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Starbucks' Billion-Dollar Delivery Business | Fast Five Shorts · Omni Talk Retail

• 0:00
  Coffee
• 0:00
  delivery
• 0:00
  is
• 0:01
  now
• 0:01
  a
• 0:01
  $1
• 0:01
  billion
• 0:02
  business
• 0:03
  for
• 0:03
  Starbucks.
• 0:04
  Who
• 0:04
  knew?
• 0:04
  According
• 0:05
  to
• 0:05
  CNBC,
• 0:06
  Starbucks
• 0:06
  said
• 0:07
  last
• 0:08
  week
• 0:08
  that
• 0:08
  its
• 0:08
  annual
• 0:09
  delivery
• 0:09
  sales
• 0:09
  crossed
• 0:10
  the
• 0:10
  Milestone
• 0:11
  in
• 0:11
  fiscal
• 0:11
  2025,
• 0:12
  which
• 0:13
  ended
• 0:13
  on
• 0:13
  Sept.
• 0:14
  30.
• 0:14
  In
• 0:14
  the
• 0:14
  company's
• 0:15
  fiscal
• 0:15
  fourth
• 0:16
  quarter,
• 0:16
  delivery
• 0:17
  sales
• 0:17
  climbed
• 0:18
  in
• 0:18
  almost
• 0:19
  30%
• 0:20
  compared
• 0:21
  with
• 0:21
  the
• 0:21
  year
• 0:21
  ago,
• 0:21
  period.
• 0:22
  Executives
• 0:22
  said
• 0:23
  30%
• 0:23
  and
• 0:23
  deliveries
• 0:24
  growing
• 0:24
  30%
• 0:25
  at
• 0:25
  Starbucks.
• 0:26
  And
• 0:26
  I'm
• 0:27
  curious,
• 0:27
  does
• 0:27
  the
• 0:27
  fact
• 0:27
  that
• 0:28
  Starbucks
• 0:28
  now
• 0:28
  sells
• 0:29
  $1
• 0:29
  billion
• 0:30
  of
• 0:30
  coffee
• 0:31
  a
• 0:31
  year
• 0:31
  via
• 0:32
  delivery
• 0:33
  change
• 0:33
  your
• 0:33
  thinking
• 0:34
  on
• 0:34
  Brian
• 0:34
  Nichols
• 0:35
  turnaround
• 0:35
  strategy?
• 0:36
  No.
• 0:37
  I
• 0:37
  still
• 0:37
  think
• 0:37
  if
• 0:38
  anything,
• 0:38
  this
• 0:38
  tells
• 0:39
  you
• 0:39
  you
• 0:39
  need
• 0:39
  to
• 0:39
  automate
• 0:40
  the
• 0:40
  hell
• 0:40
  out
• 0:40
  of
• 0:41
  your
• 0:41
  business.
• 0:41
  You
• 0:42
  need
• 0:43
  to
• 0:43
  figure,
• 0:43
  you
• 0:44
  need
• 0:44
  to
• 0:45
  like
• 0:45
  shift
• 0:45
  gears
• 0:46
  from
• 0:46
  this
• 0:46
  like
• 0:47
  coffee
• 0:47
  shop
• 0:47
  experience
• 0:48
  and
• 0:48
  look
• 0:48
  at
• 0:49
  the
• 0:49
  potential
• 0:49
  growth
• 0:49
  on
• 0:50
  your
• 0:50
  hands
• 0:50
  here.
• 0:51
  Bring
• 0:51
  back
• 0:51
  the
• 0:52
  pickup
• 0:52
  only.
• 0:52
  Stores
• 0:53
  don't
• 0:53
  even
• 0:53
  put
• 0:53
  a
• 0:53
  storefront
• 0:54
  in
• 0:54
  front
• 0:54
  of
• 0:54
  them.
• 0:54
  They
• 0:54
  could
• 0:55
  just
• 0:55
  be
• 0:55
  ghost
• 0:55
  kitchen
• 0:56
  coffee
• 0:56
  making
• 0:57
  operations
• 0:58
  where
• 0:58
  everything's
• 0:59
  automated
• 1:00
  so
• 1:00
  that
• 1:00
  you
• 1:00
  can
• 1:01
  get
• 1:01
  things
• 1:01
  to
• 1:02
  customers
• 1:02
  quickly.
