Starbucks faced a challenging 2024, marked by slowing growth, increased competition, and evolving consumer preferences. The company struggled to maintain its momentum from prior years, grappling with inconsistent foot traffic and mixed financial results. A significant turning point came in September with the appointment of Brian Niccol as CEO. Niccol, who previously spearheaded Chipotle's impressive turnaround, brought a fresh perspective and a renewed focus on operational efficiency and customer engagement. His efforts are beginning to shape Starbucks’ strategy, but the results remain a work in progress.
Starbucks entered 2024 with modest growth in foot traffic, particularly in the early months of the year. January and March saw y/y increases of 4% and 4.6%, respectively, boosted by strong holiday momentum and new product offerings. However, the growth began to taper off as the year progressed, with key months like September and October showing declines of about -3% for both months. November saw a slight rebound with a 0.6% y/y increase, but December capped the year on a disappointing note, with traffic falling by -7.4% so far (with data up to December 19).

The uneven foot traffic reflects the broader challenges Starbucks faced in aligning its product offerings and in-store experience with shifting consumer behavior. Niccol’s efforts to address these issues, including streamlining operations and emphasizing promotion, were most visible during the company’s signature Red Cup Day in November.
The Red Cup Day Effect
Red Cup Day, Starbucks’ annual holiday promotion where customers receive a reusable holiday-themed cup with their purchase, has historically driven significant excitement and traffic. In 2024, the promotion demonstrated its enduring power, albeit with some caveats.
Foot traffic during the week of Red Cup Day (November 14, 2024) experienced notable increases compared to the prior week. Traffic peaked on Thursday, the day of the promotion, with an 8% increase. However, the boost was short-lived, as traffic gains dissipated quickly in subsequent days as seen in the graph below.

Advan’s data suggests that while Red Cup Day successfully drove a significant one-day spike in traffic, Starbucks struggled to sustain the momentum throughout the week. This underscores a broader challenge for Niccol and the company: converting promotional success into long-term customer loyalty and consistent in-store visits.
Challenges and Opportunities
Under Niccol’s leadership, Starbucks has begun rolling out initiatives to address its performance challenges. These include simplifying the menu to improve operational speed, enhancing the digital ordering experience, and expanding loyalty program benefits. Additionally, the company has been exploring partnerships and localized marketing efforts to reinvigorate its brand appeal.
The relative success of Red Cup Day highlights the potential for Starbucks to leverage its established promotional events to engage customers. However, sustaining engagement beyond these events will require a more cohesive strategy that blends product innovation, improved in-store experiences, and personalized customer outreach.
Starbucks in 2024 has been a story of transition, with the company navigating through challenges under the leadership of its new CEO, Brian Niccol. While initiatives like Red Cup Day have provided glimpses of what’s possible, the overall performance underscores the need for a more consistent and sustainable approach. With the foundation of Niccol’s strategic vision, 2025 could prove to be a pivotal year for the iconic coffee chain as it strives to reclaim its position as a leader in the global marketplace.