Starbucks reported its first-ever decline in US customer visits today, reports Bloomberg. The coffee juggernaut lowered its profit and sales forecast, and shares of its stock fell 8.3%. The profit revision suggests that Starbucks is losing customers to McDonald's and Dunkin' Donuts, where a cup of coffee may cost $1 or less.
"The consumer is being faced with rising costs in every sector of their lives, and so part of that is reflecting on us," said CEO Jim Donald. Starbucks will begin running TV ads for the first time tomorrow to woo new customers to its stores. It also has added breakfast sandwiches, salads, and more pastry items to keep consumers from going to other chains.