Starbucks Is Backing Off Its Short-Lived Discounting Strategy – CoffeeTalk

Starbucks CEO Brian Niccol is refocusing on the company’s premium brand positioning and renouncing its short-lived discounting strategy. The company’s first-ever combo meals were introduced in June to attract cash-strapped customers, but the plan to expand Starbucks’ discounting has been abandoned. Starbucks will not run offers during the holiday season and will promote new and returning beverages via a robust advertising strategy.

Since taking over from Laxman Narasimhan, Niccol has quietly returned the company to pre-Narasimhan strategies and largely erased many recent changes. The company has seemingly gotten rid of the role of global chief merchant and product officer, which was created under Narasimhan’s leadership and responsibilities included product development, consumer insights, and data science.

Niccol has prioritized refocusing the Starbucks brand on being a welcoming coffeehouse and has vowed to execute the changes thoughtfully. He has also emphasized that any changes made must make the brand better and be thoughtfully communicated to employees.

Niccol has emphasized that Starbucks’ differentiation is paramount, which includes not letting others define who they are, which would include not only discounting but also forays into menu trends spearheaded by growing competitors like Dutch Bros and 7 Brew.

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