Starbucks Is In Trouble - Can This $113M CEO Save It?

[@SoManyButtonshere]

Maybe no one is paying $10 for a cup of coffee because they can't feed their kids.

[@GSBarlev]

As someone who has ordered $10 cups of coffee¹, I can't imagine Starbucks ever serving a $10 cup of coffee. ¹Priced for rarity of the bean-for example, Panamanian coffee and synthetic Kopi Luwak are both "worth" the $10 owing to (1) their novelty and (2) that premium being used to kickstart a growing region that's in its infancy, and breakthroughs in bio-engineering, respectively.

[@Critter145]

GAWDDAM

[@Xeonerable]

Everything is going up except people's pay to the point where common folk can't really afford as much anymore. Then companies put on the surprised pikachu face like their greed had nothing to do with that result.

[@malice4422]

@@GSBarlevit’s not hard to get $8+ if you add a customization or two and a tip

[@GSBarlev]

@@malice4422 Oh, if we're considering lattes and the like, sure. I just meant a straight-up cup of drip.

[@thunderb00m]

i absolutely refuse to go to chipotle and starbucks. there are so many better local options. there is an upper limit to their prices which i think they have already reached.

[@hachetjoel]

They need the amount the cup is filled to be as unpredictable as possible

[@ian562ADF52E]

@@hachetjoel new way to generate random numbers

[@israelcruz7180]

A little disappointed in how little attention to Union negotiations got in this video. One of the big reasons he was hired was because of his ability to crush unions.

[@accountability2000]

Agree!

[@kjc6939]

did you watch the video?

[@ahmedalshabrawy202]

​@@kjc6939 It's little than a minute in 11 minutes video

[@superkenshi6620]

why is “raising prices” and “decreasing the amount of food served” hailed as the works of a genius? this is the answer you’d get in the first week from any intro to economics student across the country if you ask “how can a restaurant make more money”

[@kinghenry3693]

Increasing share prices=genius

[@JRay2113]

That’s not the solution for Starbucks. I answered it in a separate comment. But the real issue is that Starbucks has an optimization problem. Raising prices and cutting costs is a consultant/MBA solution. But they need more engineering to solve this problem. Manufacturers use industrial engineers for these types of problems because of its complexity. And that’s what Starbucks is.

[@freshyrocks]

Because he raised prices, reduced serving size while ALSO increasing sales. That is not the way it usually goes.

[@jameslim3850]

Actually many Billions of Muslims and Chinese have boycotted Starbucks because of its support of Israel attacks killing Palestinians and Western extreme bullying and sanction of China's products.

[@nickc3856]

This continues to be an excellent and criminally undersubscribed channel

[@NineteenEightyFive]

i know this beginning of the video is at least semi satire but it works even if taken 100% seriously lol

[@bhaskarmukherjee4768]

Is he the one jetting into work from SF to Seattle 3 times a week ?

[@bh4462]

Correct. All while Starbucks pretends to be a company that cares about its workers and the environment.

[@kasenpalmer1964]

Even further! He will commute from Newport, CA (a city in Orange County) up to Seattle, all paid for by Starbucks.

[@bruceneihart7143]

@@kasenpalmer1964 in the corporate jet. Not Row 38-Middle seat............

[@Random_dud31]

​@@bruceneihart7143thats still about 500 times emissions for just one guy. Private jets are not as efficient as cars

[@jameslim3850]

Actually many Billions of Muslims and Chinese have boycotted Starbucks because of its support of Israel attacks killing Palestinians and Western extreme bullying and sanction of China's products.

[@pixelatedmushroom]

just another overpaid, recycled face that gets an undue share of the profit

[@jz4461]

You know that profit is measured after employees, including the CEO, get paid. Right?

[@JRay2113]

Starbucks has an optimization problem. When you’re producing large volumes, a loss of 1% is massive. Manufacturers use industrial engineers to solve these problems. But you can use them for services too. Disney uses them at their parks. Tim Cook’s Apple is also an industrial engineer. It’s all about efficiency. Keeping things simple can get you large returns at that scale. FYI, MBAs and consultants are actually subpar optimizers.

