Latest / Omni Talk Retail / Fast Five Shorts | Starbucks Unveils Its Turnaround Plan

Transcript

Fast Five Shorts | Starbucks Unveils Its Turnaround Plan · Omni Talk Retail

• 0:00
  So
• 0:00
  Starbucks
• 0:00
  new
• 0:01
  CEO
• 0:01
  Brian
• 0:02
  Nickel
• 0:02
  wants
• 0:03
  to
• 0:03
  make
• 0:03
  Starbucks
• 0:04
  a
• 0:04
  coffee
• 0:04
  shop
• 0:05
  again,
• 0:05
  but
• 0:06
  also
• 0:06
  a
• 0:07
  faster
• 0:07
  one,
• 0:08
  according
• 0:08
  to
• 0:08
  Restaurant
• 0:09
  Business
• 0:09
  Online.
• 0:09
  Nickel,
• 0:10
  in
• 0:10
  his
• 0:10
  first
• 0:10
  earnings
• 0:11
  call
• 0:11
  at
• 0:11
  the
• 0:11
  helm
• 0:12
  of
• 0:12
  the
• 0:12
  Seattle
• 0:12
  based
• 0:13
  chain
• 0:13
  last
• 0:13
  Wednesday,
• 0:14
  described
• 0:15
  a
• 0:15
  strategy
• 0:15
  that
• 0:15
  effectively
• 0:16
  makes
• 0:16
  the
• 0:16
  company
• 0:16
  a
• 0:17
  coffee
• 0:17
  shop
• 0:17
  again,
• 0:18
  with
• 0:18
  comfortable
• 0:18
  seating
• 0:19
  and
• 0:19
  ceramic
• 0:19
  mugs
• 0:20
  for
• 0:20
  those
• 0:20
  who
• 0:20
  want
• 0:21
  to
• 0:21
  spend
• 0:21
  some
• 0:21
  time
• 0:21
  inside,
• 0:22
  much
• 0:22
  like
• 0:22
  they
• 0:22
  had
• 0:23
  for
• 0:23
  most
• 0:23
  of
• 0:23
  the
• 0:23
  chain's
• 0:24
  history.
• 0:24
  But
• 0:25
  the
• 0:25
  company
• 0:25
  will
• 0:25
  also
• 0:26
  be
• 0:26
  quicker
• 0:26
  for
• 0:27
  those
• 0:27
  customers
• 0:27
  who
• 0:28
  have
• 0:28
  no
• 0:28
  intent
• 0:28
  on
• 0:29
  sitting
• 0:29
  anywhere
• 0:29
  but
• 0:30
  their
• 0:30
  office
• 0:30
  chair
• 0:30
  or
• 0:30
  their
• 0:31
  automobile.
• 0:31
  Nikol
• 0:32
  wants
• 0:32
  every
• 0:33
  customer
• 0:33
  to
• 0:33
  get
• 0:33
  their
• 0:33
  drink
• 0:34
  within
• 0:34
  four
• 0:34
  minutes
• 0:34
  of
• 0:35
  ordering,
• 0:35
  a
• 0:35
  goal
• 0:35
  the
• 0:36
  company
• 0:36
  currently
• 0:36
  meets
• 0:37
  only
• 0:37
  half
• 0:38
  the
• 0:38
  time.
• 0:39
  It's
• 0:39
  wild
• 0:39
  he's
• 0:39
  intent
• 0:40
  on
• 0:40
  achieving
• 0:41
  that
• 0:41
  goal.
• 0:41
  Nicole
• 0:42
  mentioned
• 0:42
  four
• 0:43
  minutes
• 0:43
  13
• 0:44
  times
• 0:44
  on
• 0:44
  the
• 0:45
  earnings
• 0:45
  call,
• 0:46
  even
• 0:46
  going
• 0:46
  so
• 0:46
  far
• 0:47
  as
• 0:47
  saying,
• 0:47
  quote,
• 0:48
  I'm
• 0:48
  putting
• 0:48
  a
• 0:48
  full
• 0:49
  court
• 0:49
  press
• 0:50
  on
• 0:50
  solving
• 0:51
  four
• 0:51
  minutes,
• 0:52
  end
• 0:52
  quote.
• 0:52
  Starbucks
• 0:53
  also
• 0:53
  announced
• 0:54
  on
• 0:54
  the
• 0:54
  earnings
• 0:54
  call
• 0:54
  that
• 0:54
  it
• 0:55
  plans
• 0:55
  to
• 0:55
  stop
• 0:55
  charging
• 0:56
  customers
• 0:56
  who
• 0:56
  order
• 0:56
  non
• 0:57
  dairy
• 0:57
  beverage
• 0:57
  modifiers
• 0:58
  for
• 0:58
  their
• 0:58
  drinks,
• 0:58
  such
• 0:59
  as
• 0:59
  oat
• 0:59
  milk
• 0:59
  or
• 0:59
  almond
• 1:00
  milk,
• 1:00
  and
• 1:00
  that
• 1:00
  it
• 1:01
  plans
• 1:01
  to
• 1:01
  bring
• 1:01
  back
• 1:01
  the
• 1:02
  condiment
• 1:02
  bars
• 1:02
  were
• 1:03
  that
• 1:03
  were
• 1:03
  a
• 1:03
  casualty
• 1:04
  of
• 1:04
  the
• 1:04
  pandemic,
• 1:05
  which
• 1:05
  will
• 1:05
  help
• 1:06
  speed
• 1:06
  service
• 1:06
  because
• 1:07
  baristas
• 1:07
  will
• 1:07
  be
• 1:07
  able
• 1:08
  to
• 1:08
  simply
• 1:08
  hand
• 1:08
  customers
• 1:09
  their
• 1:09
  coffees
• 1:10
  right
• 1:10
  at
• 1:10
  the
• 1:11
  point
• 1:11
  of
• 1:11
  sale.
