I'm not usually one to call for a CEO to resign, but this was an awful performance by Laxman. He seems at a loss for words, just parroting back the same lines over and over again. I think the board needs to look for a new CEO, as SBUX strategy is clearly failing. His insistence that Starbucks coffee is a "good value" is silly. It's a premium product that became too expensive, with costs above their peers. They raised prices too much and consumers are going elsewhere. A basic small coffee should not be over $5.
classic case of losing touch with your customer. Elon recognized this problem in EVs and cut prices immediately and that helped Tesla a ton. If Starbucks announced they will cut prices 25% the stores would be mobbed again. Idk what the right number is to cut but coffee demand is definitely not dropping.
not exactly -- the problem is that its not a premium product anymore, but is still priced like one. you have to pick: value or premium. You cant charge like its premium and not deliver -- people will go elsewhere.
I agree. He needs to go. And the problem isn’t his performance here. It’s the fact that he’s putting on a performance in the first place. State the facts and move on to the business of fixing the business.
corporate mumbo jumbo, they all talk like that. He could have said something as simple as "we will be offering more deals and discounts in the app than before" and that would have sufficed instead of rambling for 2 minutes about vague nonsense.
@@hh0686 just buy from a local cafe/coffee shop, everything is overpriced because these giant chains stiff arm every small business so they have little competition. Another one coming in from China and doing the same thing doesn't change the problem.
@@retrodripsupport7510 most of the time even Chinese chain giants still keep prices below the American counterparts just to stay competitive. Say BYD vs Tesla, Huawei vs Apple
Laxman did not explain why he did not prepare the market for this bad news. He kept saying they are working on a plan to translate value to the occasional Starbucks client. It sounds to me like a non answer. Count on more stock price depreciation.
In defense, there wasn't anything he could say. What is there to say when the company didn't perform? Especially given something like a coffee business. At least with tech you can trick shareholders (a la Elon Musk) and just say big words, repeat "artificial intelligence" and then the stock price shoots up. With selling coffee what do you say? That we will sell more next quarter? That's about it. hahaha. Not trying to defend him. It was a bad interview. I just don't know what you could say.
@@Swagtildawn Maybe the CEO could choose not to appear on TV to avoid embarrassing himself? There is no law that says CEOs must do TV interviews after earnings calls. In fact, many executives of public traded companies rarely do any interviews.
New CEO needed, this guy was blowing smoke out of the rear end. High prices, the result of corporate greed, is the cause of this value miscommunication. Plain and simple!
I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts with experience since the 08' crash
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
Svetlana Sarkisian Chowdhury a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
let me help you out mr CEO, your customers ordering on mobile bogging down your store every weekday makes it so you can’t walk in and get a coffee anymore. so we now go to smaller coffee shops where we can walk in and actually get a coffee and not be late during the week. then when the weekend comes around we got used to better cheaper coffee and bathrooms that don’t smell like urine so we decide to go there again. I hope this helps you stop your declines over the next couple quarters
this feels relevant to me. I don't go to Starbucks at all any more. Too expensive. Better service and value from supporting smaller more local businesses. I don't just go to Starbucks less frequently, I actively avoid it now, and didn't really think about it much until watching this rambling interview
Aside from the extremely high prices and terrible food menu they have also created a toxic working environment for their staff by reducing headcount in stores to the point where everyone feels intense pressure. This company needs a new CEO to clean house and change the culture. You can charge premium prices for premium products and service but they're trying to charge premium prices for mediocre products and declining service all in the middle of an inflation/cost of living crisis. I wouldn't touch this stock with a 10 foot pole until this CEO is gone.
The food menu is sad and needs an upgrade. Also, they need decaffeinated options. If they made these two changes, I would go there pretty often, but as is, I go a few times a year. The CEO has the power to make these upgrades but I have not seen any meaningful change in the last year. It’s just been addling locations while those they have are loosing market share as it is.
He doesn’t care. He knows he can’t control the biz nor the share price. He just have to be able to talk and convince the Anglo Saxons to continue to not remove him as the CEO.
lol ppl are clueless that ppl under 30 years old are boycotting Starbucks over the Israel/ Palestine war. 🤦♂️. My daughter hasn’t bought Starbucks all year. She’s still spending on Dunkin and Dutch Bros.
