How Starbucks has picked up steam again
5 years, 5 months ago

How Starbucks has picked up steam again

LA Times  

A Starbucks coffee shop in Beijing last year. Same-store sales in China alone, where Starbucks has been aggressively opening thousands of outlets, fell slightly during last year’s spring quarter as competition grew. And Starbucks’ management — led by Chief Executive Kevin Johnson, who took over two years ago from longtime CEO Howard Schultz — had produced quarterly results that sometimes fell short of Wall Street forecasts. “In the last year, we’ve reduced from seven to three steps to place an order” on the app, Patrick Grismer, Starbucks’ chief financial officer, told analysts this year. “Customers are digitally savvy and expect higher levels of convenience,” Johnson told analysts Thursday, adding that an effective app produces “more frequent occasions, increased spend, improved customer retention and marketing efficiency.” The growth of Starbucks’ Rewards loyalty program shows a sharp rise in people formally making the chain a regular part of their lives.

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History of this topic

Starbucks China: Expanding into Lower-Tier Cities, Driving Growth in County-Level Stores
2 months, 1 week ago

Starbucks China: Expanding into Lower-Tier Cities, Driving Growth in County-Level Stores

China Daily  

Starbucks China's performance from its newly-opened county-level stores has shown improvement compared to those in higher-tier cities. The company's revenue in China reached $783.7 million in the fourth quarter, marking a 6 percent increase from the previous quarter despite a 7 percent decline year-on-year. However, comparable store sales in China faced a 14 percent decline due to intensified competition and …

Coffee Market Redefines Itself with Quality-Driven Approach
2 months, 1 week ago

Coffee Market Redefines Itself with Quality-Driven Approach

China Daily  

Major players in China's coffee market are shifting their strategies to stay competitive. Shifting away from price-focused tactics to a quality-driven approach, brands like Cotti Coffee, Luckin Coffee, Tims China and Starbucks are finding unique ways to capture market share in a rapidly expanding sector.

Starbucks Redefines Its Strategy for China Coffee Market: A Focus on Sustainability and Quality
Trending News
2 months, 1 week ago

Starbucks Redefines Its Strategy for China Coffee Market: A Focus on Sustainability and Quality

China Daily  

Tims China is shifting its focus away from the price-driven race to the bottom and towards sustainability and quality for long-term success. The company will prioritize sustainability and quality for long-term success, focusing on partnerships and local supply chain initiatives to strengthen its brand. Starbucks China is also focusing on leadership and innovation to drive growth, with Molly Liu recently …

Coffee Market Redefines Itself as Brands Focus on Quality and Value
Top News
2 months, 1 week ago

Coffee Market Redefines Itself as Brands Focus on Quality and Value

China Daily  

Major players in China's coffee market are shifting their strategies to stay competitive. Shifting away from price-focused tactics to a quality-driven approach, brands like Cotti Coffee, Luckin Coffee, Tims China and Starbucks are finding unique ways to capture market share in a rapidly expanding sector.

Coffee Market Redefines Itself: From Price to Quality, Brands Adapt to Stay Competitive
2 months, 1 week ago

Coffee Market Redefines Itself: From Price to Quality, Brands Adapt to Stay Competitive

China Daily  

Major players in China's coffee market are shifting their strategies to stay competitive. Shifting away from price-focused tactics to a quality-driven approach, brands like Cotti Coffee, Luckin Coffee, Tims China and Starbucks are finding unique ways to capture market share in a rapidly expanding sector.

Starbucks ousts CEO as market growth slumps
4 months, 3 weeks ago

Starbucks ousts CEO as market growth slumps

China Daily  

Starbucks, which has struggled this year in its two largest coffee markets — the US and China — on Tuesday ousted its CEO, responding to pressure from an activist investor and its longtime former boss. The Seattle-based company, the world's largest coffee chain, named Brian Niccol, the CEO at Chipotle Mexican Grill since 2018, as its new chairman and CEO, …

Starbucks quarterly revenue falls on weak traffic in US and China
5 months, 1 week ago

