J. Cal

And I don't know how many more times you can get people to go back into a Starbucks each week than they've done with their rewards program, with their digital, with their high throughput tools that they've built over the last decade, and so on. And then finally, maximize price. There's a limit to how much you can charge people

And I don't know how many more times you can get people to go back into a Starbucks each week than they've done with their rewards program, with their digital, with their high throughput tools that they've built over the last decade, and so on. And then finally, maximize price. There's a limit to how much you can charge people

When you put those three together, you got more customers, you're selling them more stuff at the highest price possible. At some point, you reach a revenue maximum. That has happened also at Apple. I think that Apple has faced a similar dilemma in the last couple of years, which is how do we get more customers? It's the most recognized brand on earth. You can only buy so many Apple products now.

When you put those three together, you got more customers, you're selling them more stuff at the highest price possible. At some point, you reach a revenue maximum. That has happened also at Apple. I think that Apple has faced a similar dilemma in the last couple of years, which is how do we get more customers? It's the most recognized brand on earth. You can only buy so many Apple products now.

You know, they tried to launch the Vision Pro. It didn't go well. Today they announced that they're, this week they announced they're discontinuing production or reducing production on the Vision Pro. and you can only charge so much for these products.

You know, they tried to launch the Vision Pro. It didn't go well. Today they announced that they're, this week they announced they're discontinuing production or reducing production on the Vision Pro. and you can only charge so much for these products.

And I would argue that Starbucks is a victim of the same maximization effect, that at some point you get all the customers, you get them to come in and buy as many products from you as they can, and you charge them the highest price possible, and then you reach this kind of maximum point on the business. And I think Starbucks has just reached that point of maturity.

And I would argue that Starbucks is a victim of the same maximization effect, that at some point you get all the customers, you get them to come in and buy as many products from you as they can, and you charge them the highest price possible, and then you reach this kind of maximum point on the business. And I think Starbucks has just reached that point of maturity.

So to your point, it doesn't mean that it's a bad business at all. It could be a great business, a nicely profitable business, But the growth ahead of it is limited. It cannot keep growing same-store sales as it has historically because they've maximized all three of those levers. So fewer costs might be a way to drive more profits, more efficient operations.

So to your point, it doesn't mean that it's a bad business at all. It could be a great business, a nicely profitable business, But the growth ahead of it is limited. It cannot keep growing same-store sales as it has historically because they've maximized all three of those levers. So fewer costs might be a way to drive more profits, more efficient operations.

I think that's the natural next state for nickel to tackle at this company.

I think that's the natural next state for nickel to tackle at this company.

And then you grow profit by reducing costs and getting more efficient versus trying to add more product to get more customers. Which degrades the experience.

And then you grow profit by reducing costs and getting more efficient versus trying to add more product to get more customers. Which degrades the experience.

Yeah, and so what happens when a company gets to this level of maturity, much like has happened with Apple, is the multiples compress.

Yeah, and so what happens when a company gets to this level of maturity, much like has happened with Apple, is the multiples compress.

All right, troubleshooting part of the All In podcast is over. I really want to say thanks to Saks for participating headily in our Starbucks discussion. Saks, anything you want to say on the maturity of Starbucks or other mature tech businesses or value luxury businesses as they get big? Too big to keep growing. Anything else?

All right, troubleshooting part of the All In podcast is over. I really want to say thanks to Saks for participating headily in our Starbucks discussion. Saks, anything you want to say on the maturity of Starbucks or other mature tech businesses or value luxury businesses as they get big? Too big to keep growing. Anything else?

What do you get? What's your order? Tell us your order. Yeah, what's your order?

What do you get? What's your order? Tell us your order. Yeah, what's your order?