Starbucks Red Cup giveaway gives coffee chain much needed jolt

STARBUCKS’s holiday-themed cups drove a bigger spike in customer visits than in previous years, a welcome boost for a brand that’s looking to stage a turnaround.

The Red Cup Day giveaway on Nov 14 sparked a roughly 42 per cent boost in daily visits compared with the average of the five prior on Thursday (Nov 28), according to Placer.ai mobility data.

That’s a higher jump than the company saw during last year’s promotion, which was marked by a strike by unionised workers. Around that time, a pullback from inflation-weary customers was also taking hold, as was the fallout from boycotts stemming from the war in the Middle East. This year’s performance also bested 2022 numbers, according to Placer.

Starbucks has recorded three straight quarters of same-store sales declines, which new chief executive officer Brian Niccol has vowed to reverse. He’s pledged to make cafes more welcoming, simplify the chain’s menu and speed up service.

Niccol also nixed the chain’s upcharge for non-dairy milks starting on Nov 7, effectively giving a price cut to customers who get that customisation. BLOOMBERG

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