• 1:04
  And
• 1:04
  that's
• 1:05
  because
• 1:05
  they
• 1:05
  know
• 1:06
  they're
• 1:06
  going
• 1:06
  to
• 1:06
  get
• 1:06
  exactly
• 1:07
  what
• 1:07
  they
• 1:07
  want
• 1:08
  every
• 1:08
  single
• 1:09
  time
• 1:09
  they
• 1:09
  order
• 1:09
  Starbucks,
• 1:10
  not
• 1:10
  just
• 1:11
  for
• 1:11
  coffee,
• 1:11
  but
• 1:11
  also
• 1:12
  food.
• 1:12
  They
• 1:12
  said
• 1:13
  40%
• 1:13
  of
• 1:13
  these
• 1:13
  orders
• 1:14
  are
• 1:14
  including
• 1:15
  food
• 1:15
  because
• 1:15
  you
• 1:16
  have
• 1:16
  to
• 1:16
  help
• 1:16
  people
• 1:16
  justify
• 1:17
  those
• 1:17
  delivery
• 1:18
  costs.
• 1:18
  And
• 1:19
  I
• 1:19
  think
• 1:20
  what
• 1:20
  this
• 1:20
  is
• 1:20
  showing
• 1:20
  me
• 1:21
  is
• 1:21
  that
• 1:21
  it
• 1:21
  already
• 1:22
  is
• 1:22
  being
• 1:22
  delivered
• 1:23
  accurately
• 1:24
  and
• 1:25
  in
• 1:25
  good
• 1:25
  condition.
• 1:26
  Like
• 1:26
  the
• 1:26
  coffee
• 1:26
  still
• 1:27
  hot.
• 1:27
  So
• 1:28
  how
• 1:28
  do
• 1:28
  you
• 1:28
  keep
• 1:28
  that
• 1:29
  engine
• 1:29
  going?
• 1:30
  And
• 1:30
  that
• 1:31
  to
• 1:31
  me
• 1:31
  is
• 1:31
  what
• 1:31
  I
• 1:32
  would
• 1:32
  be
• 1:32
  focused
• 1:32
  on
• 1:33
  if
• 1:33
  I
• 1:33
  was
• 1:33
  Brian
• 1:33
  Nichol
• 1:34
  and
• 1:34
  team
• 1:34
  at
• 1:34
  Star
• 1:35
  at
• 1:35
  Starbucks.
• 1:35
  But
• 1:36
  what,
• 1:36
  what
• 1:37
  about
• 1:37
  you?
• 1:37
  I
• 1:37
  mean,
• 1:37
  does
• 1:37
  this
• 1:38
  change?
• 1:38
  You're,
• 1:38
  you're
• 1:39
  pro
• 1:39
  coffee
• 1:39
  shop
• 1:40
  where.
• 1:40
  What
• 1:40
  do
• 1:40
  you
• 1:40
  think
• 1:41
  this
• 1:41
  has?
• 1:41
  What
• 1:42
  impact
• 1:42
  do
• 1:42
  you
• 1:42
  think
• 1:42
  this
• 1:42
  has?
• 1:43
  I
• 1:43
  am,
• 1:43
  but
• 1:44
  I
• 1:44
  am,
• 1:45
  but
• 1:45
  I
• 1:45
  think
• 1:45
  I'm
• 1:45
  changing.
• 1:46
  I'm
• 1:46
  coming
• 1:46
  to
• 1:46
  come
• 1:46
  into
• 1:46
  your
• 1:47
  side
• 1:47
  a
• 1:47
  little
• 1:47
  bit
• 1:47
  more.
• 1:47
  I
• 1:48
  think
• 1:48
  there's
• 1:48
  some
• 1:48
  nuance
• 1:48
  to
• 1:49
  the
• 1:49
  argument
• 1:49
  though.
