Starbucks has reported disappointing sales figures for the second fiscal quarter, attributing the downturn to a decrease in visits from "occasional customers." CEO Laxman Narasimhan pointed out a unique challenge: an overwhelming demand during the peak morning times, primarily from rewards members using the mobile app.
The company observed a significant "order incompletion rate" due to long wait times and product shortages, affecting its revenue. Despite these challenges, Starbucks is exploring new strategies, including a pilot program to operate overnight, aiming to develop a $2 billion business within the next five years.
However, these adjustments have led the company to halve its revenue forecasts.
Source: BUSINESS INSIDER
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