The love affair between coffee lovers and Starbucks seems to be on the rocks, and the coffee giant is struggling to win back their favor. A recent report from the Wall Street Journal sheds light on the reasons behind this shift in customer sentiment. Rising costs, long wait times, and what some perceive as the company’s controversial political stances have caused a 6% drop in US orders for Starbucks in the quarter ended June 30.
For people like Dan Palmer, the increasing price of Starbucks beverages is no longer justifiable. Palmer, a 66-year-old from Chicago, pointed out that each cup now costs upward of $6, stating, “It’s not a deal in any sense of the word.” Many customers share Palmer’s sentiment and have consciously reduced their spending on takeout amid the possibility of an impending recession. A survey by Revenue Management Solutions found that nearly 40% of consumers reported spending less on takeout.
In addition to the rising costs, another major turn-off for Starbucks customers is the long wait times, despite the introduction of mobile ordering. A survey by Technomic Ignite Consumer revealed that in 2024, more than 30% of customers experienced wait times of up to 15 minutes, with some even waiting for half an hour. Former Starbucks CEO Howard Schultz acknowledged the failure of the mobile ordering system, which filters 30% of the company’s business. Schultz described the situation as a “mosh pit” and stated, “that’s not Starbucks.”
To win back customers, Starbucks has launched a series of discount offers and promotions. The company has also restructured its workflow to ensure faster service. However, the challenges Starbucks faces go beyond operational issues. The company has been a target for both the left and right sides of the political spectrum. In the past, Starbucks faced criticism for not explicitly referencing Christmas on its red holiday cups, with some accusing the company of being anti-Christian. On the other hand, left-leaning leaders accused Starbucks of financially supporting Israel, an allegation that Schultz vehemently denied.
More recently, Starbucks has been under fire for allegedly suppressing employees’ attempts to unionize. These controversies have led to nationwide boycotts from both sides of the political aisle, further tarnishing the company’s reputation. Despite these challenges, Starbucks remains a top-performing US company and has seen market growth since its disappointing quarter report, with its stock jumping nearly 17% since June.
In conclusion, Starbucks is facing a significant backlash from customers who are disillusioned by rising prices, long wait times, and the company’s perceived controversial political stances. While the company has made efforts to address these issues, it also needs to navigate the cultural firestorm it finds itself in. Starbucks’ reputation has been questioned by both left and right-leaning individuals, leading to calls for nationwide boycotts. Despite these challenges, Starbucks continues to be a strong player in the market, with its stock showing growth in recent months.
