Starbucks’ European stores have struggled with sales declines for three straight quarters, even as other regions like Mexico and South America thrive. Consumer trends and market dynamics have played key roles in this divergence. Alsea, which runs 1,858 licensed Starbucks stores across Europe and Latin America, saw weaker demand in Western Europe due to boycotts linked to Starbucks’ perceived political stances. These boycotts hit France, Spain, Portugal, and the Benelux countries hardest.
Meanwhile, Latin America surged, driven by stronger spending in Mexico and South America. Alsea expanded aggressively in Mexico, opening 16 net new Starbucks stores in the third quarter alone to capitalize on strong demand. Europe’s economic pressures, like rising costs, added to the slump, while Alsea closed three Dutch stores in Q3 2024—Starbucks’ only net decline in that market.
Latin American sales surged behind Mexico and South America, while Europe’s economic pressures and three Dutch store closures marked Starbucks’ only regional net decline in Q3 2024.
Starbucks’ European performance lagged behind its other global markets. Alsea reported 2.6% like-for-like sales growth for Starbucks in Q3 2024, far below its European fast-food (16%) and full-service restaurant (6.3%) segments.
Internationally, Starbucks’ comparable store sales dropped 4%, dragged down by Europe even as global revenues inched up 1% year-over-year. The decline was driven by a 6% drop in transactions, partially offset by a 3% rise in average ticket sizes. North America also faltered, with revenue declining 1% to $7.1 billion. Yet Starbucks’ European operations avoided collapse, signaling resilience despite boycotts stretching into late 2023. Customers in some markets kept visiting stores, though sales growth remained muted.
Company strategies aim to elevate recovery. A “Back to Starbucks” initiative focuses on streamlined menus and faster service to recapture casual visitors. Reusable ceramic cups were reintroduced to improve store experiences. These efforts haven’t yet reversed declines, but executives noted early signs of stabilization.
Europe’s challenges contrast sharply with Latin America, where Starbucks continues expanding its footprint. Alsea’s partnership keeps Starbucks competitive in Europe despite pressures. Store closures in the Netherlands reflect tactical adjustments rather than retreat.
While geopolitical tensions and economic strains linger, Starbucks’ brand power and local adaptations offer a path to rebound. For now, Europe’s mixed results mirror global shifts in dining habits and spending, but the chain’s long-term foothold suggests it’s betting on gradual recovery.
