Starbucks Plans Revival Strategy as Customer Visits Decline and Sales Struggle

Core Perspective - Starbucks is launching a "Back to Starbucks" initiative aimed at enhancing customer experience and reclaiming its identity amidst declining customer visits [1][7] Financial Performance - In the fourth quarter, global comparable store sales fell by 7%, and consolidated net revenue decreased by 3% to $9.1 billion [3][6] - U.S. comparable store sales declined by 6%, driven by a 10% drop in transactions, despite a 4% increase in average ticket [4] - For the full fiscal year, comparable store sales declined by 2%, while consolidated net revenue slightly increased to $36.2 billion [6] Strategic Initiatives - The company aims to simplify its menu and reposition itself as a community gathering place to attract more customers [2][10] - Staffing improvements, streamlined processes, and a commitment to high-quality service are emphasized to enhance customer engagement [9] - The goal is to complete all in-store orders in less than four minutes, with 50% of transactions already meeting this target [12][13] Market Focus - The company is focusing on the U.S. market while exploring growth opportunities internationally, particularly in China [14] - Marketing efforts will shift from targeting only Starbucks Rewards customers to a broader audience, highlighting handcrafted products and coffee innovation [15]