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

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

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

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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.

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“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.”

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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.”

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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.”

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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.

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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.

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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.”

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Shy on the dance floor? Virtual reality ‘partners’ aim to help you find your groove

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Shy on the dance floor? Virtual reality ‘partners’ aim to help you find your groove

Entrepreneur David Huang tests out a VR headset while conducting demonstrations of the social dance lesson app Dance Guru at the Augmented World Expo in Long Beach, Calif., June 17, 2026.

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Wedding season is in full swing, bringing with it a familiar sense of dread for anyone who fears the dance floor.

But relief may finally be at hand with the help of a new app, Dance Guru, and a virtual reality (VR) headset.

The social dance instruction app transports users to a spacious, digital dance studio. Waiting inside is a computer-generated coach: a handsome, male avatar wearing a shirt open to his navel. He speaks with a slightly gravelly English accent.

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“Watch me now,” he instructs at the start of a waltz lesson — which NPR tried out at the Augmented World Expo in Long Beach, Calif., an annual conference showcasing the latest developments in virtual and augmented reality.

The avatar then demonstrates a basic box step.

From there, the lesson becomes interactive. The coach tells the user to hold his hand while an electric pinging sound tracks the student’s foot placement.

“One, two, three, four, five, six,” the virtual teacher counts down.

When the user stumbles, he remains remarkably patient. “Do not worry, foundations take time. Let’s try that again. Work on grounding your steps more intentionally.”

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Solving the beginner’s dilemma

Dance Guru creator David Huang said he came up with the idea for the app a couple of years ago out of frustration.

“I always wanted to learn to dance and I was always terrible at it,” Huang said. “And I always ended up stopping midway through the lessons.”

He soon realized that many beginners hit the exact same roadblocks.

“Private lessons are too expensive, and you feel like you’re always forgetting the dance steps,” Huang said. “You cannot find a partner to dance with. So I figured maybe I can create something like this.”

The Dance Guru platform currently offers tutorials in salsa, bachata, waltz, and cha-cha, in both lead and follow modes. To make the digital instruction feel authentic, Huang used motion-capture technology to record the movements of real-life dance teachers — with their permission.

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Building on the legacy of online tutorials and video games

Dance Guru belongs to a small but growing wave of apps using VR to demystify social dance. At a nearby booth, conference attendee Victor Chen is testing out a competing app called Trip the Light. It currently offers salsa lessons, as well as freestyle options, where a user can dance with a partner without having to learn specific steps.

Trip the Light's booth at the Augmented World Expo included posters of the app's virtual instructors. Real-life performers, who gave Trip the Light permission to motion capture their movements, were used as a basis for these avatars.

Trip the Light’s booth at the Augmented World Expo included posters of the app’s virtual instructors. Real-life performers, who gave Trip the Light permission to motion capture their movements, were used as a basis for these avatars.

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“A lot of times when you’re trying to learn a choreography, it’s watching a YouTube video and you have to pause it, rewind, and play it,” Chen said. “If you were to have a virtual avatar dancing in front of you and correcting for any parts that you missed, it might be a lot easier.”

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How to have the best Sunday in L.A., according to Deidre Hall

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How to have the best Sunday in L.A., according to Deidre Hall

For half a century, Deidre Hall has taken on every kind of disaster in the drama-packed town of Salem, Ill., as a star of “Days of Our Lives.”

There was the time — actually, it happened twice — when her character, Dr. Marlena Evans, was famously possessed by the devil and even levitated.

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In Sunday Funday, L.A. people give us a play-by-play of their ideal Sunday around town. Find ideas and inspiration on where to go, what to eat and how to enjoy life on the weekends.

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Or the time a serial killer, who was actually Marlena under hypnosis, seemed to kill several beloved characters. The long-running show’s storylines have become legendary, and in March, while promoting “Hail Mary,” actor Ryan Gosling even gave Hall a shout-out, admitting he was a fan, praising the hard work of soap opera actors and calling her an “OG acting inspiration.”

But Hall’s real life in Santa Monica is much quieter than her character’s, and she likes it that way.

“When I bought my house in Santa Monica, I didn’t realize how great it would be to live near Montana Avenue,” says Hall, 78, about the popular shopping spot. Every day, she walks to the main street with her golden retriever, Riley, and enjoys Pilates, art and good food along the way. “The owners of the Farms Market even keep dog biscuits, so guess where the dog wants to go every time we walk — the Farms, of course,” she says, laughing.

When she isn’t filming the daily soap opera, which airs on Peacock, Hall enjoys raising monarch butterflies, exploring the shops and restaurants on Montana, and hosting movie nights at home with her two sons.

