New Starbucks boss plans 'fundamental change' and simpler menu

Published On Oct 22, 2024, 9:49 PM

Starbucks is undergoing significant changes under its new CEO, Brian Niccol, who aims to simplify its menu and pricing strategy amid declining sales in the U.S. and China. The company suspended its financial forecasts after reporting a drop in sales and profits, with U.S. comparable sales down by 6% and a more severe 14% decline in China. These changes come as consumers tighten their spending due to rising living costs. Starbucks shares fell over 4% following these announcements.

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Negative

Starbucks is facing a challenging environment with declining sales. The strategies mentioned, such as menu simplification, may appeal to cost-conscious consumers, but the immediate impact could be negative as changes often take time to implement and gain customer acceptance. Furthermore, the significant drop in sales in key markets raises concerns about their current customer engagement and economic factors affecting consumer spending.

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