This clearly played a major part in the bad results. But what i don't get, is: what exactly did Starbucks do to deserve a boycott? They sued the union which took a pro-Palestine stance while illicitly using the Starbucks logo. So what? It simply shows that Starbucks wants to remain apolitical and doesn't tolerate anyone taking a stance in their name. It doesn't mean they're actively supporting Israel. This boycott makes no sense to me.
@@stephenkatz1032 it’s a standard pressure campaign. Adjacent companies that support a cause start to hurt when being boycotted. Their overt support for said cause is theorized to decline. It’s pretty textbook.
It's strange that his main strategies seem to be communicating value to the consumer and promotions. Neither of those is as effective of a business model as ensuring the core offering is something consumers want (and this includes price).
absolutely agree. consistency and service have been bad for a while. price is just the last straw for people. every time they bring schultz back he focuses on consistency and service. every time some other bozo takes over, they focus on promotions.
I can sense how under pressure this guy is, his job is in jeopardy, calm down and bring lower prices with same quality and next quarter will be better!!!
They need to lengthen their hours and reduce their prices...And apparently they don't want you coming into a store anymore...Just go to the drive thru and throw your money out the window. Their cup sizes are ridiculously small for what they are charging.
I was going 6 times a week but throwing away the horrible coffee 50% of the time. I also was tired of the tipping and then having to throw away bad coffee after.
They are learning that there is in fact a ceiling to what people will pay for…coffee. Stop using the word “value”, for the prices they charge it simply does not compute.
Does Starbucks serve more milk than coffee? I rarely see a customer ordering only coffee. Mostly, I observe customers ordering milk-based concoctions full of syrup with a splash of espresso. Usually 16oz or larger with at least 250 calories. None of which I consider coffee.
He is not kidding in Japan. Starbucks in Japan is one of the cheaper options for food and coffee. I can get a sandwich and a specialty matcha latte there for under $8.
The CEO doesn’t have a clue. Companies that bet big on China and the CCP end up paying for it at some point-look at Tesla and Starbucks. Secondly, the bread and butter for Starbucks are the masses. It’s no longer a “premium” coffee brand-but yet-they think that they can just raise prices endlessly with no ramifications. Starbucks has the buying power, the distribution power, has a solid online infrastructure with its app to reduce prices and gain market share. The margin that they would be sacrificing on each individual transaction would totally be made back with profit through the increase in volume. Starbucks should be using their size and buying power to put pressure on Tim Hortons, Dunkin’ and McDonalds--yet-they are just letting those other companies take market share from them.
Cramer’s questions were very on point but that CEOs answers were terrible. There are many reasons only for this interview this CEO to be fired. Looks like the dude has no clue what’s next and no answers.
The last time I walked into a starbucks I was in a slight rush, I had about 8 minutes for a latte which seemed like lots of time. There were zero people in line and they couldn't give me my over priced drink in that time so I got a refund. They are all about pre-ordering on the stupid app and serving the drive thru, which alienates people who just want to walk in and get a over priced coffee without ordering food through their phone.
It costs Starbucks like 50 cents to make each of their coffees. Yet they charge $7. Wonder why they are getting less customers. Starbucks shouldn't be charging more than $3-4 for a coffee. That's enough profit per coffee but these people are greedy.
What do you think it costs Apple to manufacture an iPhone? What do you think it costs Microsoft to make a CD with Office on it? This is standard margins for American businesses. As shareholders we look for ROE which is impossible for a F500 company to provide without large gross margins.
@@tvm73827standard margins for a world that no longer exists, a dying world of corporate nihilism. This is the beginning. People are speaking with their money because voting clearly isn’t doing that.
The labor and overhead is the killer. The profit margin is very high but the relative cost per transaction is very small. If they got rid of baristas, we would see a whole new level of profit. So far, no mention of this, even though McDonald’s is starting to do it.
My wife use to go there daily as well. In fact, that’s where I met her! She doesn’t go anymore because the drinks are loaded with sugar and she’s learned how that impacts her diabetes and she also doesn’t tolerate caffeine anymore and they don’t cat or to decaffeinated drinks at all. They need to make these change to stay relevant. Reduce sugar (keto trend) and offer decaf across the menu.
This guy cheated his whole way through school. Even today he copied McDonald's F tier excuse from yesterday: That they failed to communicate the "value" of their food. Despite spending a billion dollars in advertising. Why do any of these people get paid? Capitlism is apparently not a meritocracy.
