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What made Starbucks an empire before its fall
In this article, I analyze the operational drivers behind the decline (mobile ordering, in-store congestion, excessive standardization) and the recovery levers of the “Back to Starbucks” program.
Retrospective on Back to Starbucks
As discussed in the previous article, Starbucks experienced remarkable success thanks to its strong experiential marketing, offering consumers a genuine experience. Through excellent customer service, impeccable product quality, and its human-centered approach, Starbucks was able to grow exponentially on an international scale, reaching 38,000 stores worldwide in 2024 (Arcega-Punzalan, 2025).
Things began to deteriorate in the early 2020s (Us, 2024). Coffee prices increased, mobile orders stagnated, and wait times grew longer (The Wall Street Journal, 2025). Starbucks gradually lost its authenticity, and the in-store experience no longer carried the charm it once had.
One of the causes behind this decline was the inefficiency of mobile ordering. Preparation times were inaccurate, and the influx of digital orders led to in-store congestion.
1/8
(Starbucks quote in The Wall Street Journal, 2025)
customers abandoned their orders due to long wait times
Today, the coffee market is far more democratized. Starbucks is no longer the only premium coffee option, and it has become easy to find better alternatives just around the corner (J. M. W. Us, 2025). In an effort to address the issues that have damaged the brand’s reputation, Starbucks launched its “Back to Starbucks” program, aimed at reworking the operational model of its franchises (The Wall Street Journal, 2025). Among the initiatives designed to restore the brand’s iconic atmosphere, Starbucks plans to bring back handwritten names on cups.

In the same spirit, the company aims to restore a sense of conviviality in stores by reintroducing chairs, tables, and couches, as well as simplifying its menus. The famous condiment bars—designed to reduce part of the baristas’ workload while giving customers a sense of control—are also expected to return. These initiatives would allow baristas to reconnect with customers and help restore the feeling of a “third place”—the space between home and work (J. M. W. Us, 2025).

Utilisation de l’IA
In September 2025, Bean (2025) reported on Starbucks’ initiatives to further integrate artificial intelligence into its operations. AI would be used to improve access to and quality of data, while also acting as a driver of performance and innovation. The goal would be to anticipate needs, simplify work, and personalize the customer experience. One example would be the use of predictive models in inventory management and workforce planning. On the customer experience side, consumers would receive suggestions more closely aligned with their preferences.
List of Starbucks’ uses of AI (Bean, 2025):
- Staffing models that support the Green Apron Service by ensuring the right partners are in the right place at the right time.
- Channel prioritization algorithms that optimize service time and customer experience.
- Smarter food availability forecasting models to improve inventory accuracy for customers and partners.
- Targeted marketing campaigns leveraging machine learning and recommendation algorithms to personalize digital ordering experiences, enabling personalization and emotional connection.
- Algorithmic models and external data partnerships to optimize pricing strategies.
- Voice of Customer and Partner listening tools that help Starbucks better understand and respond to feedback and sentiment.
- Enhanced analytics for store development and operations, enabling better tracking, analysis, and action on how Starbucks shows up in local communities, including advanced test-and-learn analytics to uncover key performance drivers.
- Enterprise data readiness for generative and agentic AI, ensuring Starbucks’ infrastructure can securely, scalably, and effectively support next-generation capabilities.
Starbucks’ intention in implementing AI would be to reduce wait times, optimize human and material resources where they are most needed, and personalize its approach toward consumers. This initiative could clearly support the “Back to Starbucks” reconstruction plan—but what about the human element?
Human
Layoffs
Starbucks’ actions clearly reflect its turbulent situation, caught between operational reality and strategic vision. The company maintains plans to continue expanding by adding 17,000 new locations by 2030 while cutting costs by $3 billion (Lucas, 2023). For 2026 alone, Starbucks plans to add 1,000 new locations (Brown, 2025).
Employee Criticism
The principles of employee engagement outlined in the Green Apron Book are built on a fundamental idea: employees must feel respected and valued. Compensation naturally plays a major role, as in 2025 Starbucks employees were still gathering to negotiate contracts that better respect their working conditions (Bloomberg, 2025). It becomes difficult to avoid a “bare minimum” philosophy when employees do not feel respected—precisely the opposite of what the company expects from them. Paradoxically, Starbucks eliminated nearly 2,000 jobs in 2025, a move that reflects a fragile financial health (Samfiru Tumarkin LLP, 2025).
Conclusion
Since the appointment of the new CEO, Brian Niccol, in September 2024, Starbucks’ stock price still does not signal strong financial health at the time of writing (January 2026). In terms of strategy, some indicators nevertheless appear to be improving. Beverage preparation time is now under four minutes for 80% of orders, and menus have been reduced by 25% (Brown, 2025). However, the time spent in stores has dropped from ten minutes per customer to one-third of that—approximately three minutes (Brown, 2025). The wave of layoffs therefore “makes sense” to some extent, given the company’s difficulty in entering a growth phase. Despite these challenges, Starbucks appears to remain aligned with and committed to its “Back to Starbucks” strategy. The remaining question is whether its implementation will truly resonate with consumers.
Sources :
Arcega-Punzalan, C. (11 juillet 2025). How Starbucks Market Dominance Strategy Conquered the Global Coffee Industry. AMW Group. https://www.amworldgroup.com/blog/starbucks-market-dominance-strategy
Bean, R. (2025, 11 septembre). How Starbucks is using data and AI to deliver joy and connection to its customers. Forbes. https://www.forbes.com/sites/randybean/2025/09/11/how-starbucks-is-using-data-and-ai-to-deliver-joy-and-connection-to-its-customers/
Bloomberg. (2025, November 13). Starbucks workers push for fair contract, Eisen says [Video].
https://www.bloomberg.com/news/videos/2025-11-13/starbucks-workers-push-for-fair-contract-eisen-says
Brown, R. (29 octobre 2025). Starbucks Customers Are Exiting Fast, Not Lingering Over Coffee. Bloomberg. https://www.bloomberg.com/news/articles/2025-10-29/starbucks-sbux-is-for-quick-service-not-hanging-out
Lucas, A. (2023, November 2). Starbucks unveils plan to add 17,000 locations by 2030, cut $3 billion in costs. CNBC. https://www.cnbc.com/2023/11/02/starbucks-unveils-expansion-plans-cost-cutting.html
Samfiru Tumarkin LLP. (2025, September 30). Starbucks layoffs Canada: September 2025 job cuts & severance rights. https://stlawyers.ca/blog-news/starbucks-canada-layoffs-and-severance-pay/
The Wall Street Journal. (2025, 20 février). Starbucks CEO Breaks Down the Company’s Biggest Problem and How to Fix It | WSJ [Vidéo]. YouTube. https://www.youtube.com/watch?v=Mp_6X8Gbbe4
Starbucks Workers Push for Fair Contract, Eisen Says (13 novembre 2025). Bloomberg. https://www.bloomberg.com/news/videos/2025-11-13/starbucks-workers-push-for-fair-contract-eisen-says
The Wall Street Journal. (2025, February 20). Starbucks CEO breaks down the company’s biggest problem and how to fix it [Video]. YouTube. https://www.youtube.com/watch?v=Mp_6X8Gbbe4
Us, J. K. W. (2024, août 20). Can Starbucks& # 039 ; new CEO revive the company ? The Week. https://theweek.com/business/starbucks-new-ceo-business
Us, J. M. W. (2025, 24 février). How did Starbucks & # 039 ; fall from grace& # 039 ; ? The Week. https://theweek.com/business/starbucks-coffee-low-sales-fall-from-grace
