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As the holiday season approaches, Starbucks is scaling back on discounts and special promotions, aiming to reposition itself as a more premium brand. The company’s strategy, led by CEO Brian Niccol, focuses on enhancing the in-store experience and encouraging customers to pay full price for their favorite drinks.
Starbucks Scales Back App Discounts as Part of CEO Brian Niccol’s Strategy to Elevate Brand Image
Starbucks remains a favored destination for its festive peppermint, gingerbread-flavored beverages, and iconic pumpkin spice drinks as the holiday season approaches. Nevertheless, clients should not anticipate discounts this year when they visit the establishment to purchase their preferred hot beverages.
According to a recent report by The Wall Street Journal, Starbucks is scaling back on promotional offers through its mobile app to encourage customers to pay the total price for their coffees and teas. This move is part of new CEO Brian Niccol’s broader strategy to elevate the brand’s image and boost revenue. By cutting back on discounts, Starbucks is positioning itself as a more premium brand while easing the pressure on front-line employees who are often overwhelmed during major promotional events.
Starbucks Reduces App Promotions to Restore "Community Coffeehouse" Experience and Focus on In-Store Atmosphere
For instance, in September, the promotional offers on the Starbucks app were significantly reduced compared to earlier in the year. Customers were offered extra loyalty points on Tuesdays and deals on drinks on Saturdays, a noticeable shift from previous discounts like buy-one, get-one-free promotions and 50 percent off deals. This pullback is a vital part of Niccol’s plan to refocus on Starbucks' "community coffeehouse" roots, as the company has become increasingly reliant on online and app-driven sales, with fewer patrons opting to sit inside.
In a letter to employees and customers, Niccol acknowledged the need to restore Starbucks’ traditional in-store experience. "There’s a shared sense that we have drifted from our core," he said, as quoted by CNN. "We’re committed to elevating the in-store experience—ensuring our spaces reflect the sights, smells, and sounds that define Starbucks."
So, as the colder months set in and the holidays approach, customers can still enjoy their seasonal favorites—but they’ll pay full price.
