The “Return to Starbucks” strategy revives the tradition of writing names on cups and the ambition to “revive” Starbucks

Starbucks has bought back 200,000 Sharpie pens, the famous American brand, with the aim of restoring the tradition of writing customers’ names on the brand’s cups. This can be considered one of the strong moves of CEO Brian Niccol to “bring this coffee chain back to its roots”. In particular, “Return to Starbucks” is the key strategy in the recovery effort, causing the “giant” coffee chain to double its marketing budget.

Starbucks Sales decreased but showed signs of prosperity under the new CEO

In the financial report in the first quarter of 2025, it has just been published by Starbucks, its SBUX shares increased by more than 8% in the next session. The company’s revenue reached US $ 9.4 billion, while the profit per share reached 0.69 USD – exceeding Wall Street forecast (US $ 9.3 billion in revenue and $ 0.66 EPS). In North America, sales at existing stores decreased by 4%, better than 4.7% more than analysts for predictions. In China, sales decreased by 6% – a significant improvement compared to the 14% reduction in the previous quarter, showing the recovery signal in this important market.

Although compared to the same period last year, the revenue has not made a significant breakthrough, but this result reflects the trend of gradual stability in the number of customers. This is also the first quarter under the management of the new CEO Brian Nicolo, showing that the CEO is taking strategic steps in the right direction to restore Starbucks. He also said: “We still have a lot of work to improve business results, but strategic investments in personnel, technology, marketing and store systems in this financial year will help Starbucks strengthen the position. And ready for sustainable growth. ”

It is known that the positive signals in the business situation of Starbucks are probably contributed significantly by a strategy called “Back to Starbucks” – the plan to “re -introduce” the Brand, bring Starbucks back to the other The core values ​​have made their differences.

Strategy “Back to Starbucks” – double the marketing budget to “revive” the brand

In an effort to bring the brand back to the golden age, Starbucks is doubling the marketing budget calculated according to the percentage of revenue, after spending about US $ 600 million by 2024. Again Starbucks ”is built on 3 main areas: enhancing customer experience, minimizing price incentives and expanding customer files. Since then Starbucks has returned to the core of the business “taking user experience is the focus”.

1 – Traditional revival of writing names on glass and personalizing customer experiences

Writing the name of the customer on the icon glass of Starbucks has become part of the brand’s popular tradition. But by 2020 – in the peak period of Covid 19 – the company decided to suspend this activity “indefinitely” causing many regrets for users. Until the time of CEO Brian Nicolo, the general manager said: “We will continue to write the guest name and small notes on the cup” and believe this will contribute to attract customers to return to Starbucks.

Starbucks has invested in a promotional Video called “Not my name”, cooperating with Agency Anomaly. On the famous song “That’s not my name” by The Ting Tings, the brand has cleverly conveyed the message “Each glass brings a small joy to you.” The campaign quickly received positive response from customers. Notably, on Tiktok, the trend of sharing unexpected messages from Starbucks suddenly became popular, with a series of viral videos that attracted thousands of views. Not only writing names and messages, some employees are also Creative by drawing pictures or writing quotes from famous movies and meme, such as the dialogue from  The Notebook.

Not only focusing on marketing, Starbucks also restores some familiar utilities at the store. Accordingly, from January 27, employees will ask customers about how they want to enjoy drinks – take away or use on the spot. Those who choose to stay in the shop will be served in ceramic cups, glass or personal glasses from home, bringing a more friendly experience to the environment. In addition, Starbucks also implements free refill policies for guests using glasses on the spot. These customers can get more free coffee or tea at the same time, as long as they bought the original drink in porcelain cups or reuse options. However, Starbucks emphasizes that this offer only applies to the first buyer with a glass on the spot.

At the same time, Starbucks also brought back some classical spice drinks and expanded personalization options. Customers can adjust drinks according to preferences with cream options, milk and sweeteners. These changes are within the strategy of “Back to Starbucks” published in early January, in order to reshap the cafe space becomes closer and more attractive to customers.

2 – Review price strategy: minimize discounts – abandonment of additional milk additional types

One of the important changes in Starbucks’s new marketing strategy is to reduce preferential programs, towards a more transparent and sustainable pricing model. According to CEO Brian Nicolo, the application of continuous discounts in the past is not only ineffective but also affecting high -end brand images, creating more pressure on the dispensing staff and reducing the consistency in the experience. client. “We want to make sure that every time you visit Starbucks to bring real value – with clear prices, quick service and more uniform experience,” Brian Nicolo said.

The most expected thing for loyal fans is that Starbucks has officially eliminated extra money for vegetable milk, in the immediate future, it was deployed with stores in the US and Canada. Instead, customers have to pay an additional $ 0.80 (equivalent to 20,000 VND) when replacing cow’s milk with soy milk, oats, almonds or coconut as before, from November 7, 2024, Starbucks It has completely free these alternative milk options, helping customers easily customize drinks according to personal preferences without incurring costs. The new CEO also emphasized: “The ability to personalize beverages is the core element in the Starbucks experience. This is only one of many changes to optimize the value for customers while maintaining the quality of service. ”

Besides, Starbucks intends to reduce about 30% of the number of dishes in the menu to optimize operations and focus on core products. Although not directly a discount program, the free movement of vegetable milk is also consistent with the Starbucks strategy in simplifying pricing, bringing practical values ​​without affecting profits. To increase the level of identity, Starbucks has strongly promoted new policies through social networks, Email marketing and Mobile applications, especially targeting loyal customers and those who often visit the shop.

3 – Change algorithm – Optimize service time – improve the experience at the store

Starting from the situation of many Starbucks stores, there is an overload when having to handle continuous orders online, making the order waiting for the pile on the counter and the guests must queue for a long time at the payment counter, Starbucks is deploying a technique The new math helps to arrange mobile orders more appropriately, with the goal of serving customers in the shop within four minutes. Within a year and a half, Starbucks is expected to install a digital menu table at all stores. These menu tables will display a more linent menu list, while providing easier custom options for customers.

Not stopping there, Starbucks also upgraded the direct experience at the store by changing the space. The company will add new seats to enhance the service space and bring the spice counters back so that customers can freely personalize the experience of enjoying coffee. Notably, Starbucks also requires customers to buy goods when using the space of the restaurant with the purpose of reducing the situation of unreasonable occupation and increasing revenue from customers really in need. These changes show that Starbucks is adjusting the strategic skillfully to balance the customer experience and the efficiency of operation, creating a comfortable coffee space, while ensuring business benefits.

4 – Reform the support team for sustainable development

“Returning to Starbucks” does not stop at external changes, CEO Brian Nicol has strongly performed the reform right in the organizational structure and operation of Starbucks. In particular, strengthening the decision and responsibility is one of the top priorities. Each work needs a clear leader, have the right to make decisions and take specific responsibility. Besides, simplifying the process and focusing on the core priority is essential to avoid overlapping and ensuring that resources are reasonably distributed. According to the evaluation of the new General Director, the current Starbucks operating system has many ranks, with many roles mainly focusing on coordination of work instead of creating direct value. The streamlining the apparatus, choosing “the right people – the right job” will help increase flexibility, improve speed and efficiency.

Conclusion:

The strategy of “returning to Starbucks” is not only a traditional revival to write the name on Ly, but also showing the ambition to recreate the brand’s coffee experience. Thereby, Starbucks has returned to its “roots” – taking customer experience as the center. With positive signals in marketing and business activities under the CEO of NICCOL, Starbucks can expect in 2025 to prosper ahead.