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Starbucks’ Bet On The Third Place | Fast Five Shorts · Omni Talk Retail

• 0:00
  Starbucks
• 0:00
  is
• 0:00
  doubling
• 0:01
  down
• 0:01
  on
• 0:01
  its
• 0:01
  back
• 0:01
  to
• 0:02
  Starbucks
• 0:02
  turnaround
• 0:03
  with
• 0:03
  two
• 0:03
  significant
• 0:04
  moves
• 0:04
  this
• 0:04
  week.
• 0:05
  The
• 0:05
  coffee
• 0:05
  chain
• 0:06
  unveiled
• 0:06
  its
• 0:06
  new
• 0:06
  uplifted
• 0:07
  store
• 0:07
  designs
• 0:08
  in
• 0:08
  Chicago
• 0:08
  and
• 0:09
  separately
• 0:09
  announced
• 0:09
  a
• 0:10
  new
• 0:10
  performance
• 0:10
  bonus
• 0:11
  program
• 0:11
  and
• 0:11
  expanded
• 0:12
  tipping
• 0:12
  options
• 0:13
  that
• 0:13
  could
• 0:13
  put
• 0:13
  up
• 0:14
  to
• 0:14
  1,200
• 0:15
  more
• 0:15
  dollars
• 0:16
  per
• 0:16
  year
• 0:16
  into
• 0:16
  Barista's
• 0:17
  pockets,
• 0:18
  according
• 0:18
  to
• 0:19
  the
• 0:19
  Chicago
• 0:19
  Tribune.
• 0:20
  On
• 0:20
  the
• 0:20
  store
• 0:20
  design
• 0:21
  front,
• 0:21
  Starbucks
• 0:21
  unveiled
• 0:22
  one
• 0:22
  of
• 0:22
  its
• 0:22
  first
• 0:22
  Chicago
• 0:23
  area
• 0:23
  uplifted
• 0:24
  locations
• 0:24
  on
• 0:25
  Cicero
• 0:25
  Avenue
• 0:26
  in
• 0:26
  the
• 0:26
  old
• 0:26
  Irving
• 0:27
  park
• 0:27
  neighborhood.
• 0:28
  And
• 0:28
  and
• 0:28
  it
• 0:28
  features,
• 0:29
  just
• 0:29
  wait
• 0:29
  for
• 0:30
  it
• 0:30
  folks,
• 0:30
  leather
• 0:30
  couches,
• 0:31
  cushy
• 0:32
  chairs,
• 0:32
  throw
• 0:33
  rugs,
• 0:33
  drapes.
• 0:34
  I
• 0:34
  see
• 0:34
  Jen
• 0:34
  smiling
• 0:34
  in
• 0:35
  the
• 0:35
  background,
• 0:35
  neighborhood
• 0:36
  specific
• 0:36
  art
• 0:37
  and
• 0:37
  a
• 0:37
  decidedly
• 0:38
  cozier
• 0:39
  feel.
• 0:39
  Well,
• 0:39
  it
• 0:39
  would
• 0:39
  have
• 0:39
  to
• 0:40
  if
• 0:40
  it
• 0:40
  has
• 0:40
  couches
• 0:41
  and
• 0:41
  cushy,
• 0:42
  cushy
• 0:43
  chairs.
• 0:43
  On
• 0:43
  the
• 0:44
  barista
• 0:44
  compensation
• 0:45
  front,
• 0:45
  starting
• 0:45
  in
• 0:45
  July
• 0:46
  2026,
• 0:47
  Starbucks
• 0:47
  will
• 0:48
  introduce
• 0:48
  a
• 0:48
  new
• 0:48
  quarterly
• 0:49
  bonus
• 0:49
  program.
• 0:50
  Baristas
• 0:50
  and
• 0:51
  shift
• 0:51
  supervisors
• 0:52
  can
• 0:52
  earn
• 0:52
  up
• 0:52
  to
• 0:52
  $300
• 0:53
  per
• 0:53
  quarter
• 0:54
  or
• 0:54
  $1,200
• 0:55
  per
• 0:55
  year
• 0:55
  when
• 0:55
  their
• 0:56
  location
• 0:56
  meets
• 0:56
  or
• 0:56
  exceeds
• 0:57
  sales,
• 0:57
  operational
• 0:58
  and
• 0:58
  customer
• 0:58
  service
• 0:59
  targets.
• 1:00
  And
• 1:00
  Starbucks
• 1:01
  is
• 1:01
  also
• 1:01
  expanding
• 1:02
  tipping
• 1:02
  options
• 1:03
  so
• 1:03
  customers
• 1:04
  can
• 1:04
  tip
• 1:04
  via
• 1:04
  credit
• 1:05
  and
• 1:05
  debit
• 1:06
  card
• 1:06
  through
• 1:06
  mobile,
• 1:07
  order
• 1:07
  and
• 1:07
  pay
• 1:07
  and
• 1:08
  scan
• 1:08
  and
• 1:08
  pay
• 1:08
  at
• 1:09
  the
• 1:09
  register.
• 1:09
  Previously,
• 1:10
  tips
• 1:10
  were
• 1:11
  only
• 1:11
  available
• 1:11
  on
• 1:12
  in
• 1:12
  store
• 1:12
  cash
• 1:12
  and
• 1:13
  card
• 1:13
  transactions
• 1:14
  and
• 1:14
  drive
• 1:14
  thru.
• 1:15
  I
• 1:15
  did
• 1:15
  not
• 1:15
  know
• 1:15
  that
• 1:16
  all
• 1:16
  us
• 1:16
  store
• 1:17
  employees
• 1:17
  will
• 1:17
  also
• 1:18
  move
• 1:18
  to
• 1:18
  weekly
• 1:19
  pay
• 1:19
  which
• 1:19
  is
• 1:20
  important
• 1:20
  to
• 1:21
  starting
• 1:21
  in
• 1:21
  August.
