Starbucks launches Christmas promo amid global brand uncertainty

Starbucks launched its annual Christmas promotion in the Philippines on Saturday, a seasonal staple that has consistently attracted Filipino customers with its festive drinks and collectible items.

While the local market eagerly embraces the holiday offerings, the global coffee giant is facing significant challenges worldwide.

According to a report by Fortune, Starbucks reported quarterly earnings on Wednesday that fell short of Wall Street expectations, with disappointing sales in its two largest markets, the United States and China.

Simplifying operations

Newly appointed CEO Brian Niccol, known for revitalizing Chipotle Mexican Grill, has outlined a “Back to Starbucks” strategy aimed at simplifying operations and refocusing on the company’s core values.

Niccol plans to reintroduce self-service stations for milk and sugar in US stores by 2025, allowing customers greater control over their beverages.

The company will also eliminate extra charges for nondairy milk alternatives and streamline its menu to reduce complexity.

These initiatives aim to restore Starbucks as a “welcoming coffee house,” shifting away from the recent emphasis on mobile orders and quick pickups that have altered the store environment.

Turbulent period

The leadership changes come after a turbulent period for Starbucks, which has seen four CEOs since 2022 and a decline in same-store sales over three consecutive quarters.

Niccol’s decisive approach has been welcomed by investors, with analysts expressing optimism about his clear vision for the company’s future.

However, Starbucks is also contending with external challenges. The Middle East franchisee, Kuwait-based Alshaya Group, recently announced the layoff of around 2,000 employees due to challenging trading conditions over the past six months.