Why Starbucks Is Struggling

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Published 2024-08-02
Starbucks reported a global same-store sales decline of 3% and missed revenue expectations by $130 million in its fiscal third-quarter earnings on July 30, 2024. Its share price has tumbled nearly 25% in the past year. That's all due to operating challenges, an increasingly price conscious consumer and boycotts related to the Israel-Hamas war. Still, the coffee giant accounted for more than 25% of the U.S. coffee and snack shop market in 2023.

Chapters:
0:00 Introduction
1:25 Chapter 1: Challenges
4:00 Chapter 2: Value wars
7:40 Chapter 3: Unions and boycotts
9:30 Chapter 4: Fixing its problems

Produced and Edited by: Ryan Baker
Camera and Audio by: Natalie Rice, Cary Patton, Steven Bechtold
Animation: Christina Locopo, Emily Rabbideau
Senior Managing Producer: Tala Hadavi
Field Producer: Kevin Schmidt
Additional Footage: Getty Images

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Why Starbucks Is Struggling

All Comments (21)
  • @AlexRocks24-7
    I used to go to Starbucks then I woke up and started supporting the local coffeeshops. Never looked back.
  • @kronosaurelius
    Once I got a Breville and hone my skill I realized Starbucks was more marketing than quality.
  • @cesarher315
    Unlimited growth is not sustainable. Shareholders thirst for profits are killing businesses
  • @photonashville
    Coffee at home costs $0.50 everyday and tastes endlessly better than their bitter crap.
  • @joelink3483
    I don’t mind waiting an extra 5 -10 minute for a quality cup of coffee. Wait time isn’t the issue. A latte with a milk substitute costing $9 is the problem.
  • @malav_patel
    Makes sense…A small cookie and small coffee costed me $9.87 the other day. Thats more than a veggie bowl at chipotle for $9.75
  • @_Rocket_91
    It’s been sad to watch the already questionable quality continue to drop across the board as prices have continued to rise over the years. I have no desire to pay more for worse products
  • @kimannepark4709
    I used to love Starbucks, but they're simply too expensive. Once the inflation went up, people started being price conscious and saving money. Also, the rise of modern home coffee makers, that are now very easy to operate and can make better tasting coffee than Starbucks in seconds, right in the comfort of your own home.
  • @afb2
    I needed a quick lunch and went in there to get a croissant. Didn't even need it heated or anything. The person at the register said they would be right with me. I left after 10 minutes.
  • @troy66777
    Too expensive and they treat their employees horribly. Support local!
  • @danwithguitar
    News networks acting like people not wanting to pay $8 for an extremely mid cup of coffee during a cost of living crisis is some big mystery SMH.
  • @christianang1293
    By cutting back my starbucks expenses gives more money for my groceries.
  • @kenfrancis117
    If I wanted watery coffee, I'll go to Starbucks. Since I don't want that, I'll go elsewhere
  • @zpzp96
    The only problem with Starbucks as someone who used to spend AT LEAST $10 a day for 4 years is that their price increase. I understand everything went up but certain items just can't push too far. My Venti Iced Latte with vanilla and hazlenut syrup with vanilla sweet cold foam went from like $6 ish to now almost $9. that's a BIG difference.
  • @scaldon2
    8 dollars for latte is why. And brutal wai time . 15 mins for a latte. People are constantly rushing.
  • @alexl0890
    Lower prices. That's all you have to do. Not that hard.