol's vision for Starbucks, as he hopes to distinguish the brand as a quality coffeehouse. He told team members at the internal forum last month: "We will be the community coffeehouse known for great coffee."
So, while you might be paying full price for your order going forward, you should begin to notice an improved experience at your local Starbucks and a more relaxed atmosphere — which will only mean better service, and, hopefully, even better coffee.