Sure, lattes, mochaccinos, and cappuccinos are pricey, but they taste delicious. For many consumers, the great taste of coffee shop coffee made it worth the cost. But customers at Starbucks aren't so sure the tradeoff is worth it anymore.
Examining more than 420,000 pieces of feedback across the Quick, Fast, Casual (QFC) industry, including over 21,000 on Starbucks, we find:
- Starbuck's Purchase Intent1,2 is down 3% over the past six months, with most of that dip occurring over the past few months. By contrast, Dunkin' Donuts has remained within a tight range over the past six months, as did an average of other, smaller coffee chains.
- Customers increasingly see less value in Starbucks. Starbuck's Value perception3 fell 5% over the past six months, compared to just 1% for Dunkin' Donuts. However, it also fell 5% for the average of the smaller coffee chains.
- Coffee drinkers feel significantly unhappier about Starbuck's quality and taste. Starbuck's Taste perception fell 4% over the past six months, while rising 1% for competitors. Likewise, its Quality perception dipped 3% over the same time period (and 8% over the year).
- Ultimately, Starbuck's perceived drop in taste is leading inflation-weary consumers to say they plan to spend less at the coffee chain, as the value just isn't as good.
Please contact our team for a deeper look at HundredX's QFC data, which includes more than 1,200,000 pieces of customer feedback across 184 restaurant brands.
- All metrics presented, including Net Purchase Intent (Purchase Intent), and Net Sentiment / Net Positive Percent are presented on a trailing three-month basis unless otherwise noted.
- Purchase Intent reflects the percentage of customers who plan to purchase more from a specific brand during the next 12 months, minus the percentage who plan to purchase less. We find businesses that see customer Intent trends gain versus the industry have often seen revenue growth rates, margins and/or market share also improve versus peers.
- HundredX measures customer perception or net favorability towards a driver of customer satisfaction as Net Positive Percent (NPP), which is the percentage of customers who view a factor as a positive (reason they liked the products, people, or experiences) minus the percentage who see the same factor as a negative.
Strategy Made Smarter
HundredX works with a variety of companies and their investors to answer some of the most important strategy questions in business:
- Where are customers "migrating"?
- What are they saying they will use more of in the next 12 months?
- What are the key drivers of their purchase decisions and financial outcomes?
Current clients see immediate benefits across multiple areas including strategy, finance, operations, pricing, investing, and marketing.
Our insights enable business leaders to define and identify specific drivers and decisions enabling them to grow their market share.
Please contact our team to learn more about which businesses across 75 industries are best positioned with customers and the decisions you can make to grow your brand’s market share.
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HundredX is a mission-based data and insights provider. HundredX does not make investment recommendations. However, we believe in the wisdom of the crowd to inform the outlook for businesses and industries. For more info on specific drivers of customer satisfaction, other companies within 75+ other industries we cover, or if you'd like to learn more about using Data for Good, please reach out: https://hundredx.com/contact.
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