Starbucks' Trial: The Disappearance of 1.1 Trillion Yen in Market Value - The Equation of Starbucks' Backlash and Customer Attrition

1. What is Happening to the "World's Leading Coffee Chain"?

Starbucks, which elevated a single cup of coffee to a "lifestyle" and built a network of over 40,000 stores with an annual revenue of $36 billion, seems to be at a turning point in its peak story. The popular economic series "Was kostet die Welt?" by the German newspaper Frankfurter Allgemeine Zeitung (FAZ) warned in the summer of 2025 that Starbucks is facing its **"toughest phase since the 2008 financial crisis."** The article highlights the reality behind the glamorous figures of "$36 billion in sales and 130,000 customization options," where customer attrition, high costs, and brand fatigue are occurring simultaneously.faz.net

2. Numbers Indicating a Slowdown

While the "apparent" sales remain flat, there is a serious trend of negative same-store sales growth for four consecutive quarters. The January earnings report showed a same-store sales decline of 4.6% and an operating profit decline of 26%, avoiding a fall into the red but falling short of market expectations. New CEO Brian Niccol decided at the end of February to cut 1,100 headquarters staff, the largest in history, and freeze several hundred positions, declaring that the organization would be "slimmed down" to achieve "wait times of under four minutes in stores."reuters.com

3. The Shock of "30% Menu Reduction"—A Return to the Founder's Philosophy

The core of the brand fatigue pointed out in the FAZ article is that the "130,000 variations" weapon simultaneously became a shackle on operations. Niccol, from the outset of his tenure, announced a 30% menu reduction, the revival of self-service condiment bars, and the reintroduction of ceramic mugs, aiming to reconstruct the "third place" where baristas and customers can converse. The American magazine The Week noted that "the convenience of app orders has taken away the sense of community," analyzing that half of the customer attrition is due to a 'distance of the heart.'theweek.com

4. The Risk of Dependence on China and the Fierce Pursuit of Rivals

Even in China, which was a pillar of its global strategy, dark clouds are gathering. Although it announced plans to open one store per day, the local chain Luckin Coffee has overtaken it in store count. The combination of rapid expansion and a slowdown in demand post-lockdown has forced a significant review of Niccol's plans. Sales per store have been negative for two consecutive years, and the brand premium has collapsed amid a discount battle.theweek.com

5. The Spread of "#BoycottStarbucks" in the Era of Social Media Backlash

More damaging to the brand than the numbers was the boycott movement originating from social media.

• In October 2023, a union account posted "Solidarity with Palestine," which was later deleted. The company filed a trademark infringement lawsuit, and the union counter-sued for defamation—leading to the hashtag #BoycottStarbucks spreading globally, wiping out $11 billion in market capitalization in two months.en.wikipedia.org

• In 2025, videos related to "Starbucks boycott 2025" surpassed 100 million views on TikTok, with short videos of young people protesting in front of stores holding reusable cups going viral repeatedly. Memes comparing "$9 Latte vs $0 Home-brew" created by generative AI also spread, accelerating price criticism.tiktok.com

• On Reddit, posts justifying the boycott due to the "high prices + DEI setback + Palestine lawsuit" triad were ranked high. Some counter-opinions, noting that "Starbucks is not even on the BDS list," also emerged, polarizing the community.reddit.com

6. The "List of Dissatisfaction" from Customers—It's Not Just High Prices

When aggregating the visible voices on social media, dissatisfaction converges into four categories: 1) price hikes, 2) delays in receiving orders, 3) uniformity of taste, and 4) half-hearted environmental responses. An article in Allrecipes' food trends section criticized the **"opaque compostable cups"** being piloted as "not Instagrammable," receiving more angry reactions than likes.allrecipes.com

7. The Sharp Decline in Brand Value and the Strategy to Restore "Trust"

According to Forbes Austria, Starbucks fell from 48th to 52nd in Interbrand's global brand rankings and recorded the largest drop from 15th to 45th in Brand Finance. In the reputation tracker "Reptrak," it fell by 14 points over four years.forbes.at

Niccol has labeled the strategy as "Back to Starbucks," setting three pillars: 1) improving store operations, 2) moving away from excessive reliance on seasonal limited drinks, and 3) strengthening employee engagement. However, as the FAZ article also points out, "trust cannot be restored by marketing alone." Unless the management truly prioritizes "people and place," recovery will not precede the numbers.faz.netforbes.at

8. Three Key Points Seen by Experts

1. The Truth of the "Third Place" Reboot

   • Returning to customer seating is closely linked with the risk of increased fixed costs. Can they increase turnover by reducing the food menu and initiate community events?

2. The Two-Front Strategy in China and North America

   • In China, where local competition is strong, there is a price and speed competition, while in North America, there is a brand experience competition. The bifurcation of strategies is inevitable.

3. Rebuilding Labor Relations

   • Ignoring the "voice of employees," which is the root of the boycott spark, will undermine any reconstruction plan from the ground up.

9. Signs of Hope Indicated by Data

The stock price rebounded 28% from the bottom at the end of 2024. Investors are optimistic, saying, "If they shift towards focusing on experience, improvement is possible within a few quarters." Analyst Chris O'Cull states, "The effects of extended business hours and reduced wait times will become apparent within the year."reuters.com

10. Conclusion—Towards a Redefinition of "Everyday Luxury"

What the public seeks from Starbucks is not just a caffeine supply. It is "a place that is neither home nor work," "a small reward," and "a company that shares values." Whether they can return to that origin is the condition for regrowth. In the era of social media, brands are as sensitive to "empathy costs" as they are to financial and time costs.

The next move for CEO Niccol is not to create "buzz" like an olive oil latte, but to reconstruct a "place for dialogue mediated by coffee" from the perspective of employees and customers. While the roots of the crisis are deep, the fact that "enthusiastic fans" remain the greatest asset has not changed. Starbucks is now in a phase of showing those fans a "reason to return."