Starbucks reported one other gross sales decline in Q3 2025, however CEO Brian Niccol stated latest advertising and marketing investments have pushed a notion increase amongst millennial and Gen Z customers.
The Numbers
2% — decline in world same-store gross sales, a steeper drop than anticipated.
4% — internet gross sales improve year-on-year to $9.5 billion, surpassing its projected $9.29 billion.
34 million — 90-day lively members now utilizing the Starbucks Rewards program globally to earn and redeem factors in retailer.
Watercooler Discuss
Starbucks is within the midst of executing its strategic “Again to Starbucks” turnaround plan targeted on reclaiming its place in espresso tradition and modernizing operations to revive gross sales.
Although the espresso big simply posted its sixth straight quarterly gross sales decline, its elevated funding in advertising and marketing, which Niccol stated in January could be near double final 12 months’s, is yielding fruit.
In January, Starbucks ran a nationwide marketing campaign with newly appointed artistic company Anomaly, set to the tune of “That’s Not My Title” by the Ting Tings, which targeted on its well-known personalised cups.
Across the Tremendous Bowl in February, the pair debuted “Good day Once more.” Soundtracked by AC/DC’s “Thunderstruck.” The Large Recreation-adjacent push was hailed by the model as “a declaration of a return to our roots with a celebration of espresso and connection,” and the artistic highlighted the barista rituals that make Starbucks distinctive. The Monday after the Tremendous Bowl, Starbucks prolonged the marketing campaign by providing free coffees to members of its Starbucks Rewards membership.
Niccol stated these advertising and marketing strikes, coupled with operational modifications in-store and on its Rewards app, are altering model perceptions. “Clients are liking our advertising and marketing and noticing that our velocity, hospitality, and accuracy are enhancing,” he stated, including buyer connection scores are up whereas complaints are down since final quarter.
“Buyer worth perceptions are close to two-year highs, pushed by good points amongst Gen Z and millennials, who make up over half our buyer base,” he added.
Niccol, who beforehand helped reinvigorate Chipotle’s enterprise, stated Starbucks had “fastened quite a bit and accomplished the exhausting work on the exhausting issues to construct a powerful working basis.” He added: “Based mostly on my expertise of turnarounds, we’re forward of schedule.”
Key Quote
“In early 2026 we’ll launch important improvements in our Starbucks Rewards program, addressing key buyer suggestions and introducing thrilling new options designed to develop loyalty, model love, and engagement,” stated Niccol.
“We have now an unbelievable digital enterprise and in 2026, we’ll lean additional in with a brand new Starbucks app and important enhancements to cell order and pay that can additional enhance our skill to ship an ideal buyer expertise at pickup as we work to show across the U.S.”
