Starbucks ushered in the 2024 holiday season with a festive menu featuring fan-favorites like the Peppermint Mocha and the new Iced Sugar Cookie Almond Milk Latte. 

Still the festive launch comes amid challenges for the coffee giant, which has seen declining revenue and heightened competition from smaller shops and international chains.

Starbucks reported a 3% revenue drop in Q3 2024, with factors like inflation, higher labor costs, and rising competition contributing to the slump. 

Fewer customers are visiting stores, particularly in urban areas where cost-conscious consumers are opting for cheaper alternatives. Despite this, the company focused on its holiday offerings to boost foot traffic, including holiday cups, a revamped Sugar Cookie Latte, and a Holiday Bliss Barista Kit for home brewing.

Rachel Wang, Starbucks’ Senior VP of Global Marketing spoke with Northeast Valley News and   emphasized the importance of innovation and customer loyalty. Especially with customer favorites and specialty items during seasonal promotions.

“We’re always looking for ways to bring warmth and joy to the season,” Starbucks is also leaning on loyalty programs, drive-thru expansion, and sustainability initiatives to rebound from the revenue dip.

Local Starbucks managers told Northeast Valley News that corporate expectations have intensified, with pressure to push app promotions like bonus star deals to drive traffic and focus on attracting new customers while retaining loyal patrons. 

“It’s been busy, but we haven’t seen the same traffic from new customers,” one local Starbucks employee told Northeast Valley News. 

Despite the obstacles, Starbucks remains optimistic about its recovery, relying on its strong brand and loyal customer base.  Assessment of the 2024 holiday season will be pivotal in determining whether loyalty to Starbucks remains a competitive landscape.