J. Cal

Do you think that's really true, J. Cal? Because like Nickel came on and he said, we're going back to the core, flat whites, espressos, nice espressos, delicious coffee. But the reality is, in order for them to have grown revenue over the last 20 years, Starbucks has expanded their menu, as Chamath has pointed out, to becoming a seller of sugar.

Do you think that's really true, J. Cal? Because like Nickel came on and he said, we're going back to the core, flat whites, espressos, nice espressos, delicious coffee. But the reality is, in order for them to have grown revenue over the last 20 years, Starbucks has expanded their menu, as Chamath has pointed out, to becoming a seller of sugar.

They've become a seller of milkshakes and flavored beverages and high sugar cocktails, mocktails, that people run into the store to buy two, three times a day. That's how they were able to get the pickup not selling what they started out doing, which was fine Italian roast and espresso, it's now become a very different product and a very different experience.

They've become a seller of milkshakes and flavored beverages and high sugar cocktails, mocktails, that people run into the store to buy two, three times a day. That's how they were able to get the pickup not selling what they started out doing, which was fine Italian roast and espresso, it's now become a very different product and a very different experience.

And so can you really go back to the core and not lose all the customers that I would say aren't looking for a flat white and an espresso, they're looking for a milkshake in the middle of the day.

And so can you really go back to the core and not lose all the customers that I would say aren't looking for a flat white and an espresso, they're looking for a milkshake in the middle of the day.

Let's watch Nickel's clip and then Chamath, you can give us your take on this. This is a 30-second clip from Nickel's six minutes that he put out on Twitter.

Let's watch Nickel's clip and then Chamath, you can give us your take on this. This is a 30-second clip from Nickel's six minutes that he put out on Twitter.

By the way, this is one of the things that Nichols did at Taco Bell when he was the CEO there. You guys remember the Taco Bell menu? There was always like really interesting hidden things on that menu. He simplified the menu, made it very small, did the same at Chipotle.

By the way, this is one of the things that Nichols did at Taco Bell when he was the CEO there. You guys remember the Taco Bell menu? There was always like really interesting hidden things on that menu. He simplified the menu, made it very small, did the same at Chipotle.

He takes this approach of finding the best product, simplifying the experience, simplifying the operations, and giving the customers fewer choices that ultimately leads to faster turnaround, better experience. But the trade-off is you have less variety that people have come to know and love.

He takes this approach of finding the best product, simplifying the experience, simplifying the operations, and giving the customers fewer choices that ultimately leads to faster turnaround, better experience. But the trade-off is you have less variety that people have come to know and love.

And at Starbucks in particular, where there is just so much variety to choose from now, if your favorite beverage got pulled off the menu, are you going to start to go there less frequently? Chamath, I don't know if you have a take on what's going on at Starbucks and whether it tells you something about the maturity about one of the most iconic consumer brands in America.

And at Starbucks in particular, where there is just so much variety to choose from now, if your favorite beverage got pulled off the menu, are you going to start to go there less frequently? Chamath, I don't know if you have a take on what's going on at Starbucks and whether it tells you something about the maturity about one of the most iconic consumer brands in America.

Five years.

Five years.

So it may be true, but I think that the core objective of any corporation is to maximize shareholder value driven by growing profits over time. So growing profits over time requires increasing your revenue. And there are three levers for doing this. Maximize brand, which is to get more customers. And I don't know if you can get the brand to be any more maximal than Starbucks.

So it may be true, but I think that the core objective of any corporation is to maximize shareholder value driven by growing profits over time. So growing profits over time requires increasing your revenue. And there are three levers for doing this. Maximize brand, which is to get more customers. And I don't know if you can get the brand to be any more maximal than Starbucks.

Maximize coverage, which is how many products can you get those customers to buy, whether it's on a daily basis, weekly basis, or monthly basis. How much of their meals and wallet share are you getting?

Maximize coverage, which is how many products can you get those customers to buy, whether it's on a daily basis, weekly basis, or monthly basis. How much of their meals and wallet share are you getting?