• 1:22
  John,
• 1:22
  on
• 1:22
  a
• 1:22
  scale
• 1:23
  of
• 1:23
  1
• 1:23
  to
• 1:23
  10,
• 1:24
  1
• 1:25
  to
• 1:25
  10,
• 1:26
  how
• 1:26
  confident
• 1:26
  are
• 1:27
  you
• 1:27
  that
• 1:27
  the
• 1:27
  Back
• 1:27
  to
• 1:28
  Starbucks
• 1:28
  plan
• 1:29
  is
• 1:29
  actually
• 1:29
  working
• 1:30
  as
• 1:30
  intended?
• 1:31
  So
• 1:32
  I
• 1:32
  would
• 1:32
  say
• 1:32
  if
• 1:33
  you're
• 1:33
  forcing
• 1:33
  me
• 1:33
  to
• 1:33
  scale
• 1:33
  once,
• 1:34
  I'm
• 1:34
  bullish.
• 1:34
  First
• 1:35
  of
• 1:35
  all,
• 1:35
  I
• 1:35
  would
• 1:35
  say
• 1:36
  okay,
• 1:37
  I'm
• 1:37
  bullish.
• 1:38
  So
• 1:38
  put
• 1:38
  bullish
• 1:39
  at
• 1:39
  maybe
• 1:39
  an
• 1:39
  8.
• 1:39
  I
• 1:40
  don't
• 1:40
  want
• 1:40
  to
• 1:40
  be
• 1:40
  overly
• 1:40
  confident
• 1:41
  and
• 1:41
  be
• 1:41
  completely
• 1:42
  wrong.
• 1:42
  But
• 1:43
  look,
• 1:43
  I
• 1:43
  love
• 1:44
  the,
• 1:45
  the
• 1:45
  moves
• 1:45
  that
• 1:45
  the
• 1:46
  company
• 1:46
  is
• 1:46
  announcing.
• 1:47
  First
• 1:47
  of
• 1:47
  all,
• 1:47
  just
• 1:48
  going
• 1:48
  back
• 1:48
  to
• 1:48
  kind
• 1:48
  of
• 1:48
  the
• 1:48
  comments
• 1:49
  about
• 1:49
  leadership
• 1:50
  generally,
• 1:50
  I
• 1:50
  think
• 1:51
  Brian
• 1:51
  Nicholl
• 1:53
  watching
• 1:53
  closely
• 1:54
  what
• 1:54
  they're
• 1:54
  doing
• 1:54
  on
• 1:55
  a
• 1:55
  daily
• 1:55
  basis
• 1:56
  at
• 1:57
  that
• 1:57
  brand,
• 1:57
  I
• 1:57
  love
• 1:57
  the
• 1:58
  kind
• 1:58
  of
• 1:58
  turnaround
• 1:58
  plan
• 1:58
  that
• 1:59
  they're
• 1:59
  putting
• 1:59
  in
• 1:59
  place.
• 2:00
  But
• 2:00
  some
• 2:00
  of
• 2:00
  these
• 2:01
  specific
• 2:01
  initiatives
• 2:02
  that
• 2:02
  we're
• 2:02
  talking
• 2:02
  about
• 2:02
  here
• 2:03
  I
• 2:03
  think
• 2:03
  are
• 2:03
  spot
• 2:04
  on.
• 2:05
  There's
• 2:06
  a
• 2:07
  saying
• 2:07
  or
• 2:07
  an
• 2:08
  aphorism
• 2:09
  that
• 2:09
  we
• 2:09
  talk
• 2:09
  about
• 2:10
  the
• 2:11
  customer
• 2:11
  experience
• 2:11
  is
• 2:12
  never
• 2:12
  going
• 2:12
  to
• 2:12
  exceed
• 2:13
  the
• 2:13
  employee
• 2:13
  experience.
• 2:14
  You
• 2:14
  know,
• 2:14
  I
• 2:14
  think
• 2:15
  that,
• 2:15
  you
• 2:15
  know,
• 2:15
  the,
• 2:15
  the
• 2:16
  best
• 2:16
  brands
• 2:16
  out
• 2:16
  there
• 2:16
  in
• 2:17
  restaurant
• 2:17
  companies
• 2:18
  like
• 2:18
  your
• 2:18
  Chick
• 2:18
  Fil
• 2:18
  A's
• 2:19
  and
• 2:19
  things
• 2:19
  like
• 2:19
  that
• 2:20
  are
• 2:20
  known
• 2:20
  for
• 2:20
  investing
• 2:21
  in
• 2:21
  their
• 2:21
  teams
• 2:22
  and
• 2:23
  doing
• 2:23
  moves
• 2:24
  like
• 2:24
  this.
• 2:24
  And
• 2:24
  I
• 2:25
  think
• 2:25
  that,
• 2:26
  I
• 2:26
  think,
• 2:26
  you
• 2:26
  know,
• 2:27
  it's
• 2:27
  going
• 2:27
  to
• 2:27
  pay
• 2:27
  dividends.
• 2:28
  You
• 2:28
  know,
• 2:28
  it'll
• 2:28
  Take
• 2:28
  some
• 2:28
  time.
• 2:29
  You
• 2:29
  know,
• 2:29
  these
• 2:29
  things,
• 2:30
  you
• 2:30
  know,
• 2:30
  don't
• 2:30
  happen
• 2:31
  overnight.
• 2:31
  And
• 2:31
  it
• 2:31
  doesn't
• 2:32
  change
• 2:32
  kind
• 2:32
  of
• 2:32
  behaviors
• 2:33
  necessarily
• 2:33
  overnight.
• 2:34
  But
• 2:34
  I
• 2:34
  think
• 2:34
  the
• 2:34
  direction
• 2:35
  it's
• 2:35
  going
• 2:35
  makes
• 2:36
  a
• 2:36
  ton
• 2:36
  of
• 2:36
  sense.
