![]() exited Q1 over 30 million members, up four million (15 percent) over last year and 6 percent sequentially. Revenue rose 14 percent to a quarterly high of $6.6 billion.Īctive Starbucks Rewards membership in the U.S. Eight of the 10 highest sales days in Starbucks’ history came this past three-month period. ![]() corporate units reached a record high in Q1, beating a mark set in Q4 of the previous year. “And that was true throughout the pandemic, and it's true right now.”Īverage weekly sales in U.S. “We see continued strength in our future innovation roadmap and our existing strategy around cold, customized, and plant-based beverages, and it comes down to beverages that customers love that they truly can only find at Starbucks,” Brewer added. “If we look at the last quarter, we have more customers in total population than ever in the U.S.,” he said. If a recession does indeed take hold, CMO Brady Brewer said, the brand will lean on “momentum and innovation.” Starbucks now is using its mobile app and ability to curate products as a way to justify the circular cost.Īdditionally, it’s an angle keeping Starbucks bullish despite whatever economic turmoil awaits. It’s a far-removed approach from the buzz-generating Unicorn Frappuccino days of old. “Showing that customers are visiting Starbucks for beverages customized to their preferences that they cannot find anywhere else,” Schultz said. Modifier sales rose 28 percent in Q1, year-over-year, in U.S. This modifier conversation has pulsed all year. In other terms, the Starbucks guest doesn’t appear to be judging the cost of their visit by price as they might in other retail concepts they’re paying up for a product whose value owes to exclusivity. The number of unique customers grew 10 percent in Q1, setting another banner. Customization and how guests can create proprietary beverages are central to the brand’s value perception today, Schultz explained. In a cost-inflated climate where many consumers are trading down, and, in turn, there’s been widespread discounting, Starbucks’ loyalists aren’t pinching. Starbucks’ ticket in December was the highest it’s ever been, Schultz said. same-store sales increased 10 percent in Q1, driven by a 9 percent hike in average ticket and a 1 percent lift in comparable transactions, year-over-year. ![]() ![]() What is concrete near-term, however, is Starbucks’ business heads into a leadership change (Laxman Narasimhan is taking over as CEO in April) as a rapidly evolving organization, and one that’s generating record figures despite the fact transactions remain below pre-COVID levels. “We won't unveil details today, but it will be a game-changer, so standby,” Schultz said. Schultz wouldn’t divulge further, only to say he’d describe it is as, “alchemy.” What a “a seemingly magical process of transformation, creation, or combination,” or a “medieval forerunner of chemistry,” has anything to do with Starbucks likely isn’t on anybody’s bingo card. Later this month, Schultz teased, he’s going to return to Milan and introduce “something much bigger than any new promotion or beverage.” On a trip to Italy last summer, Schultz discovered “an enduring, transformative new category and platform for the company, unlike anything I had ever experienced,” he said. Four decades after inspiration struck, the nearly 36,000-unit coffee shop serves 100 million customers per week. It was 40 years ago Schultz walked the streets of Milan in one of the most well-worn origin stories in foodservice. On Howard Schultz’s 108th-and what he claims final-earnings call, he hinted at taking Starbucks full circle. ![]()
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