Part 10/13:
Inflation has compounded these issues, with food and drink costs skyrocketing due to tariffs and poor harvests. While consumers previously justified premium prices through added benefits—free Wi-Fi, cozy environments—these perks are less impactful when more people are ordering pickup and consumption occurs in their cars or at home.
Losing the Social Edge and Facing Competition
In essence, Starbucks has drifted from being a social, communal experience to a convenience-driven fast-food model. Independent cafés, emphasizing artisanal quality and personalized service, have become more trendy and socially acceptable. Meanwhile, the company’s reputation has been marred by scandals around employee union busting and high prices.