Starbucks shifts away from promos to premium: Why the new CEO is doing away with deals, discounts
Starbucks recently announced some changes to the business, switching up its strategy in some core areas, including perks and discounts.
After two consecutive quarters of disappointing sales, the Seattle-based coffee company's new CEO Brian Niccol confirmed there will be several changes to the strategy in hopes of repositioning Starbucks back to a premium brand, the Wall Street Journal first reported on Monday.
One of the major moves that the former Chipotle CEO has quietly implemeneted includes cutting back on promotional offers, such as buy-one get-one or other discounts, which were re-introduced as an effort to entice customer spending amid rising inflation, WSJ reported.
Earlier this fall, Niccol said in a letter that the company needs to get back to its roots as a community coffee house.
More changes could come in the form of the coffeehouse interior design, seating and shops.
As of now, there have been no reported changes to any seasonal menu offerings.
A representative for Starbucks did not immediately respond to ABC News' request for comment.
