Starbucks Ranks Dead Last in Key Category in to New Coffee Customer Survey
Evan Starbies fans admit this is a problem.
Starbucks customers are a dedicated bunch—statistics show 21% return to the chain within three days, and 71% visit the coffee shop at least once a week, according to Business Dasher. The brand also has a high customer retention rate of 44%, compared to the industry average of 25%. “The rewards program … is generating significant revenue for Starbucks,” interim CEO Howard Schultz said during a November 2022 analyst call. But there is one category where Starbucks is not doing so well—in fact, it’s coming in dead last. This is where coffee customers say Starbucks is failing.
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Not Affordable
Only 51% of customers think Starbucks is affordable, according to data collected by Technomic, a sister company of Restaurant Business. This places the coffee giant lowest out of the big chains—Tim Hortons comes in at number one with 79% of customers saying it’s affordable.
​Too Expensive
Despite customer loyalty, some are finally turning away from the chain, and its share price hit a one-year low in April 2024. “Among the 45% of consumers buying less or no longer buying from Starbucks, the top reason was related to price, with 47% saying ‘it’s become too expensive,” Deutsche Bank research analyst Lauren Silberman told The Wall Street Journal, with cost “well above every other reason indicated.”
​Almost $14 For a Frappuccino
While Starbucks prices change across the nation, Tasting Table found a “Hocus Pocus Frappuccino” seasonal latte cost $13.90 in Los Angeles, as of 2023. A Churro Frappuccino will set you back $10.25, so it’s easy to see how the expense builds up, especially if you go several times a week.
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​California Minimum Wage
One reason Starbucks raised prices in California was in response to the minimum wage, according to Business Insider: “A spokesperson for Starbucks confirmed to BI that prices in stores across California increased in response to the new minimum wage but declined to specify the average menu item increase.”
​Barista Battles
Customers were not happy about the price increase, and there were reports of people verbally abusing baristas. “As if we don’t get harassed enough,” a Starbucks barista posted on Reddit. “The worst part is gonna be the old men who just get a black coffee asking me why it costs more. I feel like the people with fancy drinks know they’re spending a ton already and won’t care too much,” another barista responded in the comments.
