As Starbucks shifts into a it’s new business model, more and more coffee connoisseurs are finding themselves to become customers. photo credit by Joshua Trujillo/Starbucks
As consumer trends shift, the world’s biggest coffee brand shifts with it.
Starbucks is far more than just a coffee shop; it’s an international icon. This brand proudly holds the title of the world’s largest coffee chain with an immensely reputable name, and, recently, the business announced a massive shift towards a revamp of the menu and business model of their stores. This bold move is said to align better with customer wants, industry tends, and environmental priorities. These changes have been phased into stores nationwide throughout the 2025 year, with almost all stores having shifted now.
The first major change within the Starbucks world is their menu revamp. Within this, the chain has put an emphasis on three main objectives: health, sustainability, and customization. Through this, Starbucks has introduced a new and expansive range of plant-based beverages that include soy, almond, and oat milk as their defaults instead of having to request for those to be switched in, with dairy now being offered by request. Furthermore, the company has launched a new line of “functional beverages,” drinks that are infused with different vitamints, probiotics, and more in order to appeal to the ever evolving consumer market that is driven by wellness trends. Additionally, Starbucks is cutting down on some of their sugar-fueled beverages such as the Frappuccino and dessert offerings. As the company continues to follow consumer trends, Starbucks follows a smart and adaptive approach. Recently, internal research done by Starbucks, revealed a 25% increase in demand for “better for you” choices amongst their biggest customer demographics, which are Millennials and Gen Z aged individuals.
Amongst other things, the biggest and most notable change in Starbucks is their shifts within operational strategy. The company is looking to draw back from their emphasis on dine-in cafe options and put all of their focus into their mobile ordering through their app and their drive-thru locations. This is a major shift for the company and their cafes in general. In the past, Starbucks has served as a place for those looking to get coffee, but also stay and work, meet, or just pass the time. After the pandemic, there was a significant shift towards mobile ordering which has led 70% of Starbucks transactions to happen outside of the stores via digital channels. The former CEO of Starbucks emphasized, “We are reshaping Starbucks for the future – this means meeting customers where they are: on-the-go, digitally connected, and seeking healthier, more sustainable choices.”
The new CEO of Starbucks, Brian Niccol, has a firmly rooted belief in the standings of the company and what it represents. His biggest personal emphasis is being put on the labor and how these tasks are carried out. When he took over as CEO last September, he began to work towards the goals of improving the customer experience through investing in labor as opposed to equipment.
Beyond labor, sustainability is at the forefront of their remodel. The company is looking to cut their energy, water usage, and waste in half by 2030. The primary way that the chain is looking to meet this goal is through reusable drink programs. The company has rolled out hundreds of unique and stylish reusable cup designs that have been around for years and end up simply sitting on shelves. Furthermore, the company is offering monetary incentives for customers bringing their own mugs or cups, while also introducing completely compostable packaging materials throughout their stores.
On the technical side of things, analysts do see a potential for long-term gains from these shifts, however there are large short term risks. The first major dilemma posed would be that cutting down on the many ultra profitable dessert drinks, and investing in labor and store design will come with a heavy price. Despite the risks, Starbucks is confident that the changes will only strengthen the brand and increase loyalty over time, benefiting everyone.