• 1:49
  But
• 1:49
  like
• 1:50
  I
• 1:50
  think
• 1:50
  this
• 1:50
  is
• 1:50
  the
• 1:51
  bullet
• 1:51
  in
• 1:51
  the
• 1:51
  chamber
• 1:51
  for
• 1:51
  your
• 1:52
  argument,
• 1:52
  for
• 1:52
  what
• 1:52
  you've
• 1:53
  long
• 1:54
  espoused
• 1:54
  on
• 1:55
  this
• 1:55
  show.
• 1:56
  You
• 1:56
  know,
• 1:57
  because
• 1:57
  with
• 1:57
  30%,
• 1:58
  that's
• 1:58
  just,
• 1:59
  that
• 1:59
  just
• 1:59
  tells
• 1:59
  me
• 2:00
  30%
• 2:00
  growth
• 2:01
  rate
• 2:01
  and
• 2:01
  delivering
• 2:01
  a
• 2:01
  billion
• 2:01
  dollar
• 2:02
  business.
• 2:02
  That
• 2:02
  just
• 2:02
  tells
• 2:02
  me,
• 2:03
  like
• 2:03
  you
• 2:03
  said,
• 2:03
  there's
• 2:03
  just
• 2:03
  a
• 2:03
  hell
• 2:04
  of
• 2:04
  a
• 2:04
  lot
• 2:04
  of
• 2:04
  people
• 2:04
  that
• 2:04
  want
• 2:04
  their
• 2:05
  coffee.
• 2:05
  They
• 2:05
  don't
• 2:06
  want
• 2:06
  the
• 2:06
  Starbucks
• 2:07
  experience.
• 2:07
  It's
• 2:07
  absolutely
• 2:07
  meaningless
• 2:08
  to
• 2:08
  them.
• 2:08
  They
• 2:09
  just
• 2:09
  want
• 2:09
  the
• 2:09
  addiction.
• 2:10
  They
• 2:10
  just
• 2:10
  want
• 2:10
  the
• 2:10
  product
• 2:10
  that
• 2:11
  they
• 2:11
  love.
• 2:12
  So,
• 2:12
  you
• 2:12
  know,
• 2:12
  I
• 2:13
  think
• 2:13
  you're
• 2:13
  right.
• 2:13
  You
• 2:13
  got
• 2:13
  to
• 2:13
  go
• 2:14
  the
• 2:14
  way
• 2:14
  of
• 2:14
  like
• 2:14
  dark
• 2:15
  cafes
• 2:16
  and
• 2:16
  figure
• 2:16
  out
• 2:16
  a
• 2:16
  way
• 2:17
  to
• 2:17
  push
• 2:17
  orders
• 2:17
  through
• 2:17
  them.
• 2:18
  The
• 2:18
  other
• 2:18
  point
• 2:18
  I
• 2:18
  hadn't
• 2:19
  thought
• 2:19
  about
• 2:19
  until
• 2:19
  you
• 2:19
  just
• 2:19
  mentioned
• 2:20
  it.
• 2:20
  Too
• 2:20
  is
• 2:20
  like,
• 2:21
  yeah,
• 2:21
  you
• 2:21
  tried
• 2:21
  the
• 2:21
  mobile
• 2:22
  pickup
• 2:22
  only
• 2:22
  stores
• 2:23
  and
• 2:23
  things
• 2:23
  like
• 2:23
  that.
• 2:23
  But
• 2:23
  like,
• 2:24
  you
• 2:24
  didn't
• 2:24
  market
• 2:24
  them.
• 2:25
  Like,
• 2:25
  you
• 2:26
  know,
• 2:26
  like,
• 2:26
  how
• 2:26
  did
• 2:26
  you,
• 2:27
  how
• 2:27
  did
• 2:27
  you
• 2:27
  bring
• 2:27
  those
• 2:27
  to
• 2:27
  market?
• 2:28
  How
• 2:28
  did
• 2:28
  you
• 2:28
  tell
• 2:28
  people
• 2:28
  about
• 2:29
  them?
