Howard Schultz
speaker
633 appearances
1 recordings
1 series
first heard Jun 2024
last heard Jun 2024
Howard Schultz’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsNo recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.
Appearances
And everyone shows up and all of a sudden we got a mosh pit and that's not Starbucks. And so the company did not do a good job of anticipating the technological refinements that needed to be put in place to avoid what was happening. And I want to be fair to everyone who's managed the company. For about a five-year period, remember, I wasn't involved in the company from basically 2018 to 2022.
I was not involved. You stayed CEO from 2008 until 2017. Then I left. And... There were no bad people and no one had bad intentions. But the heritage and tradition of what I've described, which is so vital to the nurturance, was lost.
Yeah, the stock was at record high. And the company was not investing ahead of the curve and not paying attention to the velocity of the mobile app and what it was becoming until it was too late. And the company has that problem today, which they will solve. But it's late. And also, everyone has caught up to, we were the only game in town.
And the novelty of that and the uniqueness of it, especially for our product. And everyone pretty much copied it.
It is interesting to, David keeps saying it's so seductive, to put some numbers for listeners wondering, why is the mobile app such an interesting thing? David pointed out the float.
So, of course, if you look at Starbucks' financial statements, right now, at any given time, there's about $1.8 billion of cash that Starbucks has gotten in the form, effectively, as an advance from customers that Starbucks can use to operate. It's like this amazing...
We're not the only one.
Amazon has this. Apple has this. Berkshire has this, the insurance business. But it's effectively interest-free loan from customers and a loan that's not all going to get called at once. Some of it will never get called. Right, the breakage. And so there's this benefit of it's a reasonably predictable amount of cash that comes in that you get to use for your advantage.
In terms of velocity, about $14 billion a year gets loaded onto gift cards. That's unbelievable. I mean, if you actually look at all of the banks in America, if Starbucks were a bank and you treated the gift cards as deposits, it would be in the top 10% by deposits of banks in the United States.
It's this unbelievable business model that happens to exist inside of this experiential business that powers this experiential business. But to your point, you have to keep it from eating the core.
Yeah. So let's just go back, not to the economics, but the idea itself. And I think whether we talked about bottle frappuccino, the cup, you just thread all these things. There is a common...
through line and that is we took a commodity business and we transformed it into a premium product brand and experience but when you are disrupting the market there has to be some governor on the on the disruptive innovation to monitor how is it being used how is it being abused and the era of judgment
In the period where this was really kind of, where we really took hold, this five-year period between 2018 and 2022, it's a government that didn't exist. Oh, you feel like it wasn't really taking hold in that whole run before.
It was taking hold.
you know and i'm not criticizing anyone because you know we're all everyone's trying to do a good job but the the the result is the the the runner the the unbelievable success it disrupted the experience yeah and now you have stores that are entirely built to just pick up mobile orders and so and and my view is we should not succumb to the mobile app
I don't think I would have allowed the mobile app to be on demand 24 hours a day.
Hmm.
I would have slow rolled the availability of it and then understood how it was being used and whether or not it was going to disrupt the experience. But now it's on demand, whatever you want it. And now you can't. You can't shut it off from 8 to 9.
The expectation's been set. Whenever I get that message, mobile order ahead is not available at this time, I'm like, oh, but it's available 99% of the time. It's not available now? No. Yeah, I won't even go to a store if it doesn't have it.
The store's over on, you wouldn't go. Yeah. That breaks my heart. I hate to hear that.
Showing 401–420 of 633 · page 21 of 32
← Previous
Next →