Starbucks pulls back on some promotions as it preps for holiday rush

Starbucks Corporation (NASDAQ:SBUX) is looking to take back some pricing by pulling back on promotions and discounts, according to The Wall Street Journal.

The Seattle-based coffee giant was noted to have quietly reduced the “frenzy” of discounts it had offered for long stretches of the past year, according to Starbucks (SBUX) executives and baristas that talked to the WSJ. New CEO Brian Niccol is pivoting away from discounts as Niccol to increase the emphasis on selling the handcrafted, premium coffee that Starbucks (SBUX) has built its reputation on. In September, Starbucks (SBUX) offered extra loyalty points on Tuesdays and deals on several drink purchases on Saturdays, which is less promotional than the buy one, get one 50% off and other deals that have run in prior months. Notably, Starbucks (SBUX) isn’t planning to run broad offers during the holiday season, but is looking to promote seasonal drinks through advertising.

The changes show that Niccol is looking to make an immediate difference this quarter, with both corporate earnings and the in-cafe experience for customers. “The strategy is, simply put, just making a couple powerful choices, and then we’ve got to execute like crazy,” stated Niccol in an internal company postin. “We will be the community coffeehouse known for great coffee,” he said separately.

Shares of Starbucks (SBUX) are up 1.5% over the last six weeks as they calmed down after an initial pop from the hiring of Brian Niccol as CEO. The coffee stock, which was swapping hands at around $95 during the Monday premarket session, has not closed over $100 in 2024. Starbucks (SBUX) is only a few weeks away from its FQ4 earnings report. Analysts forecast revenue of $9.38 billion and EPS of $1.04. 23 out of the last 27 EPS revisions have been on the downward side. The earnings conference call will be CEO Brian Niccol’s first with the company.