US

In need of a fix: How leadership wrangles, tech issues and rising costs rocked Starbucks

The coffee chain was once a darling of US customers but many have now fallen out of love with the iconic coffee brand

Starbucks shares plunged nearly 16 per cent on May 1 after the quarterly earnings and revenue fell short of analysts’ expectations. Picture: Getty

Is America falling out of love with Starbucks?

Back in September 2022, during its biennial investor day in Seattle, Howard Schultz, the then Starbucks chief executive and founder, unveiled the company’s ‘reinvention plan’ and its incoming chief executive Laxman Narasimhan to an audience of around 150 investors.

Predicting that his plan would lead to annual revenue growths of 10 to 12 per cent - based on annual store sales growth of 7 to 9 per ...