Connect with us

Lifestyle

Why Starbucks is losing sales, and what it's doing about it

Published

on

Why Starbucks is losing sales, and what it's doing about it

Starbucks has hired a new CEO to turn around sales declines.

Matt Rourke/AP


hide caption

toggle caption

Advertisement

Matt Rourke/AP

You know things are rough at Starbucks when the company drops bad news preemptively, which it did last week to get ahead of Wednesday’s deadline to report earnings.

Sales in the U.S. have fallen for months, down 6% in the latest quarter compared to a year earlier, making it the worst quarter since the pandemic-era shutdowns. The number of purchases dropped 10%.

The chain’s new CEO is now ordering up a change: a plan he’s calling “Back to Starbucks,” evoking a time when Starbucks was simpler, cheaper, cozier, cooler — and thriving.

Advertisement

“We need to fundamentally change our recent strategy,” CEO Brian Niccol says in a video address about two months into the job. He mentioned plans to “simplify our overly complex menu,” adding: “We must re-establish ourselves as the community coffeehouse.”

In the absence of more specifics, speculation is rampant online: Will cafes get plushy couches? Will Starbucks limit syrups, toppings and endlessly customizable drinks disparaged as “Frankendrinks”? Will it reopen its condiment bar, where people used to pour their own milk and sweeteners before the pandemic?

A company representative tells NPR the CEO’s plans are still shaping up. Some details might emerge on Wednesday, as Niccol takes investors’ questions for the first time.

Too fancy to be basic, too basic to be fancy

Two women with paper coffee cups chat at a table near an airy, new Starbucks in the upscale Washington suburb of Bethesda, Md. Closer inspection reveals the cups to be from another cafe a block away.

“We’re just here for the sun,” says one of the women, Tamar King. “This is a park.”

Advertisement

In fact, this Starbucks is swarmed by rivals: This busy downtown stretch counts 11 coffee spots within a two-block radius. That includes the usual suspects Dunkin’ and Panera, the trendy options Tatte Bakery and Ceremony Coffee Roasters, and even another Starbucks. This kind of competition didn’t use to threaten the coffee giant, but it’s grown intensely.

In a video address, new Starbucks CEO Brian Niccol says the chain’s strategy needs to “fundamentally change.”

NPR Screenshot/Starbucks CEO video address


hide caption

toggle caption

Advertisement

NPR Screenshot/Starbucks CEO video address

Plus, there’s another battlefront. The company that got America hooked on coffee now competes not only against other cafes, but also against all the fancy coffee makers people have at home or work.

That means Starbucks is stuck in the middle: Too fancy to be basic, too basic to be fancy.

“I used to go [to Starbucks] every day for years,” King says. What changed? “The office where I work has a fantastic coffee machine. Fantastic.”

Advertisement

Niccol talks about Starbucks losing occasional customers. But once-loyal visitors are also on the line.

“We loved it so much for years,” says Lisa Janofsky, who came by the Bethesda Starbucks with her husband Jerry to cash in on his rewards card: a free venti skim latte as a gift for his birthday.

They used to go to Starbucks daily. But now they gravitate to gourmet coffee shops when they want the “community feel” and superior coffee flavor. The daily lattes get made at home, they estimate, for about $1 a cup.

“We have a nice machine at home that we use,” Jerry Janofsky says. “And my wife is a great barista, she makes designs for me.”

On the wish list: better beans, cheaper drinks, latte art

Lisa Janofsky says she’d visit more often, if Starbucks beans tasted less burnt, size options included a short latte with just one shot of espresso, and if baristas did latte art.

Advertisement

The prospect of baristas making designs on top of the milk foam is hard to imagine at the pace of Starbucks, especially during the morning rush. Mobile orders often pile up, stores get crowded, workers overwhelmed.

“We need to address staffing in our stores, remove bottlenecks and simplify things for our baristas,” Niccol, the new CEO, says. “We need to refine mobile order and pay, so it doesn’t overwhelm the café experience.”

Starbucks is betting big on Niccol, literally. The coffee company lured him from Chipotle, which he’s credited with rebooting after a series of foodborne-illness outbreaks. At the coffee giant, he could earn one of the biggest paychecks in the industry — more than $100 million — if he succeeds in turning it around.

His challenges are many.

Several shoppers in Bethesda bring up their disappointment that Starbucks is still fighting its unionized shops. The chain has lost its footing in China. It’s facing boycotts in the Middle East and Asia over the company’s perceived support of Israel in its conflict with Gaza. One woman in Maryland says that’s why two dozen people she knows in the U.S. have also stopped visiting Starbucks.

Advertisement

And the biggest complaint by far?

“It’s way too expensive,” says Anjeli Smith, who regularly works from Starbucks cafes, and on this day met a friend over a pumpkin cream cold brew. “I mostly just use my gift cards for birthdays and graduation.”

Niccol will likely get asked about his pricing plans on Wednesday, when he speaks to investors. He’s spoken only in vague terms so far, pledging to “fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit.”

Lifestyle

‘How to Rule the World’ explores education and power at Stanford University

Published

on

‘How to Rule the World’ explores education and power at Stanford University

Students walk on the Stanford University campus on March 14, 2019, in Stanford, Calif.

Ben Margot/AP


hide caption

toggle caption

Advertisement

Ben Margot/AP

When Theo Baker arrived at Stanford University a few years ago, he joined the student newspaper, following the path of his journalist parents, Peter Baker, a White House correspondent for The New York Times, and Susan Glasser, a writer for The New Yorker.

