Starbucks just announced plans to give 150 nationwide stores the ax in 2019, blaming the bold move on recent dips in sales. According to a press release, underperforming stores in oversaturated markets will be getting the boot—meaning, if you live in a big city, you may not see a Sbux shop on every block come next year.
“We must move faster to address the more rapidly changing preferences and needs of our customers,” Kevin Johnson, Starbucks President and CEO, said, adding that the 1-percent growth in sales anticipated for 2018 to 2019 is not a reflection of the brand’s potential. “Over the past year, we have taken several actions to streamline the company, positioning us to increase our innovation agility as an organization and enhance focus on our core value drivers which serve as the foundation to re-accelerate growth and create long-term shareholder value.”
Is health to blame?
The sluggish sales are partly due to a three-percent decrease in Frappuccino sales since last year. “These are oftentimes more indulgent beverages—higher in sugar, higher in calories,” Starbucks CEO Kevin Johnson said during a presentation to investors according to the New York Post, adding that health and wellness awareness is probably to blame for the decline.
“That comes as no surprise,” chimes Jeff Csatari, author of the 14-Day No Sugar Diet. “Look at the coffee shop’s three newest frapps; They boast 350 to 420 calories per Grande and no less than 50 grams of sugar—that’s equal to and more than daily allowance of the sweet stuff!” Csatari understands the importance of a low-sugar diet, as he was able to reverse his pre-diabetes diagnosis by cutting out added sugars from his diet. Read more about the benefits of cutting out added sugars in his post, 8 Ways Cutting Out Added Sugars Changed My Life, and if you’re ready to take the leap, pick up a copy of his book, 14-Day No Sugar Diet.
To address consumer changes, the Bux plans to accelerate “product innovation around core beverages while leveraging the growing tea and refreshment category, as well as consumer behavior trends towards health and wellness.” While specific plans to adapt to java drinkers’ health-centric preferences are still up in the air, we’re hopeful that the coffee giant will add more Starbucks Items that Diet Experts Love to its permanent menu.