If you’re gonna charge this much for a cup of coffee, have atleast a decent and clean washrooms in your stores. Who wants to go to a pin locked dirty washroom?
Buying one pack of organic milk can be used more than a week rather than having Starbucks one cup of coffee.. I hope this drop will make them realize their mistake of price hike..
Keeps talking about how they bring great value, yet dodges the question on why consumers are not going to starbucks as much and decreasing spending. I may not be the ceo of starbucks, but let me take a wild guess. Maybe its because the overpriced coffee/drinks that you guys are selling and keeps increasing the price, and the "please leave a tip" when you're at the drive through or the cash register?
Non of the other competitors have the reputation of being known as the “pro Israel” brand that’s why. Never mix politics with business, but not the current CEOs fault
We as customers didn’t cut back….we CUT OUT going at all to Starbucks. It started with expensive junk drinks and food items. Then came the WOKE war against most customers (we can get into all details). At some point enough is enough so we went bye bye a few years ago. I now support other private local coffee shops and avoid these evil corporations as much as I can.
Thank you Jim and the crew for grilling the CEO to help us the tiny shareholder. Sick of these C Suite that never provide any substance and meaning in their conversation, bunch of BS and time wasting.
Millennials are growing up and starting to get better about there finances. $8 dollar coffee is insane. Also interest rates/inflation are pushing everyone!!!
just came back to China last week after almost 2 years in the U.S. ppl here have largely moved on from starbucks to luckin coffee and a bunch of other cheaper domestic coffee brands. You can get better flavored coffee for 1.5bucks vs 5bucks starbucks. They are kinda done done in China (and it has nothing to do "choppy recovery" in China if you look at luckin coffee's earnings. ppl are continuing to drink more coffee just not starbucks coffee lol)
@@X4g6d7 they are entering singapore right now. that said, i expect starbucks to still be the no1 coffee brand internationally. luckin might have a shot in other asian countries like Japan, Malaysia and Thailand. Korea has too much domestic competition and they kinda just drink americano not flavored latte
Starbucks rarely gives customers a full cup of beverage. I have complained so many times to store staff about this. I have had two experiences where I got the drink and tipped my cup to 45 degrees in front of the staff without getting any liquid out of the cup. When I questioned the beverage, the staff told me it came naturally. They cannot fill the full cups because the latte always has forms.
When your value is to close stores rather than letting your staff unionize in those stores, that is the main value of Starbucks that sticks in my mind!
Not one mention of pricing. SBUX can communicate all it wants from the rooftop about "value" but in the end it all comes down to the price for a cup of coffee and quite frankly at $3.15 per tall (small) coffee in my neighborhood, there are plenty of alternatives (McDonalds, etc.). Starbucks' pricing power is not so sticky that customers will not seek alternatives. Just my opinion
I took 1 year United club membership considering my business travel and in 6 months my net business expense has reduced by replacing the Starbucks at the airport with United club food and coffee 😊. A tall WC mocha is $9.11 in EWR airport Starbucks .
This. The media won’t admit it but many conservatives won’t support this woke company anymore. We saw it with target, we saw it with bud light and we’re seeing it now with Sbux. Go woke go broke. Conservatives are less willing to give their hard earned $ to woke companies anymore
No one can afford $10 for a $1 cup of coffee. Last time I went it was $7.80 +tax with a suggested 22% tip for a total of $10+ and I know the cost excluding labor is about $1 or less because that's wha tit costs me to make it. If I was Starbucks, I would take the top 10 drinks and set the price at $5 for the largest size for each drink with tax and tip included. Make your money on volume. Get people in the habit of going to stores and get them addicted. Find other ways to upsell but get sales.
Mocha went from $4.75 by my house to $6.25 in 24 months. Was already overpriced before the price hike. That's why your quarter sucked
You must pay carbon taxes owed to.coumtry like Guyana. But John Jerry won't tell you 😊
Lol
Are you the type does do not provide the 18% tips?
Yeah the price increases were so bad. I stopped going to the stores
@@Ravi-re1bt well last WEF already discussed to charge carbon over your points😂😂
I just spit out my coffee when he said “ we didn’t communicate the value we provide” …… since when is a 300x markup considered “value”…….
😂😂😂
Hope it wasn’t Starbucks coffee
LOL. Really has to laugh at that statement.
