Economy

Starbucks makes a bold move beyond coffee

December 21, 2025

Starbucks makes a bold move beyond coffee Fernanda Tronco Sun, December 21, 2025 at 11:03 PM GMT+5:30 5 min read SBUX AMZN Starbucks has faced mounting challenges after decades as a seemingly untouchable coffee giant, in part due to its heavy focus on transactional growth at the expense of loyal customers who helped make it an iconic brand. "In trying to scale faster, Starbucks has drifted away from the emotional core that built its global following," Amazon Business Analyst Saswat Sidhant Prusty told Coffee Intelligence. External pressures, including economic uncertainty, rising operational costs, a slowdown in consumer spending due to inflation, and ever-evolving industry trends, have also impacted the company's overall financial performance, mirroring the struggles faced by the broader foodservice sector.

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Key Highlights

After learning from its missteps, Starbucks has begun implementing significant changes across its business through the "Back to Starbucks" turnaround plan, aiming to rectify its mistakes.
This time, however, the company is making a surprising move by expanding into an unexpected category that has nothing to do with coffee.
Starbucks enters the fashion and beauty business Starbucks (SBUX) has hired Neiv Toledano as its new Head of Fashion and Beauty for the Brand Activation team.
While the company has collaborated with fashion and beauty partners in the past, this newly created role is the first of its kind, since it's dedicated solely to the development of strategy and execution in the space.
Toledano brings her experience working with major consumer brands across social media and marketing.

Sources

Starbucks makes a bold move beyond coffee

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