Through his reporting as a student journalist, he eventually broke a story about manipulated data in Stanford President Marc Tessier-Lavigne’s neuroscience research that helped lead to the university president’s resignation.

Theo Baker’s book, How to Rule the World: An Education in Power at Stanford University was released May 19. In it, Baker describes Stanford as a place where proximity to Silicon Valley gives rise to a parallel system of influence, recruitment and money, with investors looking to identify promising students almost as soon as they arrive on campus.

Advertisement

He told Morning Edition host Steve Inskeep there was “a sort of Stanford inside Stanford,” where elite students are drawn into an “alternate reality” of excess and access to cut corners.

In the interview, he discusses how Stanford is not just a university but also a pipeline where status and power can matter as much as ideas.

We reached out to Stanford University for comment and have not heard back.

Listen to the interview by clicking play on the blue box above.

Advertisement
Continue Reading

Lifestyle

OTB Takes Full Control of Viktor & Rolf

Published

on

OTB Takes Full Control of Viktor & Rolf
The Italian fashion group behind Diesel and Maison Margiela is taking full ownership of the avant-garde haute couture house, acquiring the remaining 30 percent it didn’t already own. Founders Viktor Horsting and Rolf Snoeren remain creative directors.
Continue Reading

Lifestyle

How having zero points in tennis — or ‘love’ — came to sound so sweet

Published

on

How having zero points in tennis — or ‘love’ — came to sound so sweet

The scoreboard shows the results of the women’s singles final match between Iga Swiatek of Poland and Amanda Anisimova of the U.S. at the Wimbledon Tennis Championships in London, Saturday, July 12, 2025.

Kirsty Wigglesworth/AP


hide caption

toggle caption

Advertisement

Kirsty Wigglesworth/AP

Fifteen points in tennis? Nice. Thirty, 40 — even better. Advantage — that sounds good. “Love” — that also must be great, right? Well, not quite.

As the French Open rolls on and Serena Williams has announced her return to the sport, maybe you’ve been paying a little more attention to tennis. The sport’s scoring system is notably distinct, and can sometimes be hard to grasp for newcomers. But even tennis aficionados might not know why, or how, “love” became the unmistakable callout for zero points. For this installment of NPR’s Word of the Week, we’re exploring how a word that signifies trailing behind got such a sweet name.

“Love” comes from the heart — or an egg?

It’s hard to pinpoint when the first tennis ball went over the net. Tennis is a derivative of lots of other sports, such as “jeu de paume,” a handball game played in France, said JT Buzanga, the collections manager at the International Tennis Hall of Fame museum.

Advertisement

But tennis became a patented, official sport in 1874, said Steve Flink, a journalist whose tennis coverage got him inducted into the International Tennis Hall of Fame. It has retained its unique, mysterious scoring system ever since.

“By and large, the original system has held up almost entirely,” Flink said.

The use of “love” goes back to the late 18th century, said Jesse Sheidlower, a lexicographer. But it was used earlier than that in card games such as whist and bridge. Before the term made its way to tennis, the sport favored plain old “nothing,” or “nil,” he said.

Why love in the first place, though? Historians don’t really know for sure, but there are a few theories.

The French could have something to do with it. Some historians believe “love” derives from “l’oeuf,” which means “the egg” in French. Because eggs are shaped like zeros, terms such as “goose egg” and “duck’s egg” have been used in other contexts to mean zero, Sheidlower said.

Advertisement

It’s also possible English speakers mispronounced l’oeuf as “love.” But Sheidlower isn’t convinced that’s the answer.

“It’s the French equivalent of an English expression. But since that expression doesn’t appear in French, the French word wouldn’t have been used,” he said.

To be sure, France has had a lot of influence on tennis culture, Buzanga said. For example, “deuce” or a game tied at 40 points, comes from the French word for “two”: “deux.” But he prefers another prominent theory: that “love” comes from the idiom “for the love of the game.” Even if a player hasn’t scored, it doesn’t matter, because their heart is in it. It’s the theory Sheidlower said is the most plausible, because the idiom was used by the English before tennis was popularized.

Another variation of the “love of the game” theory is that the word could have come from the Dutch “lof,” or “honor” — or the Latin “amare,” meaning “to love,” Flink said.

But if tennis’ “love” doesn’t come from a French word, the theory at least has a French sensibility.

Advertisement

“I think the ‘for the love of the game’ is kind of romantic,” Buzanga said.

“Love” probably isn’t going anywhere

Tennis used to be a sport of leisure. The style of play has changed a lot over the years; players are more athletic and competitive, for instance, Flink said. But the rules of the sport are more steadfast, he said.

“There’s this incredible, enduring respect for tradition in tennis,” he said. “Changes are not made easily.”

There has been one major change in modern history: the tie-break. Matches can go on and on because players have to score two consecutive points to break a deuce, or by two games to break a tied set. But the onset of television meant matches would have to get shorter if the sport wanted to capture a larger audience, Flink said.

Change even came for “love.” An alternative sprouted up in the 1970s, and is still used today: “bagel,” named for its zero shape, Sheidlower said. Novices may say “zero,” and insiders will understand what they mean, but they “will needle them about it,” Flink said.

Advertisement

But “love” still prevails.

“People kind of like it,” Flink said. “It’s different. Why say zero when you can say love?”

Continue Reading
Advertisement

Trending