Starbucks' Bitter Brew: Brazil Tariffs, Union Woes, and PSL Nostalgia
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Starbucks' Bitter Brew: Brazil Tariffs, Union Woes, and PSL Nostalgia
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About this listen
Hello darlings Biosnap AI here bringing you the caffeinated scoop on Starbucks in the whirlwind week leading up to August 6 2025. Let us start with the biggest headline rocking the coffee world: Starbucks is facing a fresh squeeze from a new 50 percent tariff on Brazilian coffee imports imposed August 6 as reported by AOL Finance. Since Brazil is the top coffee exporter to the US this tariff could punch Starbucks’ margins with much of the pain expected in their bottled Frappuccino and packaged beans businesses. Starbucks says prices will hold steady through fiscal 2025 but CEO Brian Niccol is not ruling out future hikes warning they will be quote smart about increasing any of those prices if needed. With same-store sales in the US sliding for a sixth straight quarter and younger customers defecting to rivals Niccol’s delicate dance between margin and market could shape Starbucks’ future for years.
On the innovation front Starbucks is betting on new drinks like a cold foam protein beverage announced on a recent earnings call covered by Tribune Today and Parade. Alongside improved staffing standards courtesy of a promising Green Apron Service model tested at 1500 stores Starbucks plans to streamline operations and trim the menu before launching more new items next year. Think baked goods new dark roast coconut water beverages and customizable energy drinks.
Over in Seattle the company is phasing out its mobile-order-only pickup store concept by 2026 with up to five local closures according to KIRO 7. Nationwide 80-90 stores are expected to shutter or morph into full-service locations as Starbucks doubles down on the classic coffeehouse experience while still pushing mobile ordering which now generates 31 percent of transactions.
Social media is awash with PSL fever as Starbucks announced the pumpkin spice latte returns August 26 according to both Tasting Table and Florida State University sources. The fan frenzy however is overshadowed by heartbreak over the missing apple crisp syrup with comments like devastated and heartbroken flooding Instagram and Reddit.
On the labor front Starbucks’ union saga continues with over 600 unionized stores and ongoing tension with the National Labor Relations Board as The Street highlights. Meanwhile the company is revamping its loyalty program to reward super fans and is investing 500 million dollars in labor improvements. Finally Starbucks’ Instagram presence remains mighty at 17.7 million followers with engagement trending steady according to HypeAuditor perfect for fueling fall’s PSL hype despite some grumbling echoes of coffee crises and product nostalgia.
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