• 2:37
  I've
• 2:37
  seen,
• 2:38
  and
• 2:38
  actually
• 2:38
  we've
• 2:38
  helped
• 2:39
  companies
• 2:39
  implement
• 2:40
  very
• 2:40
  similar,
• 2:40
  like
• 2:42
  incentive
• 2:43
  programs.
• 2:44
  A
• 2:44
  lot
• 2:44
  of
• 2:44
  times
• 2:44
  in
• 2:44
  the
• 2:44
  restaurant
• 2:45
  space,
• 2:45
  you
• 2:45
  know,
• 2:46
  incentive
• 2:47
  pay
• 2:47
  is
• 2:47
  limited
• 2:48
  to
• 2:48
  maybe
• 2:49
  a
• 2:49
  general
• 2:49
  manager,
• 2:49
  assistant
• 2:50
  manager.
• 2:50
  It
• 2:50
  doesn't
• 2:51
  get
• 2:51
  down
• 2:51
  to
• 2:51
  the,
• 2:52
  to
• 2:52
  the,
• 2:52
  in
• 2:52
  this
• 2:52
  case,
• 2:53
  the
• 2:53
  barista
• 2:53
  level
• 2:53
  or
• 2:54
  the
• 2:54
  supervisor
• 2:55
  level.
• 2:55
  But
• 2:55
  I
• 2:56
  mean,
• 2:56
  we've,
• 2:56
  we've
• 2:57
  done
• 2:57
  this
• 2:57
  for
• 2:58
  a
• 2:58
  couple
• 2:58
  of
• 2:58
  different
• 2:58
  companies
• 2:59
  to,
• 3:00
  frankly,
• 3:00
  I'll
• 3:00
  be
• 3:01
  honest
• 3:01
  with
• 3:01
  you,
• 3:01
  mixed
• 3:01
  results.
• 3:02
  Sometimes
• 3:02
  the,
• 3:03
  you
• 3:03
  know,
• 3:03
  the
• 3:03
  baristas
• 3:04
  don't
• 3:04
  always
• 3:04
  think
• 3:05
  about
• 3:05
  it
• 3:05
  in
• 3:05
  those
• 3:06
  terms.
• 3:06
  One
• 3:06
  question
• 3:07
  I
• 3:07
  have
• 3:07
  is
• 3:07
  the
• 3:07
  quarterly
• 3:08
  payout,
• 3:09
  you
• 3:09
  know,
• 3:09
  is
• 3:10
  that
• 3:10
  too
• 3:10
  long
• 3:10
  for
• 3:10
  a
• 3:11
  barista?
• 3:11
  Where
• 3:11
  they
• 3:11
  say,
• 3:12
  okay,
• 3:12
  yeah,
• 3:12
  you
• 3:13
  know,
• 3:13
  they
• 3:14
  just
• 3:14
  think
• 3:14
  about
• 3:14
  it,
• 3:14
  you
• 3:15
  know,
• 3:15
  more
• 3:15
  on
• 3:15
  a
• 3:16
  shorter
• 3:16
  or
• 3:16
  near
• 3:17
  term
• 3:17
  basis.
• 3:17
  That's
• 3:18
  some
• 3:18
  of
• 3:18
  the
• 3:18
  challenges
• 3:18
  that
• 3:18
  I've
• 3:19
  seen
• 3:19
  in
• 3:19
  the
• 3:19
  past
• 3:19
  with
• 3:20
  these
• 3:20
  types
• 3:20
  of
• 3:20
  incentive
• 3:21
  programs.
• 3:21
  But
• 3:22
  to
• 3:22
  me,
• 3:22
  it's,
• 3:22
  it's,
• 3:23
  it's
• 3:23
  sharing
• 3:24
  some
• 3:25
  back,
• 3:25
  some
• 3:25
  of
• 3:26
  the
• 3:26
  benefits
• 3:27
  of
• 3:27
  what
• 3:27
  they're
• 3:27
  trying
• 3:27
  to
• 3:28
  drive
• 3:28
  in
• 3:28
  terms
• 3:28
  of
• 3:28
  efficiency
• 3:29
  and
• 3:29
  improve
• 3:29
  profitability
• 3:30
  of
• 3:30
  these
• 3:30
  units.
• 3:31
  Sharing
• 3:31
  some
• 3:32
  of
• 3:32
  that
• 3:32
  back
• 3:32
  through,
• 3:33
  through
• 3:34
  these
• 3:34
  incentive
• 3:34
  programs
• 3:35
  with
• 3:35
  the
• 3:35
  baristas
• 3:35
  and
• 3:36
  supervisors,
• 3:36
  the
• 3:36
  people
• 3:36
  on
• 3:37
  the
• 3:37
  front
• 3:37
  lines
• 3:37
  that
• 3:37
  they
• 3:38
  need
• 3:38
  to
• 3:38
  help,
• 3:38
  you
• 3:39
  know,
• 3:39
  know,
• 3:39
  put
• 3:39
  in
• 3:40
  place
• 3:40
  the
• 3:40
  turnaround
• 3:40
  plan,
• 3:41
  to
• 3:41
  me
• 3:41
  is,
• 3:41
  is
• 3:42
  a
• 3:42
  great
• 3:42
  idea
• 3:42
  and
• 3:42
  it's,
• 3:43
  it's
• 3:43
  hitting
• 3:43
  on
• 3:43
  all,
• 3:43
  all
• 3:44
  the
• 3:44
  right
• 3:44
  messages.
• 3:44
  So
• 3:45
  frankly,
• 3:45
  I
• 3:46
  love
• 3:46
  it.
• 3:47
  Got
• 3:47
  it.
• 3:47
  Okay,
• 3:48
  John,
• 3:48
  so
• 3:48
  based
• 3:48
  on
• 3:48
  your
• 3:48
  experience,
• 3:49
  I'm
• 3:49
  curious
• 3:49
  because
• 3:49
  they
• 3:49
  talked
• 3:49
  about
• 3:50
  three
• 3:50
  things.
