Starbucks card reloads fall for first time in years as new CEO starts

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Starbucks’ Card reloads in the US fell YoY in the four weeks ended July 6 for the first time since 2022 according to Earnest ACH (bank card) data.

The 1% decline represents a steep deceleration from summer 2023 when Starbucks patrons grew their card reloads (shown as Store Card above) at mid-double digits. Starbucks Card loads and reloads, encouraged through app-based incentives, represented a significant portion of spending at Starbucks in July 2024. These card reloads occur regularly as customers run low on their balances and can serve as a valuable forward indicator of sales growth.

Reversing the slide in card reloads on the app is just one of the challenges that new Starbucks CEO Brian Niccol faces. There are also signs of “deterioration” in the brand as growth slows. Earnest data shows that newcomers like 7 Brew and Dutch Bros. are taking wallet share from Starbucks, even among the popular drive-thru format where Starbucks has invested in recent years.