Howard Schultz

I think we should talk about that.

I think we should talk about that.

Yeah.

Yeah.

The joint venture relationships that we've established, some goes back almost 30 years, in the Middle East, in Latin and Central America, now in Italy, in the EU, in India. And what does it mean to be your partner? Every country is different depending on the economics of that country, the political issues.

The joint venture relationships that we've established, some goes back almost 30 years, in the Middle East, in Latin and Central America, now in Italy, in the EU, in India. And what does it mean to be your partner? Every country is different depending on the economics of that country, the political issues.

Some countries have been an 80-20, Starbucks owns 80, they own 20, some are 50-50, some of the 80-20 started out as 80 for us and they bought it in over the way. It depends. But the key thing is, whether it's Alberto Tirado in Latin and Central America, Mohammed Alshai in the Middle East, The Tata Group in India, the Percossi family in Italy, they understand the culture and values of Starbucks.

Some countries have been an 80-20, Starbucks owns 80, they own 20, some are 50-50, some of the 80-20 started out as 80 for us and they bought it in over the way. It depends. But the key thing is, whether it's Alberto Tirado in Latin and Central America, Mohammed Alshai in the Middle East, The Tata Group in India, the Percossi family in Italy, they understand the culture and values of Starbucks.

And so tactically, you said it's not a franchise in the traditional way. What are Starbucks responsible for and what is the partner responsible for?

And so tactically, you said it's not a franchise in the traditional way. What are Starbucks responsible for and what is the partner responsible for?

Starbucks is responsible for roasting the coffee, for all the recipes which are consistent with Starbucks worldwide. a co-design to the store where we're designing the store with the JV or the licensed partner, and they control all the operations.

Starbucks is responsible for roasting the coffee, for all the recipes which are consistent with Starbucks worldwide. a co-design to the store where we're designing the store with the JV or the licensed partner, and they control all the operations.

And so all of Starbucks' franchise or licensed stores are done in this way where there's a partner in a country. Yes.

And so all of Starbucks' franchise or licensed stores are done in this way where there's a partner in a country. Yes.

There are no individual licensed franchises of any kind unless it's certain real estate that we can't get that we want access to, like a roadway on a highway in Switzerland. It's something odd. I see.

There are no individual licensed franchises of any kind unless it's certain real estate that we can't get that we want access to, like a roadway on a highway in Switzerland. It's something odd. I see.

And airports are this way, right?

And airports are this way, right?

Airports are master licensed with the master licensee, like whoever has it in Marriott or whoever has it. I gotcha. Or Target that has 2,000 Starbucks stores. And those are Target operated? Yes. I see.

Airports are master licensed with the master licensee, like whoever has it in Marriott or whoever has it. I gotcha. Or Target that has 2,000 Starbucks stores. And those are Target operated? Yes. I see.