Starbucks Oleng. Karena Boikot? Schultz Bilang Begini

Summary

The video script discusses the global sales decline of Starbucks, including a 4% drop in the US and an 11% plunge in China, attributing factors to boycotts and economic impacts. It highlights the company's strategies to revitalize its brand, such as improving mobile ordering, introducing new products, and enhancing customer experience. The script also points out the opportunity for local coffee brands to compete in the market, emphasizing the importance of hospitality, efficient business management, product innovation, and building a strong brand story.

Takeaways

• 📉 Starbucks is experiencing a significant drop in sales globally, with a 4% decrease in global sales and a more pronounced 11% drop in China.
• 💸 The decline in sales has impacted Starbucks' revenue, which was expected to reach $9.1 billion but only achieved $8.6 billion in the last quarter.
• 📉 Net income and earnings per share have also been affected, with net income dropping from $807 million to $772 million and earnings per share from $0.80 to $0.68.
• 📉 The stock price of Starbucks fell by 17%, reflecting the market's response to the company's financial performance.
• 🌐 The CEO of Starbucks acknowledged the challenging environment and expressed that the results of the quarter do not reflect the company's strength and future potential.
• 🏺 There is a perception that the sales drop is due to boycotts, particularly in regions with a majority Muslim population, impacting stores in the Middle East.
• 📊 In Indonesia, the licensee PT Sari Coffee Indonesia reported a significant sales drop of up to 35% due to the boycott against Israel.
• 🔍 Analysts have differing views on the impact of the boycott on Starbucks' operations and stock value, with some suggesting it's not the main cause.
• 🛠️ Starbucks' founder, Howard Schultz, is re-engaging to address the company's challenges, emphasizing the need for introspection and a return to core values.
• 🚀 Starbucks is implementing strategies to revitalize its mobile ordering and payment platform to adapt to changing market needs and improve customer experience.

Q & A

What is the current situation of Starbucks' sales globally?

Starbucks' sales have been declining globally, with a 4% drop in sales at their stores worldwide.

How has the sales performance in China affected Starbucks' overall performance?

In China, Starbucks has experienced a more significant drop in sales, with a decrease of up to 11%, which has impacted their overall revenue.

What measures has Starbucks taken to counter the decline in sales?

Starbucks has tried various strategies, such as offering 50% promotions and introducing new product variants like Lati lavender.

How did the sales decline affect Starbucks' projected revenue?

The sales decline has caused Starbucks' revenue to fall short of their projected $9.1 billion, reaching only $8.6 billion in the last quarter.

What was the impact of the sales decline on Starbucks' net profit?

The net profit for Starbucks in the first quarter ending on March 31 was recorded at $777.2 million, down from the previous year's $808 million.

How did the stock market react to Starbucks' performance in the quarter?

Starbucks' stock price dropped by 17% within just two days, from $88.49 per share to $73.11.

What is the CEO of Starbucks' stance on the company's current challenges?

Lexman Narasimhan, the CEO of Starbucks, acknowledged the challenges and stated that the results of the quarter do not reflect the company's strength, capabilities, and future opportunities.

What is the connection between Starbucks' sales decline and the boycotts, particularly in Muslim-majority countries?

Some outlets of Starbucks in Muslim-majority countries have experienced significant economic impacts due to boycotts, leading to layoffs of around 2,000 employees.

How has the boycott affected Starbucks in Indonesia?

In Indonesia, PT Sari Coffee Indonesia, the licensee of Starbucks, reported a significant drop in sales, with a 35% decrease attributed to the boycott.

What is the impact of the BDS movement on Starbucks and other brands?

The BDS (Boycott, Divestment, Sanctions) movement calls for international action to end Israel's occupation of Palestinian territories and promotes boycotts of brands involved in Israel's policies towards Palestine, affecting the sales of Starbucks and other brands like Yum! Brands and McDonald's.

What strategies does Starbucks plan to implement to revitalize the brand and improve customer experience?

Starbucks plans to revitalize the brand by revamping its mobile ordering and payment platform, improving operational efficiency, launching new products, and focusing on customer experience through a 'triple shot' strategy.