• 3:50
  They
• 3:50
  talked
• 3:50
  about,
• 3:51
  you
• 3:52
  know,
• 3:52
  giving
• 3:52
  more
• 3:52
  access
• 3:52
  to
• 3:53
  tips.
• 3:53
  They
• 3:53
  talk
• 3:53
  about
• 3:54
  a
• 3:54
  quarterly
• 3:54
  incentive
• 3:54
  program.
• 3:55
  They
• 3:55
  talked
• 3:55
  about
• 3:55
  weekly
• 3:56
  pay.
• 3:56
  Which
• 3:56
  of
• 3:57
  those
• 3:57
  three
• 3:57
  things
• 3:57
  in
• 3:57
  your
• 3:58
  mind,
• 3:58
  given
• 3:58
  your
• 3:58
  experience
• 3:59
  will
• 3:59
  be
• 4:00
  most
• 4:01
  enjoyed
• 4:02
  or
• 4:02
  liked
• 4:02
  by
• 4:03
  the,
• 4:03
  the,
• 4:03
  the
• 4:04
  baristas
• 4:04
  themselves,
• 4:05
  if
• 4:05
  you
• 4:06
  had
• 4:06
  to
• 4:06
  guess.
• 4:07
  My
• 4:08
  guess
• 4:08
  is
• 4:08
  that
• 4:08
  the
• 4:09
  baristas,
• 4:09
  it's
• 4:10
  going
• 4:10
  to
• 4:10
  be
• 4:10
  the
• 4:10
  weekly
• 4:10
  pay
• 4:11
  and
• 4:11
  the
• 4:11
  tipping.
• 4:11
  Me
• 4:11
  too.
• 4:12
  And
• 4:12
  then,
• 4:12
  and
• 4:12
  then
• 4:12
  for
• 4:13
  the
• 4:13
  supervisors,
• 4:13
  it's
• 4:14
  going
• 4:14
  to
• 4:14
  be
• 4:14
  the
• 4:14
  quarterly
• 4:15
  incentive.
• 4:16
  Yeah,
• 4:16
  I
• 4:16
  think
• 4:16
  that's
• 4:17
  just
• 4:17
  how,
• 4:17
  how,
• 4:18
  you
• 4:18
  know,
• 4:18
  different
• 4:18
  people
• 4:19
  in
• 4:19
  different
• 4:19
  stages
• 4:19
  of
• 4:20
  their
• 4:20
  life
• 4:20
  and
• 4:20
  different
• 4:20
  stages
• 4:21
  of
• 4:21
  their
• 4:21
  career,
• 4:21
  that's
• 4:22
  kind
• 4:22
  of
• 4:22
  just
• 4:22
  how
• 4:22
  they
• 4:22
  think
• 4:22
  about
• 4:23
  it.
• 4:24
  And
• 4:24
  so,
• 4:24
  I
• 4:24
  mean,
• 4:24
  who
• 4:25
  knows?
• 4:25
  I
• 4:25
  mean,
• 4:25
  but
• 4:26
  that
• 4:26
  would
• 4:26
  be
• 4:26
  my
• 4:26
  guess.
• 4:28
  And
• 4:28
  John,
• 4:28
  why,
• 4:28
  why
• 4:28
  is
• 4:29
  we,
• 4:29
  we
• 4:29
  could
• 4:29
  pay
• 4:30
  seems
• 4:30
  pretty
• 4:30
  differentiating,
• 4:31
  but
• 4:31
  it
• 4:31
  also
• 4:31
  seems
• 4:32
  like
• 4:32
  that's
• 4:32
  where
• 4:32
  my
• 4:32
  head
• 4:33
  goes
• 4:33
  too.
• 4:33
  Like
• 4:33
  that's
• 4:33
  what,
• 4:33
  if
• 4:34
  I
• 4:34
  was
• 4:34
  an
• 4:34
  employee,
• 4:34
  that's
• 4:34
  what
• 4:34
  I
• 4:35
  would
• 4:35
  want
• 4:35
  what
• 4:35
  is
• 4:36
  it
• 4:36
  that,
• 4:36
  what
• 4:36
  is
• 4:36
  it
• 4:36
  that
• 4:36
  generally
• 4:37
  prevents
• 4:38
  like
• 4:38
  retailers
• 4:39
  or
• 4:39
  QSR
• 4:39
  operations
• 4:40
  from
• 4:40
  just
• 4:40
  doing
• 4:40
  that
• 4:40
  to
• 4:40
  begin
• 4:41
  with?
• 4:41
  Or
• 4:41
  do
• 4:41
  you
• 4:41
  think
• 4:41
  we'll
• 4:42
  start
• 4:42
  to
• 4:42
  see
• 4:42
  a
• 4:42
  move
• 4:42
  in
• 4:42
  that
• 4:43
  direction?
• 4:43
  So
• 4:44
  I've,
• 4:44
  I've
• 4:44
  done
• 4:45
  a
• 4:45
  lot
• 4:45
  of
• 4:45
  stuff
• 4:45
  in
• 4:45
  my
• 4:46
  career.
• 4:46
  One
• 4:46
  of
• 4:47
  the
• 4:47
  things
• 4:47
  that
• 4:47
  I've
• 4:47
  done,
• 4:48
  and
• 4:48
  I
• 4:48
  won't
• 4:48
  get
• 4:49
  into
• 4:49
  all
• 4:49
  the
• 4:49
  backstory
• 4:50
  or
• 4:50
  whatever
• 4:50
  on
• 4:50
  it
• 4:50
  is,
• 4:51
  is
• 4:51
  help
• 4:51
  very
• 4:52
  frontline
• 4:54
  in
• 4:54
  the
• 4:54
  weeds
• 4:55
  payroll
• 4:55
  processes,
• 4:56
  where
• 4:56
  I
• 4:57
  was
• 4:57
  basically
• 4:57
  helping
• 4:58
  prepare
• 4:58
  payroll
• 4:59
  files
• 4:59
  and
• 4:59
  all
• 4:59
  these
• 4:59
  different
• 5:00
  things
• 5:00
  for,
• 5:01
  for
• 5:01
  certain
• 5:01
  brands
• 5:02
  that
• 5:02
  I
• 5:02
  was
• 5:02
  working
• 5:02
  with.
