Starbucks Ranks Dead Last in Key Category in to New Coffee Customer Survey
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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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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.
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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.”
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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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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.”
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