Starbucks quarterly revenue falls on weak traffic in US and China

Associated Press  

Starbucks’ revenue fell 1% in the April-June period as customer traffic weakened in the U.S. and China. “We are focused on what we can control in a consumer environment that can best be described as ‘complex,’” Starbucks CEO Laxman Narasimhan said during a conference call with investors. Starbucks’ comments mirrored those at McDonald’s, which said earlier this week that its …

Starbucks lowers guidance, promises new drinks and deals after customer traffic fell in weak Q2
8 months, 1 week ago

Starbucks lowers guidance, promises new drinks and deals after customer traffic fell in weak Q2

Associated Press  

Starbucks lowered expectations for its full-year sales and profit Tuesday after a disastrous quarter that saw a slowdown in store visits across the world. In China, Starbucks said the post-COVID recovery has been choppy, and it’s Starbucks is also facing ongoing boycott of its stores for its perceived support of Israel in the war in Gaza. Narasimhan said Starbucks will …

Starbucks reports record Q1 revenue but lowers outlook as consumer spending falls in some markets
11 months, 1 week ago

Starbucks reports record Q1 revenue but lowers outlook as consumer spending falls in some markets

Associated Press  

Starbucks reported record revenue in its fiscal first quarter but lowered its sales outlook for the rest of the year as spending weakens in China and other markets. Starbucks also saw record U.S. spending per order as visitors bought more food and spent more to customize their drinks. Narasimhan on Tuesday reiterated that Starbucks wants to restart negotiations with Workers …

How Starbucks Lost the Top Spot in China’s Coffee Race
1 year, 1 month ago

How Starbucks Lost the Top Spot in China’s Coffee Race

Live Mint  

Starbucks is losing its prime spot among chains racing to meet China’s growing thirst for coffee. Luckin Coffee has surpassed Starbucks as China’s biggest coffee chain by sales and units, company reports show, a comeback for the Chinese company after an accounting scandal that stalled its growth. Executives said China would one day become Starbucks’s largest market. Luckin, founded in …

Pumpkin spice helps Starbucks posts record sales, but growth may moderate in coming year
1 year, 2 months ago

Pumpkin spice helps Starbucks posts record sales, but growth may moderate in coming year

Associated Press  

Customers fell for Starbucks’ fall menu in the fiscal fourth quarter, with Pumpkin Spice Lattes and apple croissants helping the company achieve record revenue. Starbucks said its global same-store sales — or sales at stores open at least a year — rose 8%, surpassing analyst forecasts for a 6.8% increase. In the upcoming fiscal year, Starbucks said it expects same-store …

Starbucks earns big in the Chinese market
1 year, 5 months ago

Starbucks earns big in the Chinese market

China Daily  

Starbucks is rolling out a range of new sustainable packaging at its stores in China. In the Chinese market, the company's comparable store sales increased 46 percent and the transactions grew 48 percent in Q3 which ended on July 2 this year. China business continued to recover in line with expectations and it is clear the company has abundant opportunity …

Starbucks reports record revenue as China booms, but sales still fall short of expectations
1 year, 5 months ago

Starbucks reports record revenue as China booms, but sales still fall short of expectations

Associated Press  

Starbucks reported record revenue in its fiscal third quarter as its China business roared back to life. While its earnings surpassed Wall Street’s forecast, its revenue and same-store sales were lower than expected as North American store traffic slowed. Same-store sales — or sales at stores open at least a year — jumped 46% in China, reversing last year’s declines …

Starbucks misses sales, revenue estimates as China falters
1 year, 11 months ago

Starbucks misses sales, revenue estimates as China falters

Associated Press  

Starbucks reported lower-than-expected sales in its fiscal first quarter, with COVID store shutdowns in China overshadowing stronger results elsewhere. During a conference call with investors, Starbucks’ interim CEO Howard Schultz said China’s decision to end its zero-COVID policy in December caused a spike in infections that closed nearly 30% of Starbucks’ 6,000 stores at its peak. But Schultz said Starbucks …

Starbucks reports record Q4 revenue despite China declines
2 years, 2 months ago

Starbucks reports record Q4 revenue despite China declines

Associated Press  

Pumpkin spice pumped up Starbucks’ sales in its fiscal fourth quarter, and the company said it’s confident that momentum will carry on into next year. “There is an affordable luxury to Starbucks that our customer base has been willing to support,” Starbucks’ interim CEO Howard Schultz said Thursday in a conference call with investors. Starbucks said it expects global same-store …