• 1:12
  While
• 1:13
  removing
• 1:13
  those
• 1:13
  charges
• 1:14
  for
• 1:14
  the
• 1:14
  non
• 1:15
  dairy
• 1:15
  milk
• 1:16
  will
• 1:16
  cost
• 1:17
  the
• 1:17
  company
• 1:17
  some
• 1:18
  revenue.
• 1:18
  Nickel
• 1:18
  believes
• 1:19
  that
• 1:19
  allowing
• 1:20
  customers
• 1:20
  to
• 1:20
  add
• 1:21
  their
• 1:21
  own
• 1:21
  almond
• 1:21
  milk
• 1:22
  will
• 1:22
  improve
• 1:23
  through
• 1:23
  throughput
• 1:24
  and
• 1:24
  help
• 1:24
  traffic
• 1:25
  in
• 1:25
  the
• 1:25
  long
• 1:25
  run.
• 1:26
  And
• 1:26
  customers
• 1:26
  will
• 1:26
  probably
• 1:27
  like
• 1:27
  what
• 1:27
  amounts
• 1:28
  to
• 1:28
  be
• 1:28
  a
• 1:28
  10%
• 1:29
  discount
• 1:30
  on
• 1:30
  their
• 1:30
  drink
• 1:30
  now.
• 1:30
  Chris.
• 1:31
  Wow.
• 1:32
  Where
• 1:32
  do
• 1:32
  we
• 1:32
  start?
• 1:32
  AD
• 1:33
  oh
• 1:33
  my
• 1:33
  God.
• 1:33
  This
• 1:34
  is
• 1:34
  also
• 1:34
  the
• 1:34
  A
• 1:35
  and
• 1:35
  M
• 1:35
  put
• 1:35
  you
• 1:35
  on
• 1:35
  the
• 1:36
  spot
• 1:36
  question.
• 1:37
  Oh,
• 1:37
  geez,
• 1:37
  I
• 1:37
  forgot
• 1:38
  about
• 1:38
  that.
• 1:38
  We
• 1:38
  don't
• 1:38
  have
• 1:39
  that
• 1:39
  yet.
• 1:39
  Oh,
• 1:39
  God.
• 1:40
  Okay,
• 1:40
  okay.
• 1:41
  Lot
• 1:42
  of
• 1:42
  rose.
• 1:42
  Lots
• 1:42
  of
• 1:42
  questions
• 1:43
  here.
• 1:43
  Yes.
• 1:44
  Oh
• 1:44
  my
• 1:44
  God.
• 1:44
  All
• 1:44
  right,
• 1:45
  all
• 1:45
  right.
• 1:45
  So
• 1:46
  A
• 1:46
  and
• 1:46
  M
• 1:46
  wants
• 1:46
  to
• 1:47
  know.
• 1:47
  This
• 1:47
  is
• 1:47
  their
• 1:48
  question
• 1:48
  for
• 1:48
  you.
• 1:49
  We
• 1:49
  discussed
• 1:50
  the
• 1:50
  CEO
• 1:50
  transition
• 1:51
  and
• 1:51
  what
• 1:51
  Starbucks
• 1:52
  should
• 1:52
  do
• 1:53
  next
• 1:53
  with
• 1:53
  you
• 1:54
  guys
• 1:54
  on
• 1:54
  the
• 1:54
  Fast
• 1:55
  five.
• 1:55
  When
• 1:55
  it
• 1:55
  was
• 1:55
  announced
• 1:56
  and
• 1:56
  we
• 1:56
  hosted
• 1:57
  a
• 1:57
  few
• 1:57
  months
• 1:57
  ago
• 1:58
  on
• 1:58
  that
• 1:58
  podcast,
• 1:59
  we
• 1:59
  said
• 1:59
  that
• 1:59
  Starbucks
• 2:00
  needed
• 2:00
  to
• 2:00
  get
• 2:00
  back
• 2:00
  to
• 2:01
  improving
• 2:01
  the
• 2:01
  poor
• 2:01
  speed
• 2:02
  of
• 2:02
  service
• 2:02
  and
• 2:02
  long
• 2:03
  waits,
• 2:03
  reset
• 2:04
  the
• 2:04
  right
• 2:04
  price
• 2:05
  value
• 2:05
  on
• 2:05
  products,
• 2:06
  and
• 2:06
  focus
• 2:06
  on
• 2:07
  fundamental
• 2:07
  Starbucks
• 2:08
  experience
• 2:08
  for
• 2:09
  those
• 2:09
  who
• 2:09
  sit
• 2:09
  in
• 2:10
  stores.