• 2:29
  Because
• 2:29
  like,
• 2:29
  for
• 2:30
  me,
• 2:31
  given
• 2:32
  the
• 2:32
  fact
• 2:32
  that
• 2:32
  now
• 2:32
  when
• 2:32
  I
• 2:33
  go
• 2:33
  to
• 2:33
  the,
• 2:33
  when
• 2:33
  I
• 2:33
  go
• 2:33
  to
• 2:34
  a
• 2:34
  Starbucks,
• 2:35
  I'm
• 2:35
  not
• 2:35
  only
• 2:35
  waiting
• 2:36
  in
• 2:36
  line
• 2:36
  for
• 2:36
  mobile
• 2:37
  pickup
• 2:37
  orders,
• 2:37
  there's
• 2:38
  people
• 2:38
  doing
• 2:39
  delivery
• 2:39
  orders
• 2:39
  too
• 2:40
  that
• 2:40
  are
• 2:40
  waiting
• 2:40
  to
• 2:40
  pick
• 2:40
  up
• 2:41
  their
• 2:41
  orders
• 2:41
  and
• 2:41
  it's
• 2:41
  taking
• 2:41
  a
• 2:42
  lot
• 2:42
  of
• 2:42
  time.
• 2:42
  And
• 2:43
  so
• 2:43
  I'm
• 2:43
  standing
• 2:43
  in
• 2:43
  line
• 2:44
  for
• 2:44
  a
• 2:44
  really
• 2:44
  long
• 2:44
  time.
• 2:45
  And
• 2:45
  so,
• 2:45
  so
• 2:45
  with
• 2:46
  all
• 2:46
  that
• 2:46
  said,
• 2:46
  like,
• 2:47
  tell
• 2:47
  me
• 2:47
  that
• 2:47
  there's
• 2:47
  a
• 2:47
  location
• 2:48
  where
• 2:48
  I
• 2:48
  can
• 2:49
  just
• 2:49
  go
• 2:49
  pick
• 2:49
  it
• 2:49
  up
• 2:50
  and
• 2:50
  hopefully
• 2:50
  it's
• 2:51
  faster.
• 2:51
  Yeah,
• 2:52
  I'm
• 2:52
  all
• 2:52
  in.
• 2:53
  But
• 2:53
  with
• 2:53
  that
• 2:53
  said,
• 2:54
  I
• 2:54
  think
• 2:55
  both
• 2:55
  ideas
• 2:56
  can
• 2:56
  be
• 2:56
  true
• 2:56
  at
• 2:57
  the
• 2:57
  same
• 2:57
  time.
• 2:58
  And
• 2:58
  that's
• 2:58
  what
• 2:58
  Omni
• 2:59
  is
• 2:59
  all
• 2:59
  about
• 3:00
  because
• 3:00
  I'm
• 3:00
  still
• 3:01
  going
• 3:01
  into
• 3:01
  Starbucks
• 3:02
  with
• 3:02
  large
• 3:02
  queues
• 3:03
  of
• 3:03
  pickup
• 3:04
  orders,
• 3:04
  but
• 3:05
  the
• 3:05
  stores
• 3:05
  are
• 3:05
  also
• 3:05
  still
• 3:06
  full.
• 3:07
  So
• 3:07
  I
• 3:07
  think
• 3:07
  that's
• 3:07
  a
• 3:08
  dynamic
• 3:08
  here
• 3:08
  at
• 3:08
  Place.
• 3:09
  So
• 3:09
  I
• 3:09
  think
• 3:09
  you
• 3:09
  have
• 3:10
  to
• 3:10
  improve
• 3:10
  both.
• 3:10
  But
• 3:11
  what
• 3:11
  this
• 3:11
  tells
• 3:11
  me
• 3:12
  is
• 3:12
  hopefully
• 3:13
  he's
• 3:13
  got
• 3:13
  the
• 3:13
  punchline
• 3:14
  to
• 3:14
  the
• 3:14
  joke
• 3:14
  here
• 3:14
  and
• 3:14
  this
• 3:15
  is
• 3:15
  a
• 3:15
  really
• 3:15
  telling
• 3:15
  statistic
• 3:16
  on
• 3:16
  that.
• 3:17
  And
• 3:17
  my
• 3:17
  hunch
• 3:17
  is
• 3:17
  that
• 3:18
  he
• 3:18
  does.