[@woowoo2358]

What do you mean by optimization? Can you give an example of the optimization used by Disney and apple? Just asking as someone genuinely curious and doesnt know much about business

[@themundanemidwesterner8855]

3:27: While I agree that's true, they need to stop rolling out so much different crap at one time and stop allowing so many modifications. Those are BIG problems in and of themselves as we're constanly having to make sure we've got everything in the drink before finishing it. Also, they need to fine tune the app to show how busy a location is BEFORE the order is placed, and maybe a message saying, "Don't show up in the drive-thru right away you place your mobile order. It doesn't "help" your barista." I lost count of how many times people do that.

[@infamousprince88]

Minimizing drink modifications is rumored to be part of the strategy and staffing appropriately to handle such demand. Haven't heard anything regarding the app but the "busyness" index seems like a doable and great feature. The message "Don't show up in the drive-thru..." would be an interesting social experiment. Personally, I don't think people listen, read, or are self-aware enough to do what is best over doing what they feel like. If they go through a re-design of their locations, they will need to design in a way that prompts mobile order customers through the proper steps in their customer journey, somehow

[@mateomoore6385]

i perceive chipotle as a shitty brand giving u less and less food as a result of niccol

[@KemperHolt]

That is probably true if you order online, but in person I just ask, repeatedly if necessary, for more rice/beans/ peppers etc. and I get 2 meals from a single order, just ask for more.

[@ian562ADF52E]

And extremely anti-union practices. :/

[@TheLetheProject]

I came here to say this! 😢

[@jameslim3850]

Actually many Billions of Muslims and Chinese have boycotted Starbucks because of its support of Israel attacks killing Palestinians and Western extreme bullying and sanction of China's products.

[@flakgun153]

His history is actually wild. Yeah I can see why shareholders would drop him 113m

[@Frahamen]

If I want an overpriced novelty coffee, I go to a local cafe, not an American union busting megachain. If I want a coffee on the go, I stop at a kiosk in the station or even on a train if that's an option, not an American union busting megachain.

[@Power0fM]

That fiddle leaf fig plant is in sharp focus👌

[@allykazam3268]

This was an informative, insightful, and entertaining video! I definitely learned something about the current fast food market. Nice job!

[@eq.8640]

You guys are really really good! I’m constantly impressed by these two hosts in the shorts and this video too!

[@Xeonerable]

Niccol jumping ship from Chipotle before the effects of his decisions finally hit the downturn as people are turned off by chipotle. I haven't eaten there in years and have had no desire to.

[@gabrieljosue2451]

Lets be fair here. Some athletes have compensation packages in the 100s of millions for hitting a ball with a wooden stick. The guy is responsible for the survival of 38,000+ starbucks locations worldwide and 402,000 employees.

[@brianperlinger5197]

Let's get two 12 year old girls to do our fake sports report.

[@MSportsEngineering]

He turned Taco Bell into VW. Discount-quality product at a premium price. I'm terrified to see how high he makes the Starbucks prices. Love the video (hate the man)

[@arpitjain7366]

U guys never fail to amuse me!

[@user0055]

Lmao if they think the ceo is what makes chipotle so successful

[@jz4461]

Over 50% for sure. CEOs are critical, and great ones are hard to find

[@Arpit89]

​@@jz4461CEO get credit for things that can be done by any manager at an outlet the problem is the top management take decision for all outlets his idea of separate staff for online orders is so simple that anyone with a functioning brain can come up with it but he is being paid millions for it

[@vitsadelhole]

it is the reason actually

[@user0055]

@@vitsadelhole nah, you’ve probably never ate Chipotle before

[@vitsadelhole]

@@user0055 thats your argument!

[@santostv.]

Considering Starbucks a coffee shop should be a cr1me

[@dh7314]

True. Nobody who actually appreciates coffee drinks there, it basically sells deserts in a cup. Sweet syrupy garbage for influencers

[@bruceneihart7143]

@@dh7314 Friends don't let friends drink *-bucks. Burnt and bitter!! Also charge extra for plant-based milk.