• 2:10
  So
• 2:10
  the
• 2:11
  question
• 2:11
  A
• 2:11
  and
• 2:11
  M
• 2:12
  has
• 2:12
  is,
• 2:12
  was
• 2:13
  Brian
• 2:13
  listening
• 2:14
  to
• 2:14
  all
• 2:14
  of
• 2:14
  us
• 2:15
  all
• 2:15
  along
• 2:16
  and
• 2:16
  did
• 2:16
  he
• 2:16
  steal
• 2:17
  our
• 2:17
  suggested
• 2:18
  playbook?
• 2:19
  Chris,
• 2:19
  the
• 2:19
  floor
• 2:20
  is
• 2:20
  yours.
• 2:21
  Oh,
• 2:21
  my
• 2:21
  God.
• 2:21
  What
• 2:22
  do
• 2:22
  we
• 2:22
  like
• 2:22
  to
• 2:22
  think
• 2:22
  so
• 2:23
  af.
• 2:23
  What
• 2:23
  do
• 2:23
  we
• 2:24
  like
• 2:24
  to
• 2:24
  think
• 2:24
  so.
• 2:24
  Yes.
• 2:25
  I
• 2:25
  mean,
• 2:26
  chances
• 2:27
  are
• 2:27
  no.
• 2:28
  But
• 2:28
  maybe,
• 2:28
  you
• 2:28
  know,
• 2:29
  maybe.
• 2:29
  Maybe
• 2:29
  somebody
• 2:30
  was
• 2:30
  inspired
• 2:30
  inside
• 2:31
  his
• 2:31
  organization
• 2:31
  to
• 2:32
  help
• 2:32
  him
• 2:32
  put
• 2:32
  this
• 2:32
  plan
• 2:33
  together.
• 2:33
  But
• 2:34
  I
• 2:34
  mean,
• 2:34
  Anne,
• 2:34
  I
• 2:34
  don't
• 2:35
  know
• 2:35
  about
• 2:35
  you,
• 2:35
  I
• 2:35
  don't
• 2:35
  know
• 2:35
  if
• 2:35
  you're
• 2:36
  buying
• 2:36
  this
• 2:36
  or
• 2:36
  not,
• 2:36
  because
• 2:36
  I'm
• 2:37
  curious
• 2:37
  because
• 2:37
  you,
• 2:37
  you
• 2:38
  kind
• 2:38
  of,
• 2:38
  I
• 2:38
  think
• 2:38
  in
• 2:39
  that
• 2:39
  same
• 2:39
  discussion
• 2:39
  went
• 2:40
  the
• 2:40
  complete
• 2:40
  different
• 2:41
  direction.
• 2:41
  So
• 2:41
  I'm
• 2:41
  curious
• 2:42
  to
• 2:42
  see
• 2:42
  what
• 2:42
  you
• 2:42
  think.
• 2:42
  But,
• 2:43
  but
• 2:43
  I'm
• 2:43
  not
• 2:43
  buying
• 2:44
  a
• 2:44
  first
• 2:44
  class
• 2:45
  ticket
• 2:45
  on
• 2:45
  this
• 2:45
  new
• 2:46
  turnaround
• 2:46
  train
• 2:47
  plan.
• 2:47
  But
• 2:47
  I'm
• 2:48
  definitely,
• 2:48
  I'm
• 2:49
  definitely
• 2:49
  happy
• 2:49
  to
• 2:49
  sit
• 2:49
  and
• 2:50
  coach
• 2:50
  along
• 2:50
  this
• 2:51
  journey
• 2:51
  right
• 2:51
  now.
• 2:51
  I'm
• 2:52
  definitely
• 2:52
  happy.
• 2:52
  I
• 2:53
  mean,
• 2:53
  I
• 2:53
  love
• 2:53
  the
• 2:53
  creamers
• 2:54
  in
• 2:54
  the
• 2:54
  condiment
• 2:54
  bar
• 2:55
  move.
• 2:55
  That
• 2:55
  is
• 2:55
  a
• 2:55
  win
• 2:56
  win
• 2:56
  for
• 2:56
  me,
• 2:57
  both
• 2:57
  for
• 2:57
  the
• 2:57
  customers
• 2:57
  and
• 2:58
  for
• 2:58
  staff
• 2:58
  operations.
• 2:59
  I
• 2:59
  think
• 2:59
  it
• 2:59
  does
• 3:00
  everything
• 3:00
  they
• 3:00
  say
• 3:00
  it's
• 3:00
  going
• 3:01
  to
• 3:01
  do.
• 3:01
  I
• 3:02
  love
• 3:02
  the
• 3:02
  focus
• 3:02
  on
• 3:03
  four
• 3:03
  minutes
• 3:03
  because
• 3:04
  that
• 3:04
  is
• 3:04
  personally
• 3:05
  my
• 3:05
  biggest,
• 3:06
  biggest
• 3:06
  gripe,
• 3:07
  particularly
• 3:07
  when
• 3:07
  I
• 3:08
  go
• 3:08
  into
• 3:08
  the
• 3:08
  store
• 3:08
  to
• 3:09
  order
• 3:09
  and
• 3:09
  it
• 3:09
  has
• 3:09
  taken
• 3:10
  me
• 3:10
  sometimes
• 3:10
  20
• 3:11
  minutes
• 3:11
  to
• 3:11
  get
• 3:11
  my
• 3:11
  drink
• 3:12
  and
• 3:12
  that
• 3:12
  is
• 3:12
  just
• 3:13
  too
• 3:13
  freaking
• 3:13
  long.
