Starbucks scales back discounts under new CEO

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Subscribe to enjoy similar stories. Get ready to resume paying the regular price for your Starbucks fix. Starbucks is pulling back on promotions and discounts, an early move by Brian Niccol, the new chief executive officer, to reposition the coffee chain after a turbulent year.

Since Niccol was tapped in August to take the helm, Starbucks has quietly reduced the frenzy of discounts it had offered for long stretches of the past year, according to company executives and baristas. Starbucks and other restaurant chains have increasingly leaned on discounts this year to woo back customers after years of raising menu prices. Executives said the increases were necessary to cover higher costs and wages, but inflation-fatigued diners—especially lower-income consumers—have pulled back on eating out, prompting chains to promote their value and unfurl deals.

Starbucks is pivoting away from discounts as Niccol emphasizes the company’s hallmarks of selling handcrafted, premium coffee. Starbucks for years eschewed discounting and promotions, but recently stepped up offers through its app as its cafe traffic sagged and customers complained of high prices and long wait times. The company in September offered extra loyalty points on Tuesdays and deals on several drink purchases on Saturdays, downshifting from buy one get one, 50% off and other deals that spanned many months earlier this year.

Starbucks isn’t planning to run broad offers during the holiday season, and instead aims to promote seasonal drinks through advertising, the company said during an early-October strategy update for store leaders. Niccol, who took over at Starbucks about a month ago, is looking to reset the chain after a rocky year. Starbucks has experienced reduced