Starbucks, Hoping for Growth

The American business community has become somewhat captivated by the prescription of freshly brewed CEO, Brian Niccol, for fixing the ailing Starbucks business. The restoration plan hinges on a combination of raising operational performance and nostalgia-based marketing (“Back to Starbucks”).

Loss of share is commonly due to poor brand performance. It is less common for a business to be losing share as a consequence of both brand deterioration and poor operational performance. Starbucks as of March 31, 2025 has shed foot traffic for five consecutive quarters and has achieved that dubious distinction. For this discussion, let’s set aside operational performance to just focus on brand and marketing.

Based on three decades of Forethought data, when a brand’s reputation is waning, well-constructed brand restoration generally takes 18 to 24 months if the rebuild is a quality-based proposition, and if the rebuild is a price-based proposition, 12 months. That assumes the proposition is soundly based on category drivers of choice.

The Starbucks marketing focus has been primarily based on two nostalgia elements; that is, the reintroduction of the "third space" concept of welcoming customers back to a comfortable coffeehouse environment and second, personal connection with the barista evidenced by handwriting the customers’ name or other personalized message on cups.

Does Nostalgia Drive Consumer Behavior?

Tressie Lieberman was appointed as the first global chief brand officer at Starbucks and commenced on November 4, 2024. One of her first actions was to undo the appointment of the agency of record, WPP made just a few months earlier and appoint Anomaly to handle its U.S. creative business.

The first work from Anomaly was the creative ‘Not My Name.’  ‘Not My Name’ first aired on linear TV on 27 January 2025 during the Kansas City Chiefs vs. Buffalo Bills NFL game. The spot centered on the Starbucks reintroduced practice of writing customers' names or motivational messages on cups.  According to the trade press, ‘The ad emphasizes personal connection and encouragement, aligning with Starbucks' commitment to fostering community and positivity.’

Please see Starbucks “Not my name”