Starbucks Reinvention Priorities Seem Cogent, Though Consumer Pressure Has Forced Changes

Starbucks is the largest specialty coffee chain in the world, generating $36 billion in sales during fiscal 2023. The firm’s attention to premium-quality and highly customized coffee-based beverages distinguish it from most chained competitors, alleviating pressure from quick-service peers and at-home consumption while underpinning higher pricing for what has historically been a commoditized product. This positioning looks increasingly important moving forward, as vending, single-serve coffee machines, and quick-service restaurants continue to improve at the lower end of the market.