• 3:14
  Now
• 3:14
  how
• 3:14
  you
• 3:14
  do
• 3:15
  that
• 3:15
  algorithmically
• 3:16
  is
• 3:16
  a
• 3:16
  big
• 3:16
  question.
• 3:17
  I
• 3:17
  don't
• 3:17
  even
• 3:17
  know
• 3:17
  if
• 3:17
  it's
• 3:18
  possible
• 3:18
  given
• 3:18
  how
• 3:18
  many
• 3:19
  mobile
• 3:19
  orders
• 3:19
  you
• 3:19
  got
• 3:19
  going
• 3:20
  through
• 3:20
  the
• 3:20
  system.
• 3:21
  The
• 3:21
  part
• 3:21
  that
• 3:21
  I'm
• 3:22
  most
• 3:22
  like
• 3:22
  kind
• 3:22
  of
• 3:23
  leery
• 3:23
  about
• 3:23
  though,
• 3:24
  is
• 3:24
  the
• 3:25
  ceramic
• 3:25
  mug
• 3:26
  thing
• 3:26
  because
• 3:27
  that
• 3:27
  actually
• 3:28
  requires
• 3:28
  a
• 3:28
  pretty
• 3:29
  sizable
• 3:29
  operational
• 3:30
  change.
• 3:31
  You
• 3:31
  have
• 3:31
  to
• 3:31
  collect
• 3:31
  them,
• 3:32
  you
• 3:32
  have
• 3:32
  to
• 3:32
  get
• 3:32
  them
• 3:33
  washed,
• 3:33
  you
• 3:33
  have
• 3:33
  to
• 3:33
  keep
• 3:33
  them
• 3:34
  in
• 3:34
  stock.
• 3:34
  But
• 3:34
  you
• 3:35
  can
• 3:35
  do
• 3:35
  that
• 3:35
  now
• 3:35
  at
• 3:36
  Starbucks
• 3:36
  if
• 3:36
  you
• 3:36
  want.
• 3:37
  You
• 3:37
  can
• 3:37
  get
• 3:37
  a
• 3:37
  ceramic
• 3:38
  mug
• 3:39
  from
• 3:39
  Starbucks?
• 3:40
  Yeah.
• 3:40
  And
• 3:41
  how
• 3:41
  many
• 3:41
  people
• 3:41
  really
• 3:42
  were
• 3:42
  like.
• 3:42
  Oh,
• 3:43
  I
• 3:43
  didn't
• 3:43
  know
• 3:43
  you
• 3:43
  can
• 3:43
  do
• 3:43
  that.
• 3:44
  Oh,
• 3:44
  I
• 3:44
  think
• 3:45
  that's
• 3:45
  just
• 3:45
  like
• 3:45
  a.
• 3:46
  I
• 3:46
  think
• 3:46
  that's
• 3:46
  like
• 3:46
  a
• 3:47
  PR
• 3:47
  sizzle
• 3:47
  thing.
• 3:48
  I
• 3:48
  don't
• 3:48
  think.
• 3:49
  Yes,
• 3:49
  100%.
• 3:50
  And
• 3:50
  that's
• 3:50
  why
• 3:50
  I
• 3:50
  was
• 3:51
  going
• 3:51
  to
• 3:51
  say
• 3:51
  I'm
• 3:51
  leery
• 3:52
  of
• 3:52
  it.
• 3:52
  But
• 3:53
  when
• 3:54
  I
• 3:54
  think
• 3:54
  about
• 3:54
  it,
• 3:55
  it's
• 3:55
  a
• 3:56
  marketing
• 3:56
  investment
• 3:57
  that
• 3:57
  could
• 3:57
  potentially
• 3:58
  be
• 3:58
  offset
• 3:58
  by
• 3:59
  reducing
• 3:59
  the
• 3:59
  marketing
• 3:59
  budget
• 4:00
  in
• 4:00
  other
• 4:00
  places.
• 4:01
  So
• 4:01
  by
• 4:01
  that
• 4:02
  I
• 4:02
  mean
• 4:02
  instead
• 4:02
  of
• 4:02
  advertising
• 4:03
  Starbucks
• 4:03
  as
• 4:04
  the
• 4:04
  third
• 4:04
  place,
• 4:05
  just
• 4:05
  make
• 4:05
  it
• 4:05
  the
• 4:06
  third
• 4:06
  place
• 4:06
  and
• 4:06
  the
• 4:06
  story
• 4:07
  sells
• 4:07
  itself.
• 4:08
  So
• 4:08
  that's
• 4:08
  why
• 4:08
  I
• 4:08
  think
• 4:09
  it's
• 4:09
  kind
• 4:09
  of
• 4:09
  genius,
• 4:10
  especially
• 4:10
  if
• 4:10
  you
• 4:10
  can.
• 4:11
  I
• 4:11
  didn't
• 4:11
  even
• 4:11
  know
• 4:11
  you
• 4:11
  could
• 4:11
  already
• 4:11
  do
• 4:12
  that.