• 5:03
  And
• 5:03
  I'll
• 5:03
  be
• 5:03
  honest
• 5:03
  with
• 5:03
  you,
• 5:04
  it
• 5:04
  sounds
• 5:04
  simple
• 5:05
  and
• 5:05
  it
• 5:05
  should
• 5:05
  be
• 5:06
  simple,
• 5:06
  but
• 5:06
  I
• 5:06
  think
• 5:06
  for
• 5:07
  a
• 5:07
  lot
• 5:07
  of
• 5:07
  companies,
• 5:08
  some
• 5:08
  of
• 5:08
  these
• 5:08
  processes
• 5:09
  are,
• 5:09
  you
• 5:09
  know,
• 5:10
  it
• 5:11
  does
• 5:11
  take
• 5:11
  time
• 5:11
  and
• 5:11
  some
• 5:12
  of
• 5:12
  them
• 5:12
  are
• 5:12
  manual.
• 5:13
  You're
• 5:13
  managing
• 5:14
  exceptions
• 5:14
  like,
• 5:14
  because
• 5:15
  if
• 5:15
  you're
• 5:15
  thinking
• 5:15
  about
• 5:15
  weekly
• 5:16
  pay,
• 5:16
  that
• 5:16
  means
• 5:16
  you
• 5:16
  got
• 5:16
  to
• 5:16
  close
• 5:17
  out
• 5:17
  the
• 5:17
  hours
• 5:17
  and
• 5:18
  all
• 5:19
  that
• 5:19
  kind
• 5:19
  of
• 5:19
  stuff
• 5:19
  and
• 5:20
  get
• 5:20
  that
• 5:20
  correct.
• 5:21
  So
• 5:21
  it
• 5:21
  does.
• 5:22
  Having
• 5:22
  to
• 5:22
  do
• 5:22
  that
• 5:23
  on
• 5:23
  a
• 5:23
  weekly
• 5:23
  cycle
• 5:24
  rather
• 5:24
  than
• 5:24
  a
• 5:25
  bi
• 5:25
  weekly
• 5:25
  cycle,
• 5:26
  it
• 5:26
  just
• 5:26
  adds
• 5:27
  twice
• 5:27
  as
• 5:27
  much
• 5:27
  work
• 5:28
  overall
• 5:28
  for
• 5:29
  the
• 5:29
  managers
• 5:30
  and
• 5:30
  the
• 5:30
  people
• 5:30
  who
• 5:30
  have
• 5:31
  to
• 5:31
  go
• 5:31
  through
• 5:31
  that
• 5:31
  process
• 5:32
  and
• 5:32
  process
• 5:32
  all
• 5:33
  of
• 5:33
  that.
• 5:33
  So
• 5:34
  to
• 5:34
  me,
• 5:34
  there's
• 5:34
  an
• 5:34
  element
• 5:34
  of
• 5:35
  just
• 5:36
  kind
• 5:36
  of
• 5:36
  back
• 5:36
  office
• 5:37
  work
• 5:38
  that
• 5:38
  needs
• 5:38
  to
• 5:38
  get
• 5:38
  done
• 5:38
  to
• 5:39
  do
• 5:39
  it.
• 5:39
  So
• 5:40
  it
• 5:40
  doesn't
• 5:40
  come,
• 5:41
  it's
• 5:41
  not
• 5:41
  as
• 5:41
  easy
• 5:42
  as
• 5:42
  just
• 5:42
  flipping
• 5:42
  the
• 5:42
  switch
• 5:43
  or
• 5:43
  whatever.
• 5:43
  There's
• 5:44
  work
• 5:44
  to
• 5:44
  do
• 5:44
  on
• 5:44
  it.
• 5:45
  So
• 5:45
  I
• 5:45
  think
• 5:45
  a
• 5:45
  lot
• 5:45
  of
• 5:45
  it
• 5:46
  is
• 5:46
  very
• 5:46
  practical
• 5:47
  considerations
• 5:48
  like
• 5:48
  that.
• 5:48
  But
• 5:49
  I
• 5:49
  think
• 5:49
  they're
• 5:50
  doing
• 5:50
  the
• 5:50
  right
• 5:50
  thing
• 5:50
  to
• 5:50
  say,
• 5:50
  okay,
• 5:51
  we're
• 5:51
  going
• 5:51
  to
• 5:51
  do
• 5:52
  that.
• 5:52
  We're
• 5:52
  going
• 5:52
  to
• 5:52
  invest
• 5:52
  in
• 5:53
  kind
• 5:53
  of
• 5:54
  putting
• 5:54
  resources
• 5:54
  and
• 5:55
  time
• 5:55
  behind
• 5:55
  that
• 5:56
  because
• 5:56
  we
• 5:56
  think
• 5:56
  it's
• 5:56
  going
• 5:57
  to
• 5:57
  make
• 5:57
  a
• 5:57
  difference
• 5:57
  to
• 5:57
  our
• 5:57
  teams
• 5:58
  and
• 5:58
  hopefully
• 5:59
  that
• 5:59
  is
• 5:59
  reflected
• 6:00
  in
• 6:00
  how
• 6:00
  they
• 6:00
  interact
• 6:01
  with
• 6:01
  the
• 6:01
  guests
• 6:02
  and,
• 6:02
  and
• 6:02
  implement
• 6:03
  the
• 6:03
  different
• 6:04
  aspects
• 6:04
  of
• 6:04
  the
• 6:04
  plan
• 6:05
  that
• 6:05
  they
• 6:05
  want
• 6:05
  to,
• 6:05
  that
• 6:06
  they
• 6:06
  want
• 6:06
  to
• 6:06
  do.
• 6:07
  Yeah.
