In contrast to the same quarter last year, when they increased by 12%, same-store sales in the US decreased by 3%. Sales in China, the second-biggest market for the chain, dropped by an astounding 11%.
Over 20% of Starbucks’ (SBUX) shares have decreased this year.
In order to get customers back, Narasimhan promised to improve service times, introduce new menu items, and enhance the company’s app, mobile, and payment options.
In his letter, Schultz acknowledged that throughout his employment, he “had some quarters of financial disappointment.” For each business that makes a significant mistake, he stated, “There must be contrition and renewed focus and discipline on the core.”
Starbucks will bounce back—I’m positive about it. He claimed that Starbucks “created an industry that did not exist.” “The brand is remarkably robust, yet it’s evidently not an ordinary day.”
The company’s legal battle against the National Labor Relations Board in the Supreme Court, as well as its continuing negotiations with the Starbucks workers union, were not mentioned by Schultz.
Howard Schultz believes Starbucks needs to improve its US operations.