I think one of my blood vessel just bursted😂
Couldn’t have said it better
wow Cramer actually grilled an executive
Probably has skin in the game
@@bluezaton yeah that probably explains it
@bluezaton im pretty sure cramers charitable trust owns sbux
@@bluezaton Lol he's thinking this guy talks about customer value and the stock plummeted he must be mad not to short it now.
Tbf he's no Elizabeth homes
I'm not usually one to call for a CEO to resign, but this was an awful performance by Laxman. He seems at a loss for words, just parroting back the same lines over and over again. I think the board needs to look for a new CEO, as SBUX strategy is clearly failing. His insistence that Starbucks coffee is a "good value" is silly. It's a premium product that became too expensive, with costs above their peers. They raised prices too much and consumers are going elsewhere. A basic small coffee should not be over $5.
classic case of losing touch with your customer. Elon recognized this problem in EVs and cut prices immediately and that helped Tesla a ton. If Starbucks announced they will cut prices 25% the stores would be mobbed again. Idk what the right number is to cut but coffee demand is definitely not dropping.
not exactly -- the problem is that its not a premium product anymore, but is still priced like one. you have to pick: value or premium. You cant charge like its premium and not deliver -- people will go elsewhere.
I agree. He needs to go. And the problem isn’t his performance here. It’s the fact that he’s putting on a performance in the first place. State the facts and move on to the business of fixing the business.
well this aged like wine
Tesla hasn’t been doing well as of late either
Not really instilling confidence in Starbucks...
Would you believe this guy makes 14 million dollars a year being this bad
@@jonnybinder 🤦🏻
he is selling overpriced coffee, what value is he talking about?
selling "an experience".... whatever that means
corporate mumbo jumbo, they all talk like that. He could have said something as simple as "we will be offering more deals and discounts in the app than before" and that would have sufficed instead of rambling for 2 minutes about vague nonsense.
@@abbottmd experience to go broke lol
Robotic infused coffee value
And served incredibly hot to take a sip... that is not how coffee works :))
"We're working on action plans" should worry everyone. Those are not the words of a leader, that's a manager.
action plans == its over
Their only action plan is to lay off workers
@@abhir4982pretty much ….. I’m selling my Starbucks shares. Too many other options for coffee.
thats literally the verbiage that middle management at cvs uses 🤣
well said.
Who’s here after he got fired
Me🖐
Yep. I now see why he was fired. What a mealy-mouthed technician talking of action plans. (Can't even call him a "leader."
Yes. Good to see him gone. He was in serious denial.
“Value we provide”
Dude.. it’s coffee.
I’m a big Starbucks coffee fan, but this line doesn’t make sense.
Can’t wait for Luckin to come to the US so can break up the Starbucks monopoly
@@hh0686 just buy from a local cafe/coffee shop, everything is overpriced because these giant chains stiff arm every small business so they have little competition. Another one coming in from China and doing the same thing doesn't change the problem.
You should be boycotting them if you are not a nazi
@@retrodripsupport7510 most of the time even Chinese chain giants still keep prices below the American counterparts just to stay competitive. Say BYD vs Tesla, Huawei vs Apple
yup@@retrodripsupport7510
Laxman did not explain why he did not prepare the market for this bad news. He kept saying they are working on a plan to translate value to the occasional Starbucks client. It sounds to me like a non answer. Count on more stock price depreciation.
Starbucks CEO: We should do a better job communicating to customer why our Ice Latte is valued at $7.
I get premium italian ice-cream in my area for that price..
7$? Oh my! Absolutely crazy!
If you want an iced White Mocha with foam on it its going to cost you close to $10. A single cake pop is almost $4.
how does a CEO of a conglomerate not know how to handle questions? Because of this interview, I lost whatever confidence in SBUX's recovery.
In defense, there wasn't anything he could say. What is there to say when the company didn't perform? Especially given something like a coffee business. At least with tech you can trick shareholders (a la Elon Musk) and just say big words, repeat "artificial intelligence" and then the stock price shoots up. With selling coffee what do you say? That we will sell more next quarter? That's about it. hahaha.
Not trying to defend him. It was a bad interview. I just don't know what you could say.
bring back the old guy
@@Swagtildawn Maybe the CEO could choose not to appear on TV to avoid embarrassing himself? There is no law that says CEOs must do TV interviews after earnings calls. In fact, many executives of public traded companies rarely do any interviews.
