Starbucks is making headlines as it plans to reduce the number of promotions available through its mobile app, a decision confirmed by multiple publications including CNN and The Wall Street Journal. Traditionally, the coffee chain has offered a variety of deals such as 50% off drinks and buy one, get one free offers. However, under the direction of newly appointed CEO Brian Niccol, Starbucks aims to reposition itself as a premium brand.

According to CNN, this change is part of a strategic pivot to enhance the customer experience and decrease the burden on baristas, who often find themselves overwhelmed during promotional periods. Niccol expressed his hope that by scaling back promotions, the chain could create a more refined and less chaotic atmosphere.

This decision comes amidst a worrying trend for Starbucks — sales have seen a decline for two consecutive quarters. The chain has noted a drop in visits from younger customers aged 18 to 29, prompting a reevaluation of their approach to marketing and customer engagement.

In an open letter to customers, Niccol acknowledged the challenges that Starbucks has faced in recent years, stating, ‘In some places—especially in the U.S.—we aren’t always delivering. It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.’

With the evidence suggesting that current offerings are failing to attract younger customers, many industry experts predict that the upcoming changes could lead to mixed reactions from the loyal customer base. As Starbucks embarks on this new journey, the effectiveness of these strategies in strengthening the brand’s premium identity and customer satisfaction remains to be seen.