• 4:12
  So
• 4:12
  then
• 4:12
  the
• 4:12
  operational
• 4:13
  dynamics
• 4:13
  probably
• 4:14
  are
• 4:14
  a
• 4:14
  lot
• 4:14
  less
• 4:14
  than
• 4:14
  I
• 4:15
  was
• 4:15
  expecting.
• 4:16
  Although
• 4:16
  I
• 4:16
  imagine
• 4:16
  there
• 4:16
  is
• 4:17
  some
• 4:17
  increased
• 4:18
  cost
• 4:18
  or
• 4:18
  operational
• 4:19
  effect
• 4:19
  to
• 4:19
  this.
• 4:19
  But
• 4:20
  yeah,
• 4:21
  if
• 4:21
  people
• 4:22
  do
• 4:22
  it,
• 4:22
  I
• 4:22
  mean,
• 4:22
  that's
• 4:22
  the
• 4:23
  thing
• 4:23
  too.
• 4:23
  Like,
• 4:23
  I
• 4:24
  think
• 4:24
  this
• 4:25
  is
• 4:25
  so
• 4:25
  overblown
• 4:26
  of
• 4:26
  like.
• 4:27
  Well,
• 4:27
  you
• 4:27
  can,
• 4:28
  you
• 4:28
  could,
• 4:29
  you
• 4:29
  could
• 4:29
  force
• 4:29
  the
• 4:29
  question
• 4:30
  though,
• 4:30
  at
• 4:30
  the
• 4:30
  cashier.
• 4:30
  Would
• 4:30
  you
• 4:30
  like
• 4:31
  that
• 4:31
  in
• 4:31
  a
• 4:31
  ceramic
• 4:32
  cup
• 4:32
  or
• 4:32
  would
• 4:32
  you
• 4:32
  like
• 4:32
  that
• 4:33
  in
• 4:33
  a
• 4:33
  takeaway?
• 4:33
  Cup.
• 4:34
  And,
• 4:34
  and
• 4:34
  you
• 4:34
  know
• 4:34
  what?
• 4:35
  If
• 4:35
  I'm
• 4:35
  sitting
• 4:35
  there,
• 4:36
  I'm
• 4:36
  getting
• 4:36
  a
• 4:36
  ceramic
• 4:37
  cup.
• 4:37
  Yeah,
• 4:37
  for
• 4:37
  sure.
• 4:38
  I
• 4:38
  think
• 4:38
  I
• 4:38
  am.
• 4:38
  You
• 4:39
  should,
• 4:39
  you
• 4:39
  should
• 4:40
  do
• 4:40
  that
• 4:40
  now.
• 4:41
  A
• 4:41
  hundred
• 4:41
  percent.
• 4:42
  A
• 4:42
  hundred.
• 4:42
  Because
• 4:42
  my
• 4:42
  coffee
• 4:43
  tastes
• 4:43
  better
• 4:43
  in
• 4:44
  ceramics
• 4:44
  and
• 4:45
  everyone
• 4:45
  knows
• 4:45
  that.
• 4:46
  Come
• 4:46
  on.
• 4:47
  All
• 4:47
  right,
• 4:48
  but
• 4:48
  what
• 4:48
  do
• 4:48
  you
• 4:48
  think?
• 4:48
  What
• 4:48
  do
• 4:48
  you
• 4:48
  think?
• 4:48
  Are
• 4:49
  you
• 4:49
  going
• 4:49
  to
• 4:49
  throw
• 4:49
  shade
• 4:49
  on
• 4:50
  Mr.
• 4:50
  Nichol
• 4:50
  or
• 4:50
  are
• 4:50
  you
• 4:50
  going
• 4:51
  to
• 4:51
  jump
• 4:52
  on
• 4:52
  board
• 4:52
  this
• 4:52
  gravy
• 4:53
  train?
• 4:53
  What
• 4:53
  do
• 4:53
  you
• 4:53
  think?
• 4:53
  Listen,
• 4:54
  Brian
• 4:54
  Nichols
• 4:55
  for
• 4:56
  president,
• 4:56
  like
• 4:56
  that
• 4:57
  really
• 4:57
  has
• 4:57
  somehow
• 4:58
  found
• 4:58
  out.
• 4:59
  Well,
• 4:59
  I
• 4:59
  mean,
• 5:00
  look
• 5:00
  at
• 5:00
  what
• 5:00
  he's
• 5:00
  done.
• 5:01
  He's
• 5:01
  taken,
• 5:01
  you
• 5:01
  and
• 5:01
  I,
• 5:02
  we
• 5:02
  are
• 5:02
  on
• 5:02
  opposing
• 5:03
  sides
• 5:03
  of
• 5:03
  this
• 5:03
  argument
• 5:04
  and
• 5:04
  he's
• 5:04
  giving
• 5:05
  everybody
• 5:05
  a
• 5:06
  little
• 5:06
  bit
• 5:06
  of
• 5:06
  what
• 5:06
  they
• 5:07
  want,
• 5:07
  from
• 5:07
  the
• 5:07
  baristas
• 5:08
  to
• 5:08
  the
• 5:09
  customers.