Bro looks so nervous lol. Prices are horrifically bad value
Blinks hundred times more than my grandpa
The CEO is probably already booking flights to Monaco with that severance package he has coming
Their coffee is pricey and worst than Macdonald’s coffee so I don’t know what is a reason Y we need to return.
I prefer the Burger King coffee ☕️
@@SpacerMatchaSpirit88 for real you can get a McDonalds coffee for $2 where I am.
A single cake pop is almost $4. If you want an iced white mocha with foam on it, it’ll cost you close to $10. And half the cup is ice.
An iced White Mocha with cold foam is literally 5.25 (grande).
Jim ia a looser.
He is an almeada clown.
Jim in a rasist
Why can't Jim be like this with all CEO's?
Because he’s probably long on Starbucks and lost a bunch of money haha
@@themusic6808 he isn't long any stocks
Too much jargon and not enough action plan, time to sell
Very good observation
New CEO needed, this guy was blowing smoke out of the rear end. High prices, the result of corporate greed, is the cause of this value miscommunication. Plain and simple!
I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts with experience since the 08' crash
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
Svetlana Sarkisian Chowdhury a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
let me help you out mr CEO, your customers ordering on mobile bogging down your store every weekday makes it so you can’t walk in and get a coffee anymore. so we now go to smaller coffee shops where we can walk in and actually get a coffee and not be late during the week. then when the weekend comes around we got used to better cheaper coffee and bathrooms that don’t smell like urine so we decide to go there again. I hope this helps you stop your declines over the next couple quarters
Then people go on to criticise Jim: he is brilliant here, showing the weakness of this CEO
one of his better performances , obviously long
He doesn't have the guts to mention the boycott!
Wow. Jim really grilled him. Very rehearsed answers by the CEO. He needs to improve his overall delivery
this feels relevant to me. I don't go to Starbucks at all any more. Too expensive. Better service and value from supporting smaller more local businesses. I don't just go to Starbucks less frequently, I actively avoid it now, and didn't really think about it much until watching this rambling interview
I love how he pushed the dude on his bad numbers. He was right to do so and was not shy about it. Good interview.
Aside from the extremely high prices and terrible food menu they have also created a toxic working environment for their staff by reducing headcount in stores to the point where everyone feels intense pressure. This company needs a new CEO to clean house and change the culture. You can charge premium prices for premium products and service but they're trying to charge premium prices for mediocre products and declining service all in the middle of an inflation/cost of living crisis. I wouldn't touch this stock with a 10 foot pole until this CEO is gone.
The food menu is sad and needs an upgrade. Also, they need decaffeinated options. If they made these two changes, I would go there pretty often, but as is, I go a few times a year. The CEO has the power to make these upgrades but I have not seen any meaningful change in the last year. It’s just been addling locations while those they have are loosing market share as it is.
Your assessment was spot on!
Rough interview for this guy
He doesn’t care. He knows he can’t control the biz nor the share price. He just have to be able to talk and convince the Anglo Saxons to continue to not remove him as the CEO.
Anglo Saxons. ha. More like the Larry Fink's and Jeremy Dimons
@@bobbobertson7568 ding ding ding
@@bobbobertson7568 anglos saxons have left the building a long time ago unfortunately
cuz creamer has been holding his bag since 120, lol
Jim grilled him like a man who owns a fair amount of the stock. Would like to see more of this Jim!
CEO speaking Straight from McKinsey’s slides - Jargons and talk totally removed from reality
one more bad quarter this guy is gone.
People will want Howard Schultz back, like everyone wanted disney to bring Iger back
Any moment now…
no，he has to go now！
why would u want him dead?
Didn't howard hire this guy?@justinspire6058
lol ppl are clueless that ppl under 30 years old are boycotting Starbucks over the Israel/ Palestine war. 🤦♂️. My daughter hasn’t bought Starbucks all year. She’s still spending on Dunkin and Dutch Bros.
God bless your daughter for standing against injustice.
@@dargay386 I think young ppl are just tired of these 70 year old war hungry leaders on both sides.
what does the boycott against Starbucks do for that war ? every kills in that part of the world
This clearly played a major part in the bad results.
But what i don't get, is: what exactly did Starbucks do to deserve a boycott? They sued the union which took a pro-Palestine stance while illicitly using the Starbucks logo. So what? It simply shows that Starbucks wants to remain apolitical and doesn't tolerate anyone taking a stance in their name. It doesn't mean they're actively supporting Israel.