• 6:07
  So,
• 6:08
  I
• 6:08
  mean,
• 6:08
  I
• 6:08
  think
• 6:08
  it
• 6:08
  says
• 6:08
  a
• 6:08
  lot
• 6:09
  about
• 6:09
  Starbucks
• 6:09
  too,
• 6:09
  that
• 6:09
  they're
• 6:10
  willing
• 6:10
  to
• 6:10
  unwind
• 6:11
  years
• 6:11
  and
• 6:11
  years
• 6:12
  of
• 6:12
  doing
• 6:12
  it
• 6:12
  at
• 6:13
  the
• 6:13
  scale
• 6:13
  that
• 6:13
  they
• 6:13
  are
• 6:13
  doing
• 6:14
  it
• 6:14
  because
• 6:14
  there's
• 6:14
  going
• 6:14
  to
• 6:14
  be
• 6:15
  a
• 6:15
  cost
• 6:15
  to
• 6:15
  put
• 6:15
  this
• 6:15
  into
• 6:16
  place,
• 6:16
  like
• 6:16
  you
• 6:16
  said.
• 6:16
  Yes,
• 6:17
  but
• 6:17
  they're,
• 6:17
  they're,
• 6:17
  they're,
• 6:18
  they're,
• 6:18
  they're
• 6:18
  taking
• 6:18
  on
• 6:19
  that
• 6:19
  cost
• 6:19
  and
• 6:19
  trying
• 6:19
  to
• 6:20
  do
• 6:20
  this
• 6:20
  for
• 6:20
  the
• 6:20
  benefits
• 6:21
  of
• 6:21
  their
• 6:21
  employees.
• 6:22
  All
• 6:22
  right,
• 6:22
  Jed,
• 6:22
  I'm
• 6:23
  curious,
• 6:23
  are
• 6:23
  you
• 6:24
  as
• 6:24
  bullish
• 6:24
  as
• 6:24
  John,
• 6:25
  though?
• 6:25
  John
• 6:25
  gave
• 6:25
  it
• 6:25
  an
• 6:26
  eight.
• 6:26
  John
• 6:27
  gave
• 6:27
  it
• 6:27
  an
• 6:27
  eight.
• 6:27
  I
• 6:27
  think
• 6:28
  you
• 6:28
  can
• 6:28
  tell
• 6:28
  which
• 6:28
  way
• 6:28
  I'm
• 6:28
  leading.
• 6:29
  I'm
• 6:29
  not
• 6:29
  quite
• 6:29
  as
• 6:29
  bullish,
• 6:30
  but
• 6:30
  I
• 6:30
  want
• 6:30
  to
• 6:30
  go
• 6:30
  to
• 6:30
  you
• 6:31
  first.
• 6:31
  So
• 6:31
  like
• 6:32
  a
• 6:32
  scale
• 6:33
  of
• 6:33
  1
• 6:33
  to
• 6:33
  10.
• 6:33
  How
• 6:33
  bullish
• 6:34
  are
• 6:34
  you
• 6:34
  on
• 6:34
  the
• 6:34
  back
• 6:35
  to
• 6:35
  Starbucks
• 6:35
  turnaround
• 6:36
  plan?
• 6:37
  I
• 6:37
  wouldn't
• 6:37
  give
• 6:37
  a
• 6:37
  number,
• 6:38
  but
• 6:38
  I'd
• 6:38
  say
• 6:38
  I'm
• 6:38
  cautiously
• 6:39
  optimistic.
• 6:41
  They're
• 6:41
  improving
• 6:41
  so
• 6:42
  above
• 6:42
  a
• 6:42
  five.
• 6:43
  A
• 6:44
  five.
• 6:44
  All
• 6:44
  right.
• 6:44
  I
• 6:44
  would
• 6:45
  say
• 6:45
  closer
• 6:45
  to
• 6:45
  where
• 6:45
  John
• 6:46
  is,
• 6:46
  you
• 6:47
  know,
• 6:47
  they're
• 6:47
  improving
• 6:47
  but
• 6:47
  it's
• 6:48
  not
• 6:48
  proven
• 6:48
  yet.
• 6:48
  So
• 6:49
  I
• 6:49
  want
• 6:49
  to
• 6:49
  see
• 6:49
  how
• 6:49
  it
• 6:49
  plays
• 6:50
  out.
• 6:50
  I
• 6:50
  think
• 6:50
  the
• 6:50
  biggest
• 6:51
  challenge
• 6:51
  for
• 6:52
  Starbucks
• 6:52
  today
• 6:52
  is
• 6:53
  it's
• 6:53
  really
• 6:53
  three
• 6:53
  businesses.
• 6:54
  It's
• 6:54
  a
• 6:54
  cafe
• 6:55
  experience,
• 6:56
  a
• 6:56
  drive
• 6:56
  thru
• 6:56
  QSR
• 6:57
  and
• 6:57
  a
• 6:57
  digital
• 6:58
  pickup
• 6:58
  model.
• 6:59
  I
• 6:59
  was
• 6:59
  looking
• 7:00
  into
• 7:00
  it
• 7:00
  and
• 7:00
  about
• 7:00
  60%
• 7:01
  of
• 7:01
  their
• 7:01
  transactions
• 7:02
  touch
• 7:02
  the
• 7:02
  store.
• 7:03
  But
• 7:03
  only
• 7:04
  half
• 7:04
  are
• 7:04
  actually
• 7:04
  people
• 7:05
  enjoying
• 7:05
  the
• 7:05
  cafe,
• 7:06
  while
• 7:06
  the
• 7:07
  other
• 7:07
  half
• 7:07
  is
• 7:07
  mobile
• 7:07
  pickup.
• 7:08
  And
• 7:08
  then
• 7:08
  Obviously
• 7:08
  the
• 7:08
  remaining
• 7:09
  40%
• 7:09
  is
• 7:10
  drive
• 7:10
  thru.
• 7:10
  And
• 7:11
  so
• 7:11
  these
• 7:11
  are
• 7:11
  very
• 7:11
  different
• 7:12
  and
• 7:12
  often
• 7:12
  competing
• 7:13
  needs.
