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Starbucks sales tumble as customers reject high-priced coffee. Consumers have reached their breaking point with $6 iced coffees and lemonades at Starbucks. Total transactions at North American stores open at least a year fell 6% in the quarter. That was offset, in part, by higher prices.... It was Starbucks’ second-straight quarter of sales declines. Consumers are showing their limits at Starbucks and other chains like McDonald’s. Starbucks also faces increased pressure from rival drive-thru coffee chains — and from people opting to make their morning cup of coffee at home. With the change of Starbucks being the so called, 'Third Place' where you would meet friends, work, chill out is ending with the stores being more transactional..... The idea was that by more people spending less time in the stores but buying more coffee that this would have created more profits and possibly cost savings but the cost of coffee has continued to rise.... https://lnkd.in/eyWKTxZU

Starbucks’ quarterly sales fall — but not as much as expected Shares of Starbucks Corp. rallied after hours Tuesday after the coffee chain reported quarterly results that beat expectations, as it tries to revive sales following a year marked by cautious consumers.

If you’re aching for a Dollarita, you may have to travel a little further this year. Dine Brands Global, which owns fast-casual chains Applebee’s and IHOP, will be closing multiple Applebee’s locations across the U.S. this year. Applebee’s president Tony Moralejo revealed the exact figure during a fourth-quarter earnings call on February 29. #grow🌱 #agribusiness #supplychain #trade #usa🇺🇸 #markets #commodities #applebees🍎 #stagflation #interestrates🔥 #closures #recession2024 #ppi

While technology might be advancing at a rapid rate, the fundamentals of what consumers need still stay the same. When daily commuters are your primary customers, the requirement of quality products without waiting in the queue becomes very important. Starbucks Q2 earning call emphasises the need for them to get back to their drawing board to revisit these fundamentals. With one out of seven orders getting abandoned because of long queues and the non-availability of some of the famous products in all the stores, they got a 2% hit on their net revenue. Efficient kitchen operations and supply availability remain the key here and after solving these problems for EasyEat merchants for close to four years, I am sure technology can solve both these problems as well. Interesting to note here is that these are not esoteric problems. These are simple problems and just require someone to solve one problem at a time for long periods https://lnkd.in/g6XXnATt

The $MCD stock was flat yesterday and down .6% as of noon. The earnings call was muted by the US onion problem, which now seems to be recoverable. Hopefully, the food borne impact will pass soon. McDonald's has a very tight supply chain. MCD does have mild sales problems in its international markets, where most of its company units are located. The US situation was less dire, except for margin declines. Despite almost endless talk about US discounting, the traffic effect--not reported--seems to be very modest. A new value platform is coming as well, with more $5 offers. McDonald's did not speak of franchisee conditions, nor did any analysts. It's like they don't exist. They are noting that Franchisors mainly live off the top line, the sales line; not the profit line. McDonalds is thinking about price but has done little to increase overall value, IMO. Value is more than price. Perhaps that broader focus is the longer-term solution. #restaurants

Loyalty and Sales promotion delivering for Domino's Pizza in the US. Domino's US has demonstrated significant growth with a 5.6% increase in Q1 revenue. This growth can be attributed to the company's effective business strategy, with a particular emphasis on its customer loyalty programs and innovative sales promotions. According to their CEO, these strategies have not only contributed to an upsurge in engagement and sales but have also led to a 7% rise in share values. In addition, Domino's has achieved significant cost savings through reduced food costs and an increase in franchisee fees, further proving the effectiveness of their strategic initiatives. In a highly competitive market such as the pizza industry, Domino's success is testament to the power of customer loyalty and retention strategies. Could these tactics be replicated across other businesses with similar results? Contact Brandfire to find out more #loyaltyprograms #salespromotions #dominos

Like the update with Starbucks last week, I wanted to share the results of arguably its top competitor, Dutch Bros Coffee. The chart below represents the number of listings in each Dutch Bros. cap rate range in January 2024 (royal/lighter blue) vs today (dark/navy blue). In January 2023, there were only 44 Dutch Bros on the market. In January 2024, there were 55 Dutch Bros. on the market. Today, there are 54 Dutch Bros Coffee on the market. Although pricing has shifted from an average asking cap rate of 4.36% cap in January 2023 to 5.15% in October 2024, they have done a significantly better job managing inventory compared to Starbucks. Of the 51 sales our team has tracked this year, 1 sale was above a 6.00% cap, 3 sales were above a 5.70% cap, and 12 were above a 5.50% cap. Patrick Nutt William Wamble Jarrett Slear Jake Iacovella

When looking at which QSR chains are the most searched for by consumers, McDonald's, Domino's and Chick-fil-A round out the top three - t.ly/zjrOa

Our customers love our ALDI private label alcohol offerings – with overall sales growing double digits🍺🍷. But nationwide sales of wine and beer are down overall post pandemic. As CNN Business reports, the focus ALDI has on quality and value resonates with shoppers as they seek more affordable options. With a growing number of U.S. households shopping at ALDI, we are proving great taste doesn’t have to come with a hefty price tag. Curious about the surprising shift in booze sales? Find out how ALDI is defying the trend – bit.ly/3OkJNUI

Good to see increasing consumer pressure on the "inflation" party and getting the attention of more and more companies. As we all know, not all the pricing inflation we're experiencing is justified - more of a "why not" or a new "me too" mentality. "The average price for a grande brewed coffee earlier this year was $3.65—49% above 2020 levels, according to the market-research firm Technomic, which tracks prices at the chain." A company I used to work for always pushed back on price increases - as they should. Sharpen your pencil and scrub for efficiencies and better expense control. Not ephemeral deals and BOGO promotions - get prices down to a reasonable level. Starbucks McDonald's #retail #inflation The Wall Street Journal #qsr #restaurant #retailleadership #consumerbehavior #customerservice #finance Walmart Burger King Why Your Starbucks Frappuccino Is Half-Price https://lnkd.in/g9hK_Twa