Miscellaneous

At the UBS Global Consumer & Retail Conference yesterday, the Starbucks CFO noted it would continue with its diverse coffeehouse and CPG strategy, planning for 5% comps growth from more food attachment, tea and new product innovation. He also mentioned that they did not see any effect from QSR, C stores and possibly Dunkin’ at all when…

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Miscellaneous

The franchise industry is expected to continue its record growth throughout 2017. According to the Franchise Business Economic Outlook for 2017 released this week by the International Franchise Association, the industry is projected to grow by $35 billion to top out at $710 billion by the year-end. Speaking of the IFA, we want to congratulate…

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Ready to Drink: Boost or Bust for Same Store Sales?

Last year, sales of ready-to-drink coffee continued its meteoric rise—jumping 14 percent to $2.5 billion. It was the fourth straight year of double-digit growth. No Dunkin’ Donuts franchise owner would be surprised to learn that Starbucks controls 75 percent of the ready-to-drink coffee market. It’s why franchisees were generally pleased to hear the news that…

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Cold and Frothy

For as long as people could remember, cold frothy drinks came from the Baskin Robbins side of the house. But, it’s Baskin’s big brother that is bringing nitrogen-infused iced coffee to customers at Dunkin’ Donuts counters in several test markets. Nitro cold brew is the latest innovation sweeping the already hot iced coffee market. Dunkin’…

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Miscellaneous

It appears Starbucks has shut off beer and wine sales in 400 of their stores around the country, apparently ending their two-year experiment with drawing more customers to their shops for evening beverages. The company now plans to focus more of that effort on building the day part base and expanding their new premium Roasteries…

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Miscellaneous

Starbucks was making a lot of news for different reasons this week.  They held their investor day earlier this week and reported that new stores, products and connection worldwide continue to expand.  Further, they report that same store sales are up in the mid-single digit zone (4-6%) and that 50% of the drink mix was…

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Starbucks

Late yesterday, Starbucks announced that CEO Howard Schultz will step down as CEO next April to assume the role of Executive Chairman.  He will be replaced by current President & Chief Operating Officer Kevin Johnson.  Schultz has been the company’s CEO most recently since 2008, although he previously served as CEO from 1987 until 2000…

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Miscellaneous

Today may be known as Black Friday, but we’d note that this Saturday is Small Business Saturday, billed as a day to celebrate and support small businesses and all they do for their communities.  Let’s hope it’s a profitable celebration.  It was reported this week that Starbucks introduced another round of price increases for their…

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Competitor News

Starbucks reported their year-end results yesterday. The Americas Starbucks same store sales was plus 6%, with a plus 5% ticket and a plus 1% on traffic. The ticket/traffic measure was a bit distorted due to changes in Loyalty program POS procedures. The US AUV was approximately $1.6M and a store EBITDA margin of 27%. They…

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Competitor News

Starbucks also held its earnings call yesterday at 5:00 PM EST.  While it enjoyed +4% positive US and global same store sales, global transactions were flat and disappointing to the investment markets.  Their revenue of $5.2 billion was off target by $130 million, but still represented a 6.6% increase year over year.  Earlier in the…

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