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Brexit and Terrorism fears hurting Starbucks

Unfortunately for the coffee giant ‘Starbucks’ it has saw a profit drop of 74% in year to start of October in it’s efforts to gain customers.

Starbucks say the company is cautious on the outlook going into 2017 due to the economic & geopolitical headwinds including slowing the economic growth, the Brexit impact and ongoing security concerns in the UK are affecting the consumers confidence.

Loyalty programme

The world’s Largest coffee company has been trying to improve sales with new technology and a loyalty programme that will lock in their customers. UK sales have been hindered by the Brexit vote to leave the European Union, and by recent terror attacks across Europe. Last year, Starbucks blamed attacks in Paris for hurting European results. In the US, the company is facing pressure as its mobile-order-ahead application causes back-ups at the pick-up counter.

Starbucks said its UK business was “investing significantly” in lighter healthier food options including  fresh fruit, salads and wraps. It was also remodelling stores to “reflect changing customer demands”