Business Wars Starbucks' Bitter Brew | Back in Black | 2
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May 14, 2025 In 2023, Starbucks faces mounting pressure as employees push for unionization while competitors like Dunkin' and McDonald's seize market opportunities. Internal tensions rise as Howard Schultz turns against his successor amidst declining sales. The podcast dives into the struggles of Starbucks’ identity, exploring employee dissatisfaction and the challenges of restoring the brand's community feel. Leadership conflicts arise, and a new CEO proposes a vision to revitalize customer experience, all while navigating fierce competition and operational hurdles.
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Historic Starbucks Strike
- Starbucks workers staged the biggest strike in company history on Red Cup Day in 2023.
- They protested understaffing and low pay despite the holiday promotion.
Schultz and the Third Place Vision
- Starbucks struggles because its brand and store experience declined from a community coffeehouse to a high-volume chain.
- Founder Howard Schultz returned to revive the "third place" concept that originally defined Starbucks.
Changing Consumer Coffee Preferences
- Starbucks faces competition shifting to sweeter, cold coffee drinks favored by younger consumers.
- Coffee preferences are evolving away from classic hot, dark roasts Starbucks pioneered.