This boycott makes no sense to me.
@@stephenkatz1032 it’s a standard pressure campaign. Adjacent companies that support a cause start to hurt when being boycotted. Their overt support for said cause is theorized to decline.
It’s pretty textbook.
It's strange that his main strategies seem to be communicating value to the consumer and promotions. Neither of those is as effective of a business model as ensuring the core offering is something consumers want (and this includes price).
absolutely agree. consistency and service have been bad for a while. price is just the last straw for people. every time they bring schultz back he focuses on consistency and service. every time some other bozo takes over, they focus on promotions.
Yes, I think he's failing to see the problem - and you can't fix what you won't acknowledge
This was brutal.
Sbux needs to get rid of this CEO hack.
Back to selling Clorox for this guy!
Value!!!, it is expensive
I can sense how under pressure this guy is, his job is in jeopardy, calm down and bring lower prices with same quality and next quarter will be better!!!
I give him less than 12 months before he's out.
Starbucks is $74 right now. It was the very same price exactly 5 years ago. No growth. And it was $37 in 2014!!! Only a double in 10 years. Ouch.
Not a huge Cramer fan and would never be long starbucks but he crushed it here. Hold these people to task on the BS.
They need to lengthen their hours and reduce their prices...And apparently they don't want you coming into a store anymore...Just go to the drive thru and throw your money out the window. Their cup sizes are ridiculously small for what they are charging.
Holy crap. After listening to the CEO im looking at getting out!
Same. I don't think these issues will be resolved
I was going 6 times a week but throwing away the horrible coffee 50% of the time. I also was tired of the tipping and then having to throw away bad coffee after.
You have to tip at Starbucks?
I never tip at Starbucks.
plus served extremely hot to take a sip w/out a burn... that is not how coffee works :))
God this is so accurate. . Im literally sipping on a cup right now and kinda dissapointed but I also have skin in the game XD
Pastry and plastic wrapped food at Starb. are null and void. Colorful drinks aren't coffee.
Cramer is only mad because he's long Starbucks.
lol certainty very transparent he's long
He knows this guy is telling sh*t.
Did he have a stroke or something? His speech is garbled
but what are they going to do about the occasional customer?
Jimmy was mad!
He holds that cr*p
They are learning that there is in fact a ceiling to what people will pay for…coffee. Stop using the word “value”, for the prices they charge it simply does not compute.
Value ? 6 plus gor coffee drinks? Value ?
Does Starbucks serve more milk than coffee? I rarely see a customer ordering only coffee. Mostly, I observe customers ordering milk-based concoctions full of syrup with a splash of espresso. Usually 16oz or larger with at least 250 calories. None of which I consider coffee.
He is not kidding in Japan. Starbucks in Japan is one of the cheaper options for food and coffee. I can get a sandwich and a specialty matcha latte there for under $8.
The same thing in the US would be $16 with probably lower quality ingredients lmao
He did the McKinsey there are three reasons thing 😂
Please tell me he is not from that crap-machine consulting company.
@@rufuspipemoshe worked there for 20 years
The CEO doesn’t have a clue. Companies that bet big on China and the CCP end up paying for it at some point-look at Tesla and Starbucks. Secondly, the bread and butter for Starbucks are the masses. It’s no longer a “premium” coffee brand-but yet-they think that they can just raise prices endlessly with no ramifications. Starbucks has the buying power, the distribution power, has a solid online infrastructure with its app to reduce prices and gain market share. The margin that they would be sacrificing on each individual transaction would totally be made back with profit through the increase in volume. Starbucks should be using their size and buying power to put pressure on Tim Hortons, Dunkin’ and McDonalds--yet-they are just letting those other companies take market share from them.
Cramer’s questions were very on point but that CEOs answers were terrible. There are many reasons only for this interview this CEO to be fired. Looks like the dude has no clue what’s next and no answers.
I like Starbucks but what Jim asked was spot on. The CEO was still planning failure.
When they ask for a tip when I go through drive through was the end of my starbucks patronage.
I haven't been to the states for a while. You are not joking?
@@definitelyno601lots of places do this now, not just starbucks
@@definitelyno601I have never been asked to tip.
Same here... 18% tips for those liberals baristas getting college loans forgiveness from my taxes....? just forget it... Lol...
It's wild that companies refuse to pay their employees enough and demand that customers fund their salaries too. Country is broken.