• 7:13
  So
• 7:14
  they're
• 7:14
  doing
• 7:14
  the
• 7:14
  right
• 7:14
  things.
• 7:14
  They're
• 7:15
  reinvesting
• 7:15
  in
• 7:15
  partners,
• 7:16
  as
• 7:16
  you
• 7:16
  guys
• 7:16
  mentioned.
• 7:17
  They're
• 7:17
  simplifying
• 7:17
  the
• 7:18
  experience
• 7:18
  and
• 7:18
  bringing
• 7:19
  back
• 7:19
  the
• 7:19
  original
• 7:20
  notion
• 7:20
  of
• 7:20
  the
• 7:20
  third
• 7:21
  place.
• 7:21
  But
• 7:22
  that
• 7:22
  tension
• 7:22
  is
• 7:23
  going
• 7:23
  to
• 7:23
  be
• 7:23
  the
• 7:23
  high,
• 7:23
  that
• 7:23
  highest
• 7:24
  ticket
• 7:24
  experience
• 7:25
  being
• 7:25
  in
• 7:25
  store.
• 7:25
  It's
• 7:26
  actually
• 7:26
  the
• 7:26
  least
• 7:26
  efficient.
• 7:27
  And
• 7:28
  while
• 7:28
  drive
• 7:28
  thru
• 7:28
  and
• 7:28
  mobile
• 7:29
  are
• 7:29
  what
• 7:29
  really
• 7:29
  are
• 7:29
  driving
• 7:30
  the
• 7:30
  throughput
• 7:30
  and
• 7:30
  profitability.
• 7:31
  So
• 7:32
  my
• 7:32
  bullish,
• 7:32
  my,
• 7:33
  my,
• 7:33
  I
• 7:33
  would
• 7:33
  say
• 7:33
  leaning
• 7:34
  towards
• 7:34
  the
• 7:34
  bullishness
• 7:35
  on
• 7:35
  is
• 7:35
  I
• 7:36
  think
• 7:36
  they've
• 7:36
  rediscovered
• 7:37
  the
• 7:37
  soul
• 7:37
  of
• 7:37
  the
• 7:37
  brand.
• 7:38
  But
• 7:38
  the
• 7:38
  question
• 7:38
  is
• 7:38
  really
• 7:39
  going
• 7:39
  to
• 7:39
  be
• 7:39
  whether
• 7:39
  they
• 7:39
  can
• 7:40
  operationalize
• 7:40
  that
• 7:41
  at
• 7:41
  scale.
• 7:42
  Yes,
• 7:42
  yes,
• 7:43
  I
• 7:43
  100
• 7:43
  agree.
• 7:44
  And
• 7:44
  I
• 7:44
  think,
• 7:44
  you
• 7:44
  know,
• 7:44
  when
• 7:44
  I
• 7:45
  came
• 7:45
  into
• 7:45
  this
• 7:45
  I
• 7:45
  was
• 7:45
  like,
• 7:45
  I
• 7:46
  was
• 7:46
  like
• 7:46
  a
• 7:46
  five
• 7:47
  because
• 7:47
  I
• 7:47
  was
• 7:47
  like,
• 7:47
  I
• 7:48
  was
• 7:48
  like
• 7:48
  right
• 7:48
  in
• 7:48
  the
• 7:48
  middle.
• 7:49
  But
• 7:49
  I
• 7:49
  think
• 7:49
  talking
• 7:50
  to
• 7:50
  both
• 7:50
  of
• 7:50
  you,
• 7:50
  I'm
• 7:50
  kind
• 7:50
  of
• 7:50
  pushing
• 7:51
  it
• 7:51
  up
• 7:51
  into
• 7:51
  the
• 7:51
  6
• 7:52
  to
• 7:52
  7
• 7:52
  range
• 7:52
  because
• 7:53
  I
• 7:53
  think,
• 7:53
  you
• 7:53
  know,
• 7:54
  you
• 7:54
  know,
• 7:54
  as
• 7:54
  John,
• 7:54
  you
• 7:54
  are
• 7:55
  ticket,
• 7:55
  you
• 7:55
  had
• 7:55
  the
• 7:55
  quota
• 7:56
  quote
• 7:56
  of
• 7:56
  the
• 7:56
  show
• 7:56
  so
• 7:57
  far,
• 7:57
  which
• 7:57
  was
• 7:57
  the
• 7:58
  thing
• 7:58
  you
• 7:58
  said
• 7:58
  about,
• 7:58
  you
• 7:58
  know,
• 7:59
  customers
• 7:59
  in
• 7:59
  relation
• 8:00
  to
• 8:00
  employees.
• 8:01
  These
• 8:01
  are
• 8:01
  the
• 8:02
  right
• 8:02
  moves
• 8:02
  for
• 8:02
  the
• 8:02
  employees.
• 8:02
  And
• 8:03
  so
• 8:03
  Jen,
• 8:03
  to
• 8:03
  your
• 8:03
  point,
• 8:04
  like,
• 8:04
  even
• 8:04
  though,
• 8:05
  you
• 8:05
  know
• 8:06
  less
• 8:06
  and
• 8:06
  less
• 8:06
  customers
• 8:07
  are
• 8:07
  coming
• 8:07
  into
• 8:07
  the
• 8:08
  store
• 8:08
  every
• 8:08
  day,
• 8:08
  you
• 8:08
  still
• 8:08
  need
• 8:09
  happy
• 8:09
  employees
• 8:10
  to
• 8:10
  run
• 8:10
  the
• 8:10
  operations
• 8:11
  for
• 8:11
  mobile
• 8:11
  pickup
• 8:12
  and
• 8:12
  a
• 8:12
  drive
• 8:12
  through.
• 8:13
  And
• 8:13
  that's
• 8:14
  fundamental.