Here’s what a perfect day in L.A. looks like for her.

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This interview has been lightly edited and condensed for length and clarity.

7 a.m.: Breakfast and dog walk

I usually kick off my day with a protein shake, feed our golden retriever and take her out for a walk. She’s a phenomenal girl. When we adopted her, her name was Riley, but I did think about naming her after Mrs. Hughes from “Downton Abbey.”

10 a.m.: Church and garden time

After I walk the dog and go to church, I like to spend some time in my yard. I’m not a natural gardener, but I really enjoy it. I started raising monarch butterflies because my identical twin sister, who played my twin on the show, planted a butterfly garden. Monarchs are amazing because they are transitional. Every year, they travel from Mexico to southern New England, but it’s getting harder for them. Their numbers have dropped by about 80%. To help, I plant milkweed, which is what they need to survive. I buy my milkweed from the Staghorn Garden on Wilshire Boulevard in Santa Monica. Julie, who owns the nursery, is delightful and has a wide variety of milkweed. The monarchs always seem to find my garden. Julie was raising some caterpillars too, and she cared a lot about them. We talked about how important it is to help the butterflies. That’s why I do this. Sometimes I get milkweed with eggs already on it, and Julie knows her butterflies are going to a good home.

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1 p.m.: Walk to Montana Avenue for some lunch

I live near Montana and love taking long walks, going to Pilates and trying out the great restaurants nearby, like R+D Kitchen and La La Land. I’m a big fan of the waffles at the Courtyard Kitchen. Just a few days ago, I had a chicken salad on raisin bread with an Arnold Palmer, and it was delicious. It is right on Montana and has a nice outdoor seating area. It’s one of my favorite spots. La La Land always has a long line in the morning, which is perfect if you want coffee. They serve coffee, doughnuts, croissants and avocado toast. There’s plenty of outdoor seating, and you can even bring your dog.

2 p.m.: Peek inside a clock shop

There’s a small clock shop on Montana Avenue that’s closed on Sundays, but if you walk by, you’ll see all kinds of clocks — standing, table and wall clocks. The owner is great at fixing them. Once, I bought a wall clock from MacKenzie-Childs, but it didn’t work. And I was really upset because it matched everything else on my countertop. I brought it to the owner and said, “I love this, but I can’t make it work.” He fixed it right away. His name is John, but I call him Geppetto. And we all know why. He really does have a magic touch.

2:30 p.m.: Visit a neighborhood art gallery

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Ten Women Gallery is run by 10 artists, all of whom show their work there. I was drawn to some watercolors there, bought a few cards and spoke with one of the artists. She told me, “You seem to love watercolors,” and mentioned that the artist who painted them, Pamela Harnois, lives in Los Angeles and teaches nearby. I got Pamela’s name and found out she taught at the Brentwood Art School. I was so inspired by her gift that I started taking private lessons with her on Saturdays. That gallery is where I discovered my love for watercolor painting.

3 p.m.: Grab some ice cream at Rori’s

The other day, my longtime girlfriend wanted to get ice cream and told me, “We are walking to Rori’s Artisanal Creamery.” It’s a small shop on Montana near Lincoln. They make everything themselves, using local ingredients from grass-fed cows with no added hormones. The place is family-owned and probably has the healthiest ice cream you’ll find. They switch up their flavors often, but my favorite is the salted caramel.

6 p.m.: Family dinner and movie night at home

R+D Kitchen is always packed, so my sons, who are 31 and 33, do the cooking. They come over, and together we make salads and cook dinner. There’s a neighborhood grocery store called the Farms, off Montana, a small family-run place that has everything we need. Everyone knows each other there, and people bring their dogs. We try to have movie night every Sunday. Sometimes the day changes, but we always make sure to have one night a week where we cook a meal and sit down as a family. Keeping that tradition has become really important to us. My sons are great cooks, which is funny because they definitely didn’t get that from me. [Laughs]

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9 p.m.: Take Riley for one last walk and visit neighbors

After dinner, I take my dog for a walk. It’s a great way to meet neighbors. We always go around the same block. We’ve met so many people, and since she’s a golden retriever, she loves meeting everyone.

10 p.m.: News, knitting and bedtime

I am a news junkie, so I usually watch whatever is on the news before I go to bed. I have a long-standing passion for knitting. Lately, though, the news would make me drop a stitch.

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Iris van Herpen Reaches for the Stars

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For Iris van Herpen, couture is a laboratory as much as a runway. Our chief fashion critic, Vanessa Friedman, takes us inside this Dutch designer’s latest Paris show — from sci-fi-inspired gowns to an audacious attempt at a dress made of charged plasma.

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