[@Novacification]

The fact that the value of these companies has mostly become a popularity contest for CEOs should alarm more people than it does.

[@daaave_]

You would NOT catch me waiting an hour at a Starbucks at that point ill just suffer without the caffeine

[@buddypvaz124]

Was he also responsible for the higher body count at Chipotle? I remember when customers who ate there were dying like flies all across the country. Starbucks never managed to kill anywhere near that many of its customers with tainted food. Jack in the box did though. Longstanding record until Chipotle pulled ahead. I wouldn't eat at any fast-food joint and probably not at the majority of restaurants, so I don't keep up with the CEO body count.

[@Nickcaged]

Trash recognizes Trash.

[@MacyMorningBrew]

i felt like charles barkley 0:01

[@moneer6268]

Why Brian looks like a copy of Trudeau

[@Pier_Py]

The storytelling was great. Very informative and insightful

[@osamataha336]

The asian girl got that omg voice

[@Friday4]

I love how you guys make your report entertaining and engaging Thanks Morning Brew!

[@zumabbar]

9:33 would've been interesting to explain his post more clearly and connect it to the three key points of the video

[@tony232cool]

chipotle and starbucks are too vastly different products, chipotle burritos are simple to assemble while starbucks drinks are complicated. The new ceo has no chance, no ceo has a chance starbucks has lost its way. First thing they should do is get rid of apps. you want a coffee you go to the store and pay in person.

[@impyrobot]

Yeah you wouldn't make a good CEO

[@tony232cool]

@@impyrobot you probable never had a coffee at starbucks recently.

[@Saliferous]

no. The problem is that Starbucks seems to want to no longer provide a 3rd space.

[@somersby64]

This is an excellent deep dive on this subject, thanks a ton for taking the time to make this and explain this to us :) Curious to see how Starbucks will evolve after this transition

[@markmclaughlin2690]

Starbucks needs to integrate their ordering platform, streamline store ops, their menu and recipes are too complicated. Their customer based is also an issue, they want premium but at a fast food pace. You can make one overly complicated beverage but making hundreds of them requires a factory mind set. The stores must the set up to produce their product at a higher fast pace. The relations between Leadership and the store teams went south under his leadership at Taco Bell.

[@Invincibletro]

Of course Karen received her coffee before everyone else.

[@thesuzyday]

Arguably 10 minutes is fast. If you waited in line and then for coffee that would make sense, but in this case it was a mobile order so it would have been placed on the way so 10 minutes is a very short commute. But tbh I hate the order ahead program.

[@zumabbar]

1st step? Reinvent the imperial measurement system so an oz will in actual weigh a lot less than it is now

[@user-ql6td9iz5r]

Take the money and run...

[@TheSkypeConverser]

Every day I see Starbucks plastic cups littered across our "protected" California beaches. I reached out to their (Starbucks) customer relations team, and I was not satisfied with their response. I feel like it is a public nuisance and they have a responsibility to clean up their litter.

[@TheSkypeConverser]

a 10 minute wait for your overpriced coffee is not high on my list of concerns

[@Kevft_]

Great job guys. I think the production could be more soft in the music tones when editing. Congratulations

[@thundercat6963]

Someone expensed their halloween costume

[@jagjotbehbal742]

tbh, they just bought $115 million worth mascot.

[@Felix-no7nx]

3:12 who the F waits over an hour for overpriced coffee?

[@kinghenry3693]

Sheep

[@Felix-no7nx]

@@kinghenry3693 cow

[@SCJO24]

good riddance starbucks

[@winterbird4069]

great video! i think if you are able to turn up the brightness / exposure, and clean the audio a bit more, it would be even higher quality! thanks!

[@IeremiaAnae-rj4pj]

The public space was filled up when buying coffee at Starbucks

[@stoopler]

So do we just give a little, you know, to get them to fill the cup to the top?

