Starbucks at Jefferies Global Consumer Conference

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“Innovating with food into the afternoon and evening where we know in those dayparts food is a more meaningful driver of that customer’s decision to come in the store than it is in the morning where it’s primarily a beverage focused transaction”

“the early – very early results we’re seeing in our new markets with La Boulange gives us confidence in our ability to continue driving that attach rate higher and driving the sales mix in food higher.

“a Time Square store that we remodeled about a year, year and a half ago. It is the number one volume store in the U.S. for us at about $6 million AUV”

“Our second highest volume store is the Pike Place store, in Seattle, 400 square feet, a limited offering, there is no food offered in the store. It’s really the original of the concept only with beverages in the store, and yet this is a $5.5 million AUV that continues to comp very strongly, profitability four wall cash profit in the store is in the upper 30s.”

“Third highest volume store in the U.S. is traveling all the way down to Houston, where we have this drive-thru stores, it’s a beautiful store. It’s an extremely high volume store, and it’s reflective of our opportunity as we go forward about adding drive-thrus increasingly into the mix. About 40% of our U.S. portfolio today is in drive-thru stores.”

“Going forward, our growth in new stores in the U.S. will be about 60% drive-thrus or greater as we continue to recognize in ongoing opportunity to get better how we operationalize to the drive-thru, and then also how that opens up new real estate opportunities for us. By the way we are increasingly looking at drive-thrus in selected markets around the world where we are highly under penetrated, but recognize we have a significant opportunity.”

“In the last several years in particular, really since the challenges of 2008 and 2009 we had significantly deepened our capabilities around real estate site selection, around understanding trade areas, around store design, around innovating, around the concept. We’ve become much better operators of stores within the stores about managing waste and managing and deploying labor. We have become much more selective about how to size the store for a particular trade area. We understand cannibalization than we ever have before and that has opened up all kinds of innovative dept of opportunities for us including a ski-up store”

“Now, tea is the second most consumed beverage in the world, secondly to water.”

“The second strategy and leg of growth for tea for us is to now deepen our key presence within the Starbucks stores to really use tea as a driver of another customer occasion, another customer visit. It’s very complementary consumption time to coffee. Coffee to the American consumer tends to be busy and rapid and skewed toward the morning. Tea is a little more relaxing and Zen like and skews to the afternoon and evening and weekends.”

“We have actually been in China since the late 90’s, but we reached something of a tipping point I would say, three or four years ago where all age these classes of stores really significantly elevated in terms of comp growth and volumes through those stores. I think that was about reaching an awareness in that marketplace.”

“Customers don’t make a trade largely between their at home consumption and consumption on the go in a coffee house”