‘Starbucks for Life’ Improves US Sales, Strategy to be Copied in China
Food, Lifestyle

‘Starbucks for Life’ Improves US Sales, Strategy to be Copied in China 

The annual harbinger of holiday season since 2014, ‘Starbucks for Life’ holiday contest is here again. The contest, which started from December 3, promises five grand-prize winners a daily credit for a free Starbucks food or drink item for life.

Although termed ‘Starbucks for Life’, the contest website lists validity of 30 years. Besides this, the contest offers many additional tasty prizes: Starbucks for a year, Starbucks for six months and likewise. Other prizes include movie tickets, PlayStation 4, rewards credit and Starbucks swag.

The rules of the ‘Starbucks for Life’ contest claim that aspiring Starbucks lifers’ must join its reward program before entering. The contest can be played twice a day, by one entrant, either by making a purchase with a registered Starbucks card or the Starbucks app, or by requesting a free play via the website.

The 2018, Starbucks for Life contest witnessed some glitches on the site prior to coming into full functionality. The most common complaint trending on Twitter was site crashes.

Besides, Starbucks is introducing a new iced drink in its holiday menu as revenue goes up in the US, even for chilly beverages. The Irish Cream Cold Brew went on sale yesterday, to be available only for a limited time. A cold brew coffee mixed with Irish Cream syrup, topped with vanilla sweet cream foam and cocoa powder, it will be priced between $4.45 to $4.75, based on Starbucks’ location.

Healthier options include customising the cold foam with alternative milks, such as almond, coconut or soy. Starbucks claims that sale of cold brews has helped afternoon sales, as the firm was struggling to up sales in that part of the day. A recent report from Guggenheim Partners claims that Starbucks has been successful in attracting young people with its cold coffee drinks as customers see it as an alternative to soda and energy drinks.

Recent earnings report claims that Starbucks’ US sales surged 6 percent, with 5 percent of it due to beverages. The Irish Cream Cold Brew, is the chain’s usual array of hot and cold drinks, including eggnog latte and peppermint mocha.

Post boosting US sales via ‘Starbucks for Life’ contest, the coffee giant announced sales in China could rise by as little as 1 percent this fiscal year. In an investor conference hosted by Morgan Stanley, the Chief Financial Officer of Starbucks, Patrick Grismer said, “We have picked up the pace of new unit development, and with that comes cannibalization.”

Currently, the company is opening an outlet in China almost every 15 hours, with the idea of adding nearly 600 new cafes in 2020 to its current count of 4,125.

Also, the Happy Hour promotion will be held every Thursday in December as buy-one-get-one free deal will be put on handcrafted beverages.

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