Starbucks: Sales Momentum Continues as Cost Investments Nearly Lapped. Focused on Aug 25 HQ Visit

Research evidence excerpt

Starbucks: Sales Momentum Continues as Cost Investments Nearly Lapped. Focused on Aug 25 HQ Visit

nu/Marketing

-Overwhelmed staff - Align Menu with core identity of a coffee -30% reduction in Food/Drink SKUs by end of F25

Menu Simplification/

-Decline in traffic company -Breakthrough beverage and food innovation

Removal of promotional products -Diluted premium positioning -Straightforward pricing -Sugar free matcha and cortado

-Charging for things that don't really need -Improve pricing architecture

Removing Non-Dairy Upcharge to be charged for - ~ Half of customers will see a price -Nov. 7 in North America company operated locations

- Price surprise reduction of 10% or more

Starting Five baked croissants, Double Chocolate

(Picking 5 Locations at Protein Cold Foam, Starbucks 1971 Roast

innovations) a time to pilot -Higher riskproducts/platformsof failure from not testing challenges-Find Solutions(productfor testingdifferentandoperationsworkflow) -CurrentCookie, Tests:Banana-LedFreshly to the Coffeehouse walks

Global Coffee Creators

(Two paid, full time content creators to -Brand dilution -Showcaseand uniquecraft behindStarbuckseveryexperiencescup -One current parnterunique andStarbucksOne externalexperiencescreator to capture

travel for 12 months)

Traditional Media -Limited audience reach -Showcase Starbucks as having the "finest -New Coffee Forward US marketing Campaign (January)

(Advertising to ALL, not just MSR) -Missed revenue opportunities quality coffee"

New Loyalty Program - Low customer frequency due to non - Attract customers with lower frequency - Launching March 10; introduced new 60-Star redemption

(Three Tier Loyalty Program) existent loyalty program '- Drive incremental revenue of $150 million option, $2 off on collecting 60-Star

performance