• 5:09
  Like
• 5:10
  somehow
• 5:11
  you
• 5:11
  get
• 5:11
  your
• 5:11
  coffee
• 5:12
  house
• 5:12
  experience
• 5:12
  when
• 5:13
  you
• 5:13
  want
• 5:13
  it.
• 5:13
  Like
• 5:14
  everybody's
• 5:14
  going
• 5:14
  to
• 5:14
  be,
• 5:14
  everybody's
• 5:15
  lives
• 5:15
  are
• 5:15
  going
• 5:15
  to
• 5:15
  be
• 5:16
  better
• 5:16
  because
• 5:16
  those,
• 5:16
  the
• 5:17
  Starbucks
• 5:17
  are
• 5:17
  going
• 5:18
  to
• 5:18
  be
• 5:18
  hopefully
• 5:19
  nicer.
• 5:19
  And
• 5:20
  if
• 5:20
  they're
• 5:20
  really
• 5:20
  investing
• 5:21
  in
• 5:22
  this
• 5:22
  like
• 5:22
  coffee
• 5:23
  house
• 5:23
  experience,
• 5:24
  I
• 5:25
  get
• 5:25
  my
• 5:25
  drink
• 5:26
  made
• 5:26
  in
• 5:26
  less
• 5:27
  than
• 5:27
  four
• 5:27
  minutes,
• 5:27
  which
• 5:28
  is
• 5:28
  all
• 5:28
  that
• 5:28
  I
• 5:28
  want.
• 5:28
  I
• 5:29
  want
• 5:29
  faster
• 5:29
  operations.
• 5:30
  I
• 5:30
  want
• 5:30
  to
• 5:31
  get
• 5:31
  that
• 5:31
  drink
• 5:31
  as
• 5:31
  quickly
• 5:32
  as
• 5:32
  possible
• 5:33
  with
• 5:33
  as
• 5:33
  few
• 5:33
  hands
• 5:34
  touching
• 5:34
  it
• 5:34
  as
• 5:34
  possible.
• 5:35
  I
• 5:35
  just
• 5:35
  want
• 5:35
  the
• 5:35
  same
• 5:36
  consistent
• 5:36
  coffee
• 5:37
  all
• 5:37
  the
• 5:37
  time.
• 5:38
  And
• 5:38
  now
• 5:39
  dairy
• 5:39
  free
• 5:39
  customers
• 5:40
  get
• 5:40
  the
• 5:40
  10%
• 5:41
  price
• 5:41
  reduction
• 5:42
  in
• 5:42
  their
• 5:42
  coffee.
• 5:43
  Like,
• 5:43
  this
• 5:43
  is
• 5:43
  amazing.
• 5:44
  He's
• 5:44
  doing
• 5:44
  everything
• 5:45
  for
• 5:45
  everyone.
• 5:46
  And
• 5:46
  I
• 5:47
  do
• 5:47
  think,
• 5:47
  like
• 5:48
  you
• 5:48
  were
• 5:48
  talking
• 5:49
  about
• 5:49
  earlier,
• 5:49
  like,
• 5:50
  does
• 5:50
  he
• 5:50
  have
• 5:50
  the
• 5:51
  chops
• 5:51
  or
• 5:51
  is
• 5:52
  it
• 5:52
  possible
• 5:52
  to
• 5:53
  really
• 5:53
  start
• 5:53
  to
• 5:53
  get
• 5:54
  that,
• 5:54
  get
• 5:54
  to
• 5:54
  that
• 5:55
  under
• 5:55
  four
• 5:55
  minute
• 5:56
  process?
• 5:56
  And
• 5:57
  the
• 5:57
  guys
• 5:57
  from
• 5:57
  Chipotle,
• 5:58
  like,
• 5:58
  he
• 5:59
  knows
• 5:59
  how
• 5:59
  to
• 5:59
  automate
• 6:00
  things
• 6:00
  and
• 6:00
  cut
• 6:01
  out
• 6:01
  things
• 6:01
  that
• 6:01
  are
• 6:02
  not
• 6:02
  working
• 6:03
  or
• 6:03
  that
• 6:03
  are
• 6:03
  holding
• 6:03
  up
• 6:04
  the
• 6:04
  system.
• 6:04
  So
• 6:04
  I,
• 6:05
  I
• 6:05
  think
• 6:05
  that
• 6:06
  we'll,
• 6:06
  we'll
• 6:06
  see
• 6:07
  a
• 6:07
  lot
• 6:07
  of
• 6:07
  great
• 6:08
  things
• 6:08
  come
• 6:08
  if,
• 6:09
  if
• 6:09
  they
• 6:09
  can
• 6:09
  be
• 6:10
  successful
• 6:10
  in,
• 6:11
  in
• 6:11
  really
• 6:11
  giving
• 6:12
  every
• 6:12
  single
• 6:12
  person
• 6:13
  what
• 6:13
  they
• 6:13
  want
• 6:13
  in
• 6:13
  this
• 6:14
  situation.
• 6:14
  I
• 6:14
  don't
• 6:14
  care
• 6:14
  if
• 6:15
  you
• 6:15
  want,
• 6:15
  you
• 6:15
  can
• 6:15
  hang
• 6:15
  out
• 6:15
  at
• 6:15
  the
• 6:16
  Starbucks
• 6:16
  all
• 6:16
  you
• 6:16
  want.