Starbucks charts expansion plan in China for more market share
2 years, 3 months ago

Starbucks charts expansion plan in China for more market share

China Daily  

A Starbucks store in Hangzhou, Zhejiang province. Starbucks plans to increase its store numbers by 50 percent to 9,000 stores by 2025 in China－its second-largest market－as well as double its sales and quadruple its operating income through efforts including store expansion, growth in omnichannel engagement and at-home and on-the-go coffee services. By 2025, the company is expected to open a …

Stars Coffee, anyone? Starbucks successor opening in Russia
2 years, 4 months ago

Stars Coffee, anyone? Starbucks successor opening in Russia

Associated Press  

MOSCOW — People in Moscow who were disappointed when Starbucks closed its coffee shops after Russia sent troops into Ukraine may now feel a caffeine jolt of hope: A nearly identical operation is opening in the capital. The menu, judging by the company app introduced a day before the store’s formal opening Friday, would look familiar to any Starbucks customer. …

Starbucks reports record revenue on frothy US demand
2 years, 5 months ago

Starbucks reports record revenue on frothy US demand

Associated Press  

Starbucks on Tuesday reported record revenue in the April-June period, as strong U.S. demand made up for COVID shutdowns in China. Interim Starbucks CEO Howard Schultz said the company isn’t yet seeing any impact from inflation, despite increasing prices about 5% over the same period last year. U.S. workers currently make an average of $17 per hour, Starbucks North America …

Starbucks reports record Q2 sales, enhances worker benefits
2 years, 8 months ago

Starbucks reports record Q2 sales, enhances worker benefits

Associated Press  

Starbucks’ sales climbed to record levels in its fiscal second quarter, but its profits took a hit from climbing labor costs. Instead, Schultz said U.S. labor law requires stores to negotiate their own contracts with Starbucks. “But compare any union contract in our sector to the constantly expanding list of wages and benefits we have provided our people for decades, …

Starbucks’ strong US holiday offset by costs, China slump
2 years, 11 months ago

Starbucks’ strong US holiday offset by costs, China slump

Associated Press  

Starbucks had a strong holiday season in the U.S., but those results were offset by higher labor and commodity costs and weaker sales in China. It expects adjusted earnings growth of 8% to 10%, down from its previous forecast of at least 10% Starbucks said it is cutting back on marketing and promotions to help offset its rising costs. Starbucks …

On-premise outlets banking on social networking to expand presence, sales
3 years, 8 months ago

On-premise outlets banking on social networking to expand presence, sales

China Daily  

A customer orders a cup of coffee at a Starbucks outlet in Qingdao, Shandong province. Online social networking has become the new trend for on-premise coffee chains to get connected with digital-savvy Chinese consumers, even as the companies intensify their brick-and-mortar store expansion in the country. Starbucks China, a unit of United States-based coffee giant Starbucks, has introduced Starbucks Now …

On-premise outlets banking on social networking to expand presence, sales
3 years, 8 months ago

On-premise outlets banking on social networking to expand presence, sales

China Daily  

A customer orders a cup of coffee at a Starbucks outlet in Qingdao, Shandong province. Online social networking has become the new trend for on-premise coffee chains to get connected with digital-savvy Chinese consumers, even as the companies intensify their brick-and-mortar store expansion in the country. Starbucks China, a unit of United States-based coffee giant Starbucks, has introduced Starbucks Now …

Store expansions, online orders help in keeping momentum on even keel
3 years, 10 months ago

Store expansions, online orders help in keeping momentum on even keel

China Daily  

A Starbucks Now Store in Beijing's financial area. CHINA DAILY Leading coffee chains are banking on the strong growth seen in the recent quarters to chart store expansions and penetration into more lower-tier cities, despite the huge surge in online orders due to the COVID-19 restrictions. Leading coffeehouse chain Starbucks Corp said its comparable store sales rose by 5 percent …

Starbucks continues to nurture its latte influence in China
3 years, 11 months ago

