The days of getting a cup of coffee for $5 are long gone and Starbucks is reeling with how to draw in customers to a tizzy over high prices for a cold brew they’ll wait 20 minutes to get.
Despite being a Gen-Z staple, the coffee giant saw a six percent drop in US orders in the fourth fiscal quarter of 2024 and customers are citing price as a problem.
But it’s more than just paying $7 to $9 for sugary drinks that are setting customers over the edge, but the extreme wait times and long lines that have left some drinking simple black coffees waiting excessive lengths as baristas quickly whip up more elaborate drinks in front of theirs.
Another crack in the armor is the incessant tip promptings that are begging customers to dish out more of their hard-earned money prior to even receiving their drinks.
Now, Starbucks has hired in Brian Niccol – who has been applauded for his successful turnaround of Chipotle – as its new CEO to save the dying chain.
These are the reasons US customers are ditching the famous chain.
Starbucks has hired in Brian Niccol – who has been applauded for his successful turnaround of Chipotle – as its new CEO to save the dying chain
![Despite being a Gen-Z staple, the coffee giant saw a six percent drop in US orders in the fourth fiscal quarter of 2024 and customers are citing price as a problem](https://i.dailymail.co.uk/1s/2024/08/17/21/88633385-13753501-image-a-123_1723924828528.jpg)
Despite being a Gen-Z staple, the coffee giant saw a six percent drop in US orders in the fourth fiscal quarter of 2024 and customers are citing price as a problem
Prices
Dan Palmer, 66, of Chicago, used to frequent his local Starbucks to pick up breakfast and get a drink, like his favorite, the mango dragonfruit refresher, he told the Wall Street Journal.
Now, his drink will cause him to fork over more than $6 and he doesn’t find the beverage to be a ‘deal in any sense of the word.’
‘The prices have gone up – a lot,’ he told WSJ.
Starbuck’s loss in revenue is connected to rising prices – something the company has pinned down to more expensive ingredients and paying workers more.
Add in the fact that nearly 40 percent of customers are now eating out less since the pandemic and rising inflation, many restaurants and businesses are hurriedly trying to find ways to keep patrons incited.
Starbucks has offered BOGO days and even recently introduced a food-and-drink combo that cost between $5 and $7 to try and maintain profit, WSJ reported.
![Nothing angers customers more than speedily putting in a drink order on the app, only to walk into a mosh pit of people and your drink nowhere to be seen](https://i.dailymail.co.uk/1s/2024/08/17/21/88633379-13753501-image-a-126_1723924846230.jpg)
Nothing angers customers more than speedily putting in a drink order on the app, only to walk into a mosh pit of people and your drink nowhere to be seen
Lines
Nothing angers customers more than speedily putting in a drink order on the app, only to walk into a mosh pit of people and your drink nowhere to be seen.
‘A lot of people drink Starbucks not because it’s delicious, but because it’s convenient,’ Whitni Mungin, 44, of Chicago, told WSJ.
Around 30 percent of all US orders are done on the app, which has led to large crowds around the mobile order pickup counters in stores.
‘Everyone shows up, and all of a sudden we’ve got a mosh pit, and that’s not Starbucks,’ former CEO Howard Schultz said on a podcast in June.
Part of his vision for the country, while it was under his tenure, was to create a ‘third place’ where customers wanted to stay awhile.
But as more and more cafes remodel and remove furniture, Steve Weeks, 68, of Southern California, admits ‘you don’t get the same feeling they want you to stay in there as long.’
But in order to keep up with the demand of drinks, many stores are removing seating to make space for to-go lines.
Starbucks has also begun rolling out to-go pickup stores that don’t even offer a place to sit or use the restroom – a staple in many big cities.
In addition, cold drinks offer an array of add-ons, from cold foam to syrups to mix-in options that it’s adding to the time it takes to whip one up for a customer.
Cold beverages alone make up roughly 70 percent of drink orders in the US, according to WSJ.
The company is rolling out new innovations to help speed up the process, such as a cold-bar station, to help alleviate some of the problems.
![Another issue he has with the chain is the incessant prompt to tip](https://i.dailymail.co.uk/1s/2024/08/17/21/88633387-13753501-image-a-125_1723924840135.jpg)
Another issue he has with the chain is the incessant prompt to tip
Tip Prompts
Brad Pearl, of Spokane, Washington, used to visit the chain up to five times a week for more than two decades, but he’s recently changed to a local shop after noticing prices creeping up.
Another issue he has with the chain is the incessant prompt to tip.
‘You haven’t even been served,’ he told WSJ.
Since ditching the overpriced chain, he saves $150 a month, he revealed to the outlet, and he now enjoys an iced caffè latte for 25 cents cheaper.
As for his former hunting ground: ‘It’s really a luxury.’
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