The last time I walked into a starbucks I was in a slight rush, I had about 8 minutes for a latte which seemed like lots of time. There were zero people in line and they couldn't give me my over priced drink in that time so I got a refund. They are all about pre-ordering on the stupid app and serving the drive thru, which alienates people who just want to walk in and get a over priced coffee without ordering food through their phone.
roasted ☕️
Dark Roasted
I think the video cut the last portion, which was even worst.
Kek
😂
I quit Starbucks long ago… just don’t see a compelling reason to go back either.. they are mid..
Schultz is the only ceo that has ever made starbucks work
It costs Starbucks like 50 cents to make each of their coffees. Yet they charge $7. Wonder why they are getting less customers. Starbucks shouldn't be charging more than $3-4 for a coffee. That's enough profit per coffee but these people are greedy.
What do you think it costs Apple to manufacture an iPhone? What do you think it costs Microsoft to make a CD with Office on it? This is standard margins for American businesses. As shareholders we look for ROE which is impossible for a F500 company to provide without large gross margins.
@@tvm73827standard margins for a world that no longer exists, a dying world of corporate nihilism. This is the beginning. People are speaking with their money because voting clearly isn’t doing that.
The labor and overhead is the killer. The profit margin is very high but the relative cost per transaction is very small. If they got rid of baristas, we would see a whole new level of profit. So far, no mention of this, even though McDonald’s is starting to do it.
@@tvm73827MacBook sales are down, iPhone sales are down. Turns out people aren't buying these products.
Used to do Starbucks daily long time ago. With the prices rising, we have completely dropped visiting Starbucks.
My wife use to go there daily as well. In fact, that’s where I met her! She doesn’t go anymore because the drinks are loaded with sugar and she’s learned how that impacts her diabetes and she also doesn’t tolerate caffeine anymore and they don’t cat or to decaffeinated drinks at all. They need to make these change to stay relevant. Reduce sugar (keto trend) and offer decaf across the menu.
The problem with Starbucks coffee isn’t that it’s too expensive, it’s that it sucks
Nah its good quality coffee, just way too expensive
This guy cheated his whole way through school. Even today he copied McDonald's F tier excuse from yesterday: That they failed to communicate the "value" of their food. Despite spending a billion dollars in advertising. Why do any of these people get paid? Capitlism is apparently not a meritocracy.
Value, value, value! Dude, when your drinks are overpriced, there’s no freaking value! You just don’t get it!
They have WiFi and seating though! That’s was cool a decade ago but it’s not enough these days.
If you’re gonna charge this much for a cup of coffee, have atleast a decent and clean washrooms in your stores. Who wants to go to a pin locked dirty washroom?
Cramer must have held a lot of shares through earnings lmao
Buying one pack of organic milk can be used more than a week rather than having Starbucks one cup of coffee.. I hope this drop will make them realize their mistake of price hike..
Some company looks like they need a new CEO 🤣
Keeps talking about how they bring great value, yet dodges the question on why consumers are not going to starbucks as much and decreasing spending.
I may not be the ceo of starbucks, but let me take a wild guess. Maybe its because the overpriced coffee/drinks that you guys are selling and keeps increasing the price, and the "please leave a tip" when you're at the drive through or the cash register?
Yea, the tipping thing is really starting to bug me to the point I avoid buying food and drinks out.
Non of the other competitors have the reputation of being known as the “pro Israel” brand that’s why. Never mix politics with business, but not the current CEOs fault
Laxman: answer the questions Jim is asking!
We as customers didn’t cut back….we CUT OUT going at all to Starbucks. It started with expensive junk drinks and food items. Then came the WOKE war against most customers (we can get into all details). At some point enough is enough so we went bye bye a few years ago. I now support other private local coffee shops and avoid these evil corporations as much as I can.
Go woke go broke. We saw it with bud light, we saw it with target and we’re seeing it now with Starbucks
I’m always impressed with people who can stay calm and focused during these high-pressure grillings. I’m still working on this in my own career.
So am I. The problem is the style thus guy adopts just annoys the interviewer and creates more pressure.
Strangely enough you won’t find drip pre made in Japan. It’s all ground in front of you.
Thank you Jim and the crew for grilling the CEO to help us the tiny shareholder. Sick of these C Suite that never provide any substance and meaning in their conversation, bunch of BS and time wasting.
