Brian Niccol

We can focus on when you walk into our stores, you feel warm, you feel welcomed, you feel like this is your place.

We can control our ability to get you that exact drink at the speed of what you need it, the speed of what you want it.

And then we also, you know, can open up a great seat where if you want to stay and dwell with us, we got that for you, too.

Well, I think we're just playing in a different way, which is the way we're going to play the value game is you're going to feel like it was worth it.

And it's not going to be a game of discounting or one-off promotions.

I think people actually really do appreciate knowing, hey, if this is a $3 cup of coffee or a $5 latte –

I know I'm going to get a great experience for that $5 experience, I'm in.

And I think if you have to try and compensate for not delivering on the experience, then that's where I think you may have to lean into other promotions or discounting opportunities.

But that's really not what is in the DNA of Starbucks.

What's in the DNA of Starbucks is this idea of humanity happening in a third place and getting you the customized experience that you want.

And if you can count on that,

then I think you feel good about handing over your hard-earned dollar.

Don't get me wrong, we're going to be leveraging technology behind the scenes, but I want AI and technology to enable our barista to provide better moments of connection or free them up to spend more time on their craft and the ability to present that human-to-human experience.

And I'll give you a great example.

Even in our drive-through, we've experimented with, hey, do you use an AI tool to take the order?

And what we found is you're still better off

having a person interact with our customer through the order experience.

And then behind the scenes, we're using AI to listen to what that order is so that it gets inputted into the point of sale machine correctly, accurately, and then also can track where the order is so that by the time you get to the window, the drink is made and ready to go.

But we've protected that human-to-human experience even through the order board.

Yeah, it was a great quarter for us.