[@Shredderbox]

I love the game of make believe that CEOs have it hard somehow. They literally do nothing, while their frontline employees undertake all the risk and perform all the labor.

[@johnathanarcher6999]

Literally is quite a stretch there

[@ian562ADF52E]

Dude's advice is serve less food, advertise harder, and crush the union. Defo worth $113m and not just a self-fulfilling machine designed to keep the people at top ultra rich. /s

[@mack-uv6gn]

Automating restaurants? Less jobs and less consumption 🤦🏻‍♂️

[@jakubekch.3621]

Less jobs, yes But if you think people will avoid a store bc the rude barista with pierced nose is gone I'm sorry to break your bubble

[@pranshuanand4560]

Buddy you need to come out from under the caves if you think automation/invention is gonna stop just to save jobs. New jobs are created as a result of this

[@davidrobertson9174]

​@jakubekch.3621 from what I have heard about Howard and how he initially set up Starbucks, it was all about the "experience" of watching your coffee made. That trend is clearly over and people just want their coffee. Automation clearly the way forward. I notice in the UK Starbucks are using more self serve machines in other stores like Costa has done remarkably well for years...

[@MYLES221]

Both Starbucks and chipotle get mogged by local places 8/10 times

[@googlymoogley]

Pricing needs to come down so that infrequent customers aren't excluded from app-focused deals

[@samcarmant7042]

Great vid! I loved the basketball references 👏🏿

[@ayesha625]

Starbucks even admitted the global boycott has affected their earnings so keep boycotting!!

[@Wu-Dumpin]

Lol what a 🤡

[@Ash_W04]

Did you completely ignore the part where it’s misinformation?

[@sabins365]

The coffee taste horrible and you pay $5-10 for low quality. That's why they are suffering

[@rayeemon]

The girl who sat down after the coffee is a really good host

[@CarlosOrtiz-rc9df]

Expect for your cold coffee have more ice and your cup not being top off

[@Mike_Genisys]

Bought a profitec espresso machine after SB couldn't get two things right price and ridiculous wait times. They converted a regular customer to, I'm at the airport and don't have a choice customer.

[@alexkohr]

Chipotle price increases and decreased quality made me a Qdoba lover. I never go to Chipotle anymore and don't plan to anytime soon

[@gilcruz1479]

not complicated...lower prices. We dont mind waiting 10-15 for a mobile order if its a freakin 5 dollar latte

[@mahaveer2407]

macy is the coolest person on the internet

[@seowlingwee4693]

All the earnings go to the CEO

[@seananderson9598]

all i hear here is that niccol handed overs diamond of a company, CMG, to the new ceo. good luck to him at starbucks and good video

[@zimfan101]

Congratulations to the guy who made Taco Bell look like industrialized kitchens and turned a $2 burrito into a $5 burrito!! He didn't do anything to the quality of the food but made cheap eats unaffordable. Great job LeBron!!!

[@orlandocastillo6862]

He can’t raise the stock while making the customers happy

[@markmclaughlin2690]

Niccol failed at TB they launched the huge win that was called Breakfast. Such a huge win for Taco Bell ( hope you sense my sarcasm). He will go in and immediately begin tracking metrics that will drive the store teams crazy. Slash labor and portions driving down guest satisfaction

[@casterporter1662]

Thats literally not how you pronounce Laxman.

[@JimRohn-u8c]

I sure as fuck hope he cant lol Also yes, the price increases have stopped me from going to shitty Chipotle.

[@JimRohn-u8c]

@@TwisterTornado exactly and people are willing to pay through the nose for it!

[@tinytroll161]

Ten minutes is actually pretty fast

[@sairadha674]

Niccoll better take notes

[@tpearl109]

The brewed coffee tastes terrible.

[@dt8101]

Starbucks should sell its China business to Chinese investors and operate it as a license model, the same model McDonald's and KFC uses in China. Chinese are getting used to RMB10 coffees from Luckin Coffee and many other local competitors. The 3rd Space Starbucks offers is also challenged by tea based beverage chain. Overall, tea based drinks are getting more popular in China. Many prime location Starbucks leases saw significant traffic drop. Starbucks needs to cut back store spaces and close unprofitable stores in China.