You can tell this guy doesn’t listen to anyone on his team. “Action plan”
Stop allowing stores to ask for tips on a 7 dollar coffee.
Exactly. It’s an insult when you pay over $7 and on top they almost force you to tip…
I agree. The high prices compounded by “tipping guilt” these days is making me reluctant to buy anything other than groceries.
Millennials are growing up and starting to get better about there finances. $8 dollar coffee is insane. Also interest rates/inflation are pushing everyone!!!
And cutting back on sugar/chemicals. Starbucks needs to get with the Keto trend because it’s likely here to stay.
Yes, I'm in Asia and yes, Starbucks so expensive. I don't know what value the CEO is talking about.
$3 for a tall ice tea (ice, water and maybe 2 tea leaves) is a great value?
3:07 he talks about "bundles" and says a "beverage and a drink at a certain price". A beverage is a drink sir
Well that wasn't inspiring.
Hmmm skyrocketing cost of living, less visits? What could go wrong?
I don't own Starbucks stock but if I did, not only would I sell...but I would short!
I've never really liked Cramer, but in this instance I am so happy that he doesn't let a person speak b******* to his face
just came back to China last week after almost 2 years in the U.S. ppl here have largely moved on from starbucks to luckin coffee and a bunch of other cheaper domestic coffee brands. You can get better flavored coffee for 1.5bucks vs 5bucks starbucks. They are kinda done done in China (and it has nothing to do "choppy recovery" in China if you look at luckin coffee's earnings. ppl are continuing to drink more coffee just not starbucks coffee lol)
Is Luckin Coffee expanding outside of China?
@@X4g6d7 they are entering singapore right now. that said, i expect starbucks to still be the no1 coffee brand internationally. luckin might have a shot in other asian countries like Japan, Malaysia and Thailand. Korea has too much domestic competition and they kinda just drink americano not flavored latte
Starbucks rarely gives customers a full cup of beverage. I have complained so many times to store staff about this. I have had two experiences where I got the drink and tipped my cup to 45 degrees in front of the staff without getting any liquid out of the cup. When I questioned the beverage, the staff told me it came naturally. They cannot fill the full cups because the latte always has forms.
this is the guy who is being CEO and wanna go home by 6pm 😂
May be if he had spent some more time working on the figuring out what can be improved at his job.
Best interview by Cramer this year by far, really great questions.
When your value is to close stores rather than letting your staff unionize in those stores, that is the main value of Starbucks that sticks in my mind!
why was the interviewer so angry? must be holding stoks of Starbuks??
Not one mention of pricing. SBUX can communicate all it wants from the rooftop about "value" but in the end it all comes down to the price for a cup of coffee and quite frankly at $3.15 per tall (small) coffee in my neighborhood, there are plenty of alternatives (McDonalds, etc.). Starbucks' pricing power is not so sticky that customers will not seek alternatives. Just my opinion
After listening to this I value the stock at $30
No starbucks no fast food beautiful life feel freedom
how is it that you show value to the "occasional customer" by forcing them to use an app just to not get ripped off?
Tough questions for a change. You should try it more often.
During Recessions, premium coffee retailers suffer.. are we in one?
I took 1 year United club membership considering my business travel and in 6 months my net business expense has reduced by replacing the Starbucks at the airport with United club food and coffee 😊. A tall WC mocha is $9.11 in EWR airport Starbucks .
The Boycott Effect
This. The media won’t admit it but many conservatives won’t support this woke company anymore. We saw it with target, we saw it with bud light and we’re seeing it now with Sbux. Go woke go broke. Conservatives are less willing to give their hard earned $ to woke companies anymore
Why are there so many Asian CEO’s in the US now.
Asian people live and are born in America. And immigration exists. What color do you want American CEO's to be?
Chatgpt could have given better answers than this CEO.
No one can afford $10 for a $1 cup of coffee. Last time I went it was $7.80 +tax with a suggested 22% tip for a total of $10+ and I know the cost excluding labor is about $1 or less because that's wha tit costs me to make it. If I was Starbucks, I would take the top 10 drinks and set the price at $5 for the largest size for each drink with tax and tip included. Make your money on volume. Get people in the habit of going to stores and get them addicted. Find other ways to upsell but get sales.
looks and sounds like a CEO who took classes on how to "act" like a CEO
This is classic! Cramer being tough on poor Starbucks CEO who’s unable to communicate the “Value” in 8 dollar coffee 😂 memeworthy!!