• 6:17
  I
• 6:17
  just
• 6:17
  want
• 6:17
  my
• 6:17
  coffee
• 6:18
  fast.
• 6:18
  Yeah.
• 6:18
  And
• 6:19
  he,
• 6:19
  yeah,
• 6:19
  and
• 6:19
  he's
• 6:19
  already
• 6:19
  doing
• 6:20
  the
• 6:20
  four
• 6:20
  minute
• 6:20
  thing
• 6:20
  because
• 6:21
  making
• 6:21
  the
• 6:21
  customers
• 6:22
  pour
• 6:22
  in
• 6:22
  their
• 6:22
  own,
• 6:22
  you
• 6:23
  know,
• 6:23
  you
• 6:23
  know,
• 6:24
  dairy
• 6:24
  or
• 6:24
  dairy
• 6:25
  substitutes
• 6:25
  at
• 6:25
  the
• 6:25
  condiment
• 6:26
  bar,
• 6:26
  that
• 6:26
  definitely
• 6:27
  is
• 6:27
  going
• 6:27
  to
• 6:27
  speed
• 6:27
  up
• 6:28
  the
• 6:28
  process
• 6:28
  too
• 6:29
  as
• 6:29
  well.
• 6:29
  Also
• 6:30
  there's
• 6:30
  a
• 6:30
  couple
• 6:30
  other
• 6:30
  points
• 6:30
  that
• 6:31
  I
• 6:31
  love.
• 6:31
  The
• 6:31
  four
• 6:32
  minutes
• 6:32
  thing,
• 6:32
  just
• 6:32
  as
• 6:32
  a
• 6:32
  leadership
• 6:33
  thing,
• 6:33
  it's
• 6:33
  easy
• 6:33
  to
• 6:33
  rally
• 6:34
  around.
• 6:34
  It's,
• 6:34
  it's
• 6:35
  an
• 6:35
  easy
• 6:35
  metric
• 6:36
  to
• 6:36
  get
• 6:36
  everyone
• 6:36
  behind
• 6:37
  and
• 6:37
  it
• 6:37
  makes
• 6:38
  sense.
• 6:38
  So
• 6:38
  that
• 6:38
  from
• 6:38
  a
• 6:39
  leadership
• 6:39
  standpoint
• 6:39
  is
• 6:39
  really
• 6:40
  cool.
• 6:40
  And
• 6:40
  the
• 6:40
  other
• 6:40
  point
• 6:41
  too,
• 6:41
  he's
• 6:41
  also,
• 6:42
  we,
• 6:42
  we
• 6:42
  didn't
• 6:42
  talk
• 6:42
  about
• 6:42
  this
• 6:43
  in
• 6:43
  the
• 6:43
  headline,
• 6:43
  but
• 6:43
  he,
• 6:43
  he's,
• 6:44
  he
• 6:44
  simplified
• 6:45
  the
• 6:45
  product
• 6:45
  line.
• 6:45
  He
• 6:45
  got
• 6:45
  rid
• 6:46
  of
• 6:46
  the
• 6:46
  rumored
• 6:46
  to
• 6:47
  be
• 6:47
  dysentery
• 6:48
  driving
• 6:48
  oleato
• 6:49
  line.
• 6:49
  Right?
• 6:50
  So,
• 6:50
  like,
• 6:50
  yeah,
• 6:51
  that,
• 6:51
  that's
• 6:51
  now
• 6:52
  gone.
• 6:52
  And,
• 6:52
  and
• 6:53
  I
• 6:53
  don't
• 6:54
  miss
• 6:54
  that.
• 6:54
  I
• 6:54
  don't
• 6:54
  know
• 6:54
  about
• 6:55
  you,
• 6:55
  but
• 6:55
  I
• 6:55
  don't
• 6:55
  miss
• 6:55
  it.
• 6:56
  And
• 6:56
  so,
• 6:57
  especially
• 6:57
  given
• 6:57
  those
• 6:57
  rumors.
• 6:58
  So,
• 6:58
  like,
• 6:58
  you
• 6:58
  know,
• 6:58
  I
• 6:59
  think
• 6:59
  that
• 6:59
  makes
• 7:00
  sense.
• 7:00
  And
• 7:00
  then
• 7:00
  I
• 7:00
  wonder
• 7:01
  what
• 7:01
  further,
• 7:01
  you
• 7:01
  know,
• 7:02
  menu
• 7:02
  reductions
• 7:02
  are
• 7:02
  going
• 7:03
  to
• 7:03
  come
• 7:03
  out
• 7:03
  of
• 7:03
  this
• 7:03
  too,
• 7:04
  down
• 7:04
  the,
• 7:04
  down
• 7:04
  the
• 7:04
  road.
• 7:05
  So,
• 7:05
  so
• 7:05
  you're
• 7:05
  in,
• 7:06
  you're,
• 7:06
  you're
• 7:06
  liking
• 7:06
  this?
• 7:07
  Yeah,
• 7:07
  no,
• 7:07
  I
• 7:07
  think
• 7:08
  he
• 7:08
  did
• 7:08
  it.
• 7:08
  I
• 7:08
  think
• 7:08
  he's
• 7:08
  doing
• 7:09
  a
• 7:09
  great
• 7:09
  job.
