The year 2017 can be called unlucky for the coffee giant, Starbucks chains as it is facing challenges and difficulty in attracting customers towards its stores.
xAD, a research firm calculated data and said that in the month of January, Starbucks accounted for 11-percent of restaurant foot traffic of the US, which is down from January’s 12%.
A spokesperson from xAD informed the media that it is very difficult to discover a single factor that is resulting in this decline, but at the moment, Starbucks is going through a tough tide both in terms of operation as well as the challenge to enhance its reputation as a brand.
In the month of January, Starbucks had reported that the significant transactions that are a vital measure of the traffic of customers had gone down by 2 percent in the current quarter. The company attributed this loss to the challenges and hurdles that were being offered by the ordering through mobiles. The company also said that this wave of the orders through mobiles has created bottlenecks that pour into some of the busiest stores and thus have caused the crowd to let go of a few customers.
The company also hit a blow when Howard Schultz, the Chief Executive Officer of Starbucks announced that the company has plans to hire about 10000 refugees from all across the nation in the span of the next 5 years. This announcement was made when the President, Donald Trump had passed an executive order that stated that the refugees will be refrained from the entry in the United States.
The YouGov Brand Index stated that by the month of February, the perception levels of the consumers observed a drop of two thirds as compared to the month of January. The sentiment cracker provided by Credit Suisse has concluded that the online sentiment of the Starbucks chain by the customers has reached its lowest possible mark from the year 2014.
Once before, the company had faced a negative sentiment review when they started providing the red cups and the people said that it is not as much Christmasy and festive as they are supposed to be.
Jason West, a member of Credit Suisse mentioned in a report that the overall sentiment has recovered recently, but is still at a volatile stage in these weeks. This analysis has caused the Starbucks chain to be extremely cautious of all their activities if they want to meet the forecasts of their consensus of the sales in the stores of the United States.