• 8:14
  So
• 8:14
  I
• 8:15
  like
• 8:15
  that
• 8:15
  in
• 8:15
  terms
• 8:16
  of
• 8:16
  the
• 8:16
  strategy.
• 8:17
  But
• 8:17
  the
• 8:17
  one
• 8:17
  thing
• 8:17
  I
• 8:17
  just
• 8:17
  keep
• 8:18
  coming
• 8:18
  back
• 8:18
  to
• 8:18
  you
• 8:18
  is
• 8:19
  no
• 8:19
  matter
• 8:19
  how
• 8:20
  hard
• 8:20
  I
• 8:20
  try,
• 8:20
  every
• 8:21
  time
• 8:21
  I
• 8:21
  interact
• 8:21
  with
• 8:22
  Starbucks
• 8:22
  now
• 8:22
  it
• 8:22
  is
• 8:23
  through
• 8:23
  the
• 8:23
  mobile
• 8:23
  app.
• 8:24
  And
• 8:24
  so
• 8:24
  that
• 8:25
  is
• 8:25
  going
• 8:25
  to
• 8:25
  become
• 8:25
  an
• 8:26
  operational
• 8:26
  throughput.
• 8:27
  You
• 8:27
  did
• 8:27
  the
• 8:27
  same
• 8:27
  thing,
• 8:28
  right?
• 8:28
  You've
• 8:28
  got
• 8:28
  your
• 8:28
  coffee
• 8:29
  cup
• 8:29
  right
• 8:29
  there.
• 8:30
  And
• 8:30
  so
• 8:30
  like
• 8:30
  that's
• 8:31
  going
• 8:31
  to
• 8:31
  become
• 8:32
  an
• 8:32
  operational
• 8:33
  throughput
• 8:33
  issue
• 8:34
  over
• 8:34
  time.
• 8:34
  The
• 8:35
  more
• 8:35
  and
• 8:35
  more
• 8:35
  people.
• 8:35
  You
• 8:36
  push
• 8:36
  through
• 8:36
  that
• 8:36
  and
• 8:36
  I
• 8:37
  just
• 8:37
  don't
• 8:37
  know
• 8:38
  that
• 8:39
  this
• 8:39
  is
• 8:40
  enough.
• 8:40
  There
• 8:40
  has
• 8:41
  to
• 8:41
  be
• 8:41
  more
• 8:41
  things
• 8:41
  than.
• 8:42
  Than
• 8:43
  cozy
• 8:43
  couches
• 8:44
  and
• 8:44
  soft
• 8:45
  leather
• 8:45
  sofas
• 8:46
  and
• 8:46
  things
• 8:46
  like
• 8:47
  that
• 8:47
  to.
• 8:47
  To.
• 8:47
  To.
• 8:48
  To
• 8:48
  ameliorate
• 8:49
  that
• 8:49
  problem.
• 8:49
  But,
• 8:49
  Jen,
• 8:49
  I'll
• 8:49
  give
• 8:50
  you
• 8:50
  the
• 8:50
  last
• 8:50
  word
• 8:50
  here.
• 8:51
  Yeah,
• 8:51
  I
• 8:51
  mean,
• 8:52
  as.
• 8:52
  As
• 8:52
  you
• 8:52
  mentioned,
• 8:53
  they're
• 8:53
  trying
• 8:54
  to
• 8:54
  essentially
• 8:55
  determine
• 8:55
  will
• 8:56
  that
• 8:56
  draw
• 8:56
  customers
• 8:57
  in.
• 8:57
  Right?
• 8:57
  Like,
• 8:57
  is
• 8:57
  that
• 8:57
  what
• 8:58
  customers
• 8:58
  want
• 8:58
  anymore?
• 8:59
  Do
• 8:59
  they.
• 8:59
  Are
• 8:59
  they
• 8:59
  leaning
• 9:00
  back
• 9:00
  into
• 9:00
  the
• 9:00
  original
• 9:00
  notion
• 9:01
  of
• 9:01
  Starb,
• 9:02
  more
• 9:02
  experiential?
• 9:03
  Or
• 9:04
  do
• 9:04
  they
• 9:04
  prefer
• 9:04
  things
• 9:05
  to
• 9:05
  be
• 9:05
  transactional
• 9:06
  in
• 9:06
  nature?
• 9:06
  Like
• 9:07
  the
• 9:07
  mobile
• 9:08
  order
• 9:08
  pickup
• 9:08
  that
• 9:09
  I
• 9:09
  have
• 9:09
  in
• 9:09
  my
• 9:09
  hand.
• 9:10
  Right.
• 9:10
  Yeah.
• 9:11
  The
• 9:11
  venti,
• 9:12
  I
• 9:12
  might
• 9:12
  add
• 9:12
  to
• 9:12
  that.
• 9:12
  Looks
• 9:13
  like
• 9:13
  a
• 9:13
  venti.
• 9:13
  It's
• 9:14
  early
• 9:14
  in
• 9:14
  California.
• 9:16
  Oh,
• 9:16
  my
• 9:16
  God.
• 9:16
  Yes.
• 9:16
  You're.
• 9:17
  I
• 9:17
  didn't
• 9:17
  ask
• 9:18
  you
• 9:18
  guys.
• 9:18
  You
• 9:18
  ask
• 9:18
  you
• 9:18
  guys
• 9:19
  where
• 9:19
  you
• 9:19
  are
• 9:19
  to
• 9:20
  start
• 9:20
  off.
• 9:20
  Yes.
• 9:20
  It's
• 9:21
  very
• 9:21
  early.
• 9:21
  Oh,
• 9:21
  my
• 9:21
  God.
• 9:22
  Fair
• 9:22
  play
• 9:22
  to
• 9:22
  you,
• 9:22
  Jed.
• 9:23
  And
• 9:23
  then
• 9:23
  the.
• 9:23
  The
• 9:24
  traitor.
• 9:24
  You
• 9:24
  need
• 9:25
  to
• 9:25
  get
• 9:25
  the
• 9:25
  traitor
• 9:25
  next
• 9:26
  time.