Starbucks continues to nurture its latte influence in China

China Daily  

The entrance of the Starbucks coffeehouse in Hefei, capital of Anhui province. ZHOU DAOXIAN/FOR CHINA DAILY HEFEI－In a country with time-honored tea culture, Su Yang, has developed the habit of drinking coffee, largely due to the influence of Starbucks. "It's difficult to start a day without a cup of coffee," says Su, a 29-year-old white-collar worker in Hefei, capital of …

Starbucks continues to nurture its latte influence in China
3 years, 11 months ago

Starbucks continues to nurture its latte influence in China

China Daily  

The entrance of the Starbucks coffeehouse in Hefei, capital of Anhui province. ZHOU DAOXIAN/FOR CHINA DAILY HEFEI－In a country with time-honored tea culture, Su Yang, has developed the habit of drinking coffee, largely due to the influence of Starbucks. "It's difficult to start a day without a cup of coffee," says Su, a 29-year-old white-collar worker in Hefei, capital of …

China's coffee consumption upgrading speeds up industrial layout
4 years, 8 months ago

China's coffee consumption upgrading speeds up industrial layout

China Daily  

The world's biggest Starbucks store, Coffee Wonderland, is located in Shanghai. Coffee lover Zhao Xiaotong rushed to a Starbucks store when the coffee brand resumed business in Nanjing, capital of East China's Jiangsu province. Nowadays, coffee consumption is also growing rapidly in China, turning the traditionally tea-drinking country into one of the world's most promising markets for the coffee industry. …

China's coffee consumption upgrading speeds up industrial layout
4 years, 8 months ago

China's coffee consumption upgrading speeds up industrial layout

China Daily  

The world's biggest Starbucks store, Coffee Wonderland, is located in Shanghai. Coffee lover Zhao Xiaotong rushed to a Starbucks store when the coffee brand resumed business in Nanjing, capital of East China's Jiangsu province. Nowadays, coffee consumption is also growing rapidly in China, turning the traditionally tea-drinking country into one of the world's most promising markets for the coffee industry. …

Starbucks shutters half its China stores, warns of hit from virus
4 years, 11 months ago

Starbucks shutters half its China stores, warns of hit from virus

Al Jazeera  

The US-based coffee chain closed more than half of its stores in China in response to the coronavirus outbreak. Starbucks Corp has become the first large United States company to warn of a financial hit from the new coronavirus outbreak in China, as it closed thousands of restaurants and adjusted operating hours in its biggest growth market. The company, which …

Starbucks has closed more than half of its Chinese stores because of coronavirus
4 years, 11 months ago

Starbucks has closed more than half of its Chinese stores because of coronavirus

CNN  

New York CNN Business — Starbucks has closed more than half of its roughly 4,300 Chinese stores, as the deadly coronavirus continues to spread in the country. The company said Tuesday it is continuing to “monitor and modify the operating hours of all of our stores in the market,” in light of the outbreak.”This is expected to be temporary,” Starbucks …

Starbucks doesn’t want you to order at its newest store
5 years, 2 months ago

Starbucks doesn’t want you to order at its newest store

CNN  

New York CNN Business — Starbucks aims to get bigger by going smaller, with a new store format that’s a fraction the size of its normal cafe. The new location is one answer to what Starbucks envisions as the third place between work and home, according to Kathryn Young, the company’s vice president of urban markets. CEO Kevin Johnson said …

Starbucks’ big rival in China plans to list in New York
5 years, 8 months ago

Starbucks’ big rival in China plans to list in New York

CNN  

Hong Kong CNN Business — Starbucks’ big rival in China just announced plans to go public in the United States. The rapid of ascent of Luckin to challenge Starbucks shows how Chinese upstarts are increasingly rivaling Western brands in one of the world’s top consumer markets. Luckin said Monday it had been boosted by huge growth in coffee consumption in …

Starbucks CEO: We are playing the long game in
5 years, 11 months ago

Starbucks CEO: We are playing the long game in

CNN  

New York CNN Business — New competition and a slowing economy aren’t scaring Starbucks away from China. “We remain bullish on our path in China and the growth that lies ahead.” China is Starbucks’ fastest-growing major market, and the company has expanded aggressively in the country. New Starbucks stores stealing sales from one another, plus competition from Luckin, “will inevitably …

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