• 3:18
  But
• 3:19
  the
• 3:19
  other
• 3:19
  point
• 3:19
  of
• 3:19
  this
• 3:20
  is
• 3:20
  I
• 3:20
  think
• 3:20
  it's
• 3:20
  going
• 3:21
  to
• 3:21
  take
• 3:21
  more
• 3:21
  time
• 3:22
  to
• 3:22
  figure
• 3:23
  this
• 3:23
  out
• 3:23
  and
• 3:24
  more
• 3:24
  investment
• 3:25
  to
• 3:25
  figure
• 3:25
  it
• 3:25
  out
• 3:25
  than
• 3:26
  just
• 3:26
  leaning
• 3:27
  in
• 3:27
  on
• 3:27
  the
• 3:27
  stores.
• 3:28
  On
• 3:28
  the
• 3:28
  stores,
• 3:29
  the
• 3:29
  operations,
• 3:30
  you
• 3:30
  know,
• 3:30
  keeping
• 3:30
  the
• 3:31
  employees
• 3:31
  happy,
• 3:31
  which
• 3:31
  I
• 3:32
  think
• 3:32
  is
• 3:32
  the
• 3:32
  right
• 3:32
  starting
• 3:33
  point.
• 3:33
  But
• 3:34
  then
• 3:34
  you've
• 3:34
  got
• 3:34
  to
• 3:34
  figure
• 3:35
  out
• 3:35
  how
• 3:35
  to
• 3:35
  supply
• 3:35
  the
• 3:36
  infrastructure
• 3:36
  to
• 3:36
  make
• 3:36
  this
• 3:37
  happen
• 3:37
  quicker.
• 3:37
  But
• 3:38
  you
• 3:38
  take
• 3:38
  the
• 3:38
  last
• 3:38
  word
• 3:38
  here.
• 3:39
  What
• 3:39
  do
• 3:39
  you
• 3:39
  think?
• 3:40
  Yeah,
• 3:40
  I,
• 3:40
  I
• 3:40
  mean,
• 3:41
  I
• 3:41
  don't
• 3:41
  have
• 3:41
  much
• 3:41
  to
• 3:41
  add.
• 3:42
  I
• 3:42
  think
• 3:42
  they,
• 3:43
  they've
• 3:43
  got
• 3:43
  to
• 3:43
  figure
• 3:44
  out
• 3:44
  both
• 3:45
  operations
• 3:45
  if
• 3:46
  they
• 3:46
  are
• 3:46
  going
• 3:46
  to
• 3:46
  do
• 3:46
  it
• 3:46
  that
• 3:47
  way.
• 3:47
  But
• 3:47
  you
• 3:47
  have
• 3:48
  to
• 3:48
  be
• 3:48
  pressing
• 3:48
  the
• 3:48
  gas
• 3:49
  on
• 3:49
  the
• 3:50
  automation
• 3:51
  and
• 3:51
  on
• 3:52
  this,
• 3:52
  keeping
• 3:52
  this
• 3:53
  delivery
• 3:53
  top
• 3:54
  of
• 3:54
  mind
• 3:54
  for
• 3:54
  people.
• 3:54
  Otherwise
• 3:55
  people
• 3:56
  are
• 3:56
  going
• 3:56
  to
• 3:56
  sneak
• 3:57
  up
• 3:57
  and,
• 3:57
  and
• 3:57
  catch
• 3:57
  up
• 3:57
  to
• 3:58
  you
• 3:58
  on
• 3:58
  it
• 3:58
  and,
• 3:59
  and
• 3:59
  that
• 3:59
  profit
• 3:59
  could
• 4:00
  slip
• 4:00
  quickly.
• 4:02
  So.
• 4:02
  So
• 4:02
  yes.
• 4:03
  Brian.
• 4:03
  Brian,
• 4:04
  get
• 4:05
  your
• 4:05
  coffee
• 4:05
  ghost
• 4:06
  kitchens
• 4:06
  up
• 4:06
  and
• 4:07
  running.
• 4:07
  We're
• 4:07
  ready.
• 4:08
  We're
• 4:08
  ready
• 4:08
  for
• 4:08
  them.
• 4:09
  Yeah,
• 4:09
  we
• 4:09
  are.