[@nikkocozmoz]

Have you ever noticed Chipotle authorized 6 price increases since 2021? Yes I did. Okk... but has that really stopped you from going there? Yes it has.

[@janet-lj9kj]

I liked this video but I think it looks like something high schoolers would put together in terms of visuals. It’s obvious that the speakers are reading off what’s beyond the camera the entire time.

[@Patty100ish]

Chipotle honey moon is over. Customers are waking up. Your message here is a little tone deaf. That’s why Mr. CEO jumped ship despite getting a nice pay day. That was a blessing in disguise for him the timing of it

[@Halfmoonbaee]

Chipotle tasted better before/during the e.coli/salmonella outbreak.

[@feedthesnake3394]

starbucks about to sell burrito bowls.

[@terrycoontz]

couldn't be price could it lol

[@SANJ0288]

Chipotle will continue to do well without the. Sellout ceo

[@jrmills2468]

This felt more like an onion article

[@KittySnicker]

Not really feeling the news anchor format

[@remixisthis]

Starbucks coffee tastes like garbage now. I make better coffee with my Nespresso pods

[@Mirtual]

That israel argument is pretty funny not just because they've never given them money but also Starbucks doesn't operate there, they tried doing it over 20 years ago and completely failed

[@kingthame]

Herrine is not happy at all.

[@the_nerd_domain]

The one piece 😮😮😮😮

[@travisvaught]

They just want to see him bust unions and raise profits at any cost. Makes investors happy I guess, but not so sure that workers or the people will love his time there.

[@sephnight8170]

Starbucks since covid was terrible low understaff management and hiring people Under GenZ calls out a lot cause of there struggles of minimum wage and prosper they can't afford purpose anymore because of inflation and HR doing review is that you only see is 16 yr and 18 yr that aren't trained enough and sometimes they wanted is to care there mental health and just callout or quit (effecting there image) these youngest are facing PTSD for low Training and putting them on work Real world.

[@Richard-ek8tp]

Why do you compare chipotles revenue growth numbers to Starbucks China numbers? That’s a completely different market

[@showcaseSampa]

The local mom and pop coffee shops will eat them alive. Anyone can get a clue on how to emulate their decor. Plenty coop coffee growers South of Border. Workers make the difference, not some overpaid CEO . They are failing overseas. Their Brazilian operation is going insolvent.

[@TKO25188]

People low on cash, so star CEO hire be waste of SB’s cash.

[@IndependentLogos]

This video feels like a High School project

[@charliesullivan4304]

I think that's actually some of the charm of these productions. It's refreshing after so much is so overproduced.

[@miguelTriesComputing]

@@charliesullivan4304 exactly! everything on youtube nowadays is Lionsgate type level production for something that was supposed to be a platform where you would post high school projects on. So seeing this from cold brew is awesome.

[@IeremiaAnae-rj4pj]

roll out into the line outside and serve coffee much

[@mynameisjeff.]

Jesus this was a terrible video. He was hired to be a union buster! You call this journalism?

[@Tkcrypto1]

I don't go thr Chipotle or Starbucks. 🤔

[@dh7314]

Terrible coffee, terrible company.

[@seowlingwee4693]

A waste of money!!

[@GarageGamere]

1. Starbucks is failing in USA to third party vendors and small businesses. 2. Starbucks refuses to increase quantity in their drinks to compete with large coffee. Ie triente and quadrente sizes like Dutch Bros. 3. The quality of drinks has been slowly worsening due to time constraints and large turnovers at their Cafes and some baristas do not get to stay. 4 Their hiring process is awful I've had friends get 'hired' but get no callbacks for their first day. 5. Starbucks Locations are generic and often in inconvenient places. On a hill or inside a parking lot and their curbs make it hard to get to or deliver. 6. Hopefully Nicholas fixes these issues