• 7:09
  I
• 7:10
  think,
• 7:10
  I
• 7:10
  think
• 7:10
  he's
• 7:11
  coming
• 7:11
  in
• 7:11
  and
• 7:12
  doing
• 7:12
  exactly
• 7:13
  what
• 7:13
  he
• 7:14
  should
• 7:14
  be
• 7:14
  doing
• 7:14
  and
• 7:15
  what
• 7:15
  they
• 7:15
  brought
• 7:15
  him
• 7:16
  into
• 7:16
  to
• 7:16
  do.
• 7:17
  Really.
• 7:17
  Like,
• 7:18
  they,
• 7:18
  they,
• 7:18
  there's
• 7:19
  a
• 7:19
  reason
• 7:19
  they
• 7:19
  took
• 7:20
  him.
• 7:20
  And
• 7:20
  they're
• 7:20
  taking
• 7:20
  more
• 7:21
  people
• 7:21
  from
• 7:21
  Chipotle
• 7:22
  too,
• 7:22
  to
• 7:23
  kind
• 7:23
  of
• 7:23
  take
• 7:24
  the
• 7:24
  turnaround
• 7:24
  that
• 7:25
  that
• 7:25
  team
• 7:25
  was
• 7:26
  able
• 7:26
  to
• 7:26
  do
• 7:26
  for
• 7:26
  Chipotle
• 7:27
  and
• 7:27
  start
• 7:27
  doing
• 7:27
  it
• 7:27
  for
• 7:27
  Starbucks
• 7:28
  because
• 7:28
  they
• 7:28
  need
• 7:28
  it.
• 7:29
  Especially
• 7:29
  when
• 7:29
  you
• 7:29
  start
• 7:29
  talking
• 7:30
  about
• 7:30
  markets
• 7:30
  outside
• 7:31
  the
• 7:31
  U.S.
• 7:31
  like
• 7:31
  China,
• 7:32
  where
• 7:33
  they're
• 7:33
  just
• 7:33
  getting
• 7:33
  killed
• 7:34
  by
• 7:34
  Luckin
• 7:34
  Coffee
• 7:35
  and
• 7:35
  some
• 7:35
  of
• 7:35
  these
• 7:35
  other
• 7:36
  players
• 7:36
  that
• 7:36
  are
• 7:36
  coming
• 7:36
  in
• 7:37
  now
• 7:37
  to
• 7:37
  the
• 7:37
  US
• 7:38
  too.
• 7:38
  So
• 7:38
  they
• 7:38
  gotta
• 7:38
  get,
• 7:39
  they
• 7:39
  gotta
• 7:39
  get
• 7:40
  their,
• 7:40
  their
• 7:40
  poop
• 7:41
  in
• 7:41
  a
• 7:41
  group,
• 7:41
  you.
• 7:41
  Know,
• 7:42
  and,
• 7:42
  and
• 7:42
  the
• 7:42
  Olly
• 7:43
  Auto
• 7:43
  thing
• 7:43
  is
• 7:43
  a
• 7:43
  signal
• 7:44
  too,
• 7:44
  from
• 7:44
  a
• 7:44
  leadership
• 7:45
  standpoint,
• 7:45
  because
• 7:45
  that
• 7:45
  was
• 7:45
  Howard
• 7:46
  Schultz's
• 7:46
  baby.
• 7:46
  And
• 7:47
  he's
• 7:47
  basically
• 7:47
  like,
• 7:47
  nope,
• 7:48
  we're
• 7:48
  done.
• 7:49
  We're
• 7:49
  not
• 7:49
  doing
• 7:50
  that
• 7:50
  anymore.
• 7:50
  I
• 7:50
  don't
• 7:51
  care.
• 7:51
  And
• 7:51
  so
• 7:52
  that's,
• 7:52
  that's
• 7:52
  cool.
• 7:53
  I
• 7:53
  like
• 7:53
  it.
• 7:53
  I
• 7:53
  like
• 7:54
  it.
• 7:54
  All
• 7:54
  right,
• 7:54
  we'll
• 7:54
  see
• 7:54
  how
• 7:54
  it
• 7:54
  goes.
• 7:55
  Could
• 7:55
  be
• 7:55
  a
• 7:55
  big
• 7:56
  fanboy
• 7:56
  coming
• 7:56
  up
• 7:56
  here,
• 7:57
  Anne.
• 7:58
  He
• 7:59
  could
• 7:59
  be
• 7:59
  CEO
• 8:00
  of
• 8:00
  the
• 8:00
  year.
• 8:00
  Doug
• 8:01
  McMillan.
• 8:01
  You
• 8:01
  may.
• 8:01
  No,
• 8:02
  never,
• 8:02
  Never,
• 8:03
  never,
• 8:03
  never.
• 8:03
  That's
• 8:03
  never
• 8:04
  happening.
• 8:04
  And
• 8:04
  that's
• 8:05
  never
• 8:05
  going
• 8:05
  to
• 8:05
  happen.
• 8:06
  Never
• 8:06
  going
• 8:06
  to
• 8:06
  happen
• 8:08
  in
• 8:08
  my
• 8:08
  book,
• 8:09
  Anne.
• 8:09
  Okay,
• 8:10
  all
• 8:10
  right.