Traditional recipes

Starbucks Sales Soar in China

Starbucks Sales Soar in China

The coffee chains profits have increased steadily in China despite it being a largely tea-consuming country

Even the Forbidden City needs a Starbucks.

It looks like no one in the world is safe from Starbucks fever.

Starbucks has seen a 30 percent year-over-year revenue jump in Asia and particularly good sales in China, according to the International Business Times. The chain’s growth in China may be because of the 500 new stores that opened in the past year across the Asia-Pacific region.

And while Starbucks’ main competition in the States and other countries may be the local coffee shop, in Asia, they have an entire tea culture to work against.“The very strong sales volumes prove that the coffee concept can succeed in traditional tea-drinking countries,” RJ Hottovy, the director of consumer equity research at Morningstar, Inc. told CNN Money. “It’s resonating very well with [inland] cities.”

But, Starbucks said that it still has tailored marketing in countries with high tea consumption, launching a line of tea in China in 2010 and creating green tea Frappuccinos using locally sourced beans. “The demographics they are targeting are younger and more affluent groups,” Hottovy told CNN Money.


Starbucks same-store sales boosted by U.S., China rebound shares soar

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Starbucks Q2: U.S. same-store sales rise 9%, returning to pre-pandemic levels

“I am very pleased with our progress to date in fiscal 2021, as our second quarter results demonstrated impressive momentum in the business with full sales recovery in the U.S. Our strong results validate our ability to adapt to changes in our environment and the needs of our customers,” said president and chief executive Kevin Johnson.

  • Comparable store sales growth of 9% in the U.S., demonstrating full sales recovery.
  • Comparable store sales growth of 91% in China, including reinstated vat benefit.
  • GAAP EPS .56 and non-GAAP EPS .62 reflecting meaningful margin improvement from prior quarter.
  • Active Starbucks Rewards membership in the U.S. up 18% year-over-year to 22.9 million.
  • Raising full-year fiscal 2021 revenue, margin and earnings per share guidance.

Starbucks’ net sales increased 11% to $6.7 billion, missing expectations of $6.8 billion. Global same-store sales rose 15% as the company lapped a decline of 10% from the year-ago period.

U.S. same-store sales rose 9%, returning to pre-pandemic levels. A year ago, same-store sales in Starbucks’ home market declined 3% during the U.S. lockdowns.

Customers this quarter purchased more expensive and bigger hot beverages and added food to their orders, bringing the average ticket up 21%. However, foot traffic remained down 10%.

Outside the U.S., same-store sales jumped 35% notwithstanding some European nations prolonging lockdowns. China is Starbucks’ second-largest market, and same-store sales there soared 91% as it faced comparisons with last year’s 50% plummet during the same period.

During its fiscal second quarter earnings report, Starbucks said that mobile order transactions now make up 26% of total orders at U.S. company-operated retail stores, GeekWire reported. That’s up from 18% in the year-ago quarter. Mobile order sales also doubled in China year-over-year.

GeekWire noted that the coffee chain has been promoting usage of its app for contactless payment throughout the global pandemic.


Starbucks Sales Slide But Show Signs of Recovery in China

Roz Brewer will depart Starbucks at the end of February.

Heather Haddon

Starbucks Corp. said Chief Operating Officer Roz Brewer will leave to lead another publicly traded company, marking the departure of a prominent Black executive who helped revive sales during the coronavirus pandemic and worked to diversify the coffee giant’s staff.

The announcement came as the company reported that sales fell during the holiday quarter but showed signs of recovery, particularly in China, even as the pandemic has necessitated continued store closures.

Starbucks said Ms. Brewer would depart at the end of February. Walgreens Boots Alliance Inc. is set to name Ms. Brewer its next chief executive, people familiar with the matter told The Wall Street Journal, setting her up to be the only Black woman leading a Fortune 500 company today.

Ms. Brewer, 58 years old, has been COO and a member of the board at Starbucks since 2017. She helped shift Starbucks toward a focus on to-go operations during the pandemic and has worked to diversify the company’s leadership.


Starbucks China sales soar 30 per cent

Starbucks China sales grew 30 per cent in the first quarter, overshadowing a lacklustre performance in the US company’s home market.

Same-store sales in the core Asian market rose a respectable 6 per cent, with the majority of the growth down to new store openings: 700 new Starbucks stores opened, taking its global network to 28,039.

US same-store sales rose by 2 per cent, driven by a similar increase in the average transaction value. Global revenue reach US$6 billion in the 13 weeks to December 31.

Neil Saunders, MD of GlobalData Retail, said the strong Chinese result “hides an underlying softness – although we would stop short of saying problem – in the rest of the business”.

“Barring last quarter – which was affected by one less week of trade than the prior year – Starbucks’ growth trajectory has slowed. This is most noticeable in the US, where both overall and comparable sales growth is trending lower,” said Saunders.

“This slowdown does not mean the domestic business is broken. Instead, it is a function of maturity and saturation which has made both adding new stores and driving performance from existing locations steadily more challenging. Given that this dynamic will only worsen over time, it raises a question as to how Starbucks intends to remedy the issue.”

Kevin Johnson, president and CEO of Starbucks, said the strategic acquisition of East China positioned the company to accelerate its growth in the key China market.

“Today, Starbucks has two powerful, independent but complementary engines driving our global growth, the US and China. Our work to streamline the company is sharpening our focus on our core operating priorities.”


Lowest Starbucks Prices

Considering the Starbucks culture in this country, it is a good thing America is one of the cheapest places across the globe to buy a latte. The prices went up 10 to 20 cents per drink in June 2018. The average price of a Starbucks drink in the U.S. is $2.75, but New York City is the most expensive location coming in at $3.25 for a tall cappuccino. And if you go for a decadent seasonal beverage with all the bells and whistles, it can run you over $5.

Starbucks prices are slightly higher in most English-speaking countries than in the U.S. The average cost of a Starbuck's beverage (a tall latte) in the U.K. is $2.88. A tall latte in Australia will cost just a dime more than in the U.S. Prices in Canada, New Zealand, and Ireland are also just a little higher.


Starbucks Corp. SBUX (U.S.: Nasdaq)

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Why Starbucks Prices Went Up as Coffee Beans Got Cheaper

Starbucks isn’t the place to go for cheap coffee. It is selling an experience, not a commodity.

That approach has been immensely successful, drawing in millions of customers and propelling Starbucks stock to stellar returns. But the company’s strategy has created an odd situation this summer: It has raised retail prices for much of the coffee brewed in its stores just as coffee prices on world commodities markets have fallen.

Consider that once, long ago, coffeehouses were the trading centers of world financial markets. If you wanted to know the price of any commodity, you could find it while sipping coffee in London. But this year, if your only information about commodity prices came from coffee sold at Starbucks stores, you might have to conclude that a bull market was underway.

The opposite is true, however. Coffee has been caught in a commodities downdraft that intensified briefly last week as China, a big commodities consumer, devalued its currency. The currencies of commodity producers like Malaysia, Indonesia, Russia, Colombia and Brazil have fallen for months now, along with oil, iron and steel. Coffee has taken one of the deepest dives.

Yet on July 6, Starbucks said that its costs were rising and that it was raising the price of much of its brewed coffee by 5 to 20 cents a cup.

At the Midtown Manhattan store I frequent, a “venti” cup — 20 ounces of joe — rose 10 cents to $2.55 before tax, while a “tall” 12-ounce cup stayed at $1.95. Tall cups rose in price in many other places, said Jim Olson, a spokesman. Prices for food remain unchanged. Over all, Starbucks said customer bills would increase 1 percent.

In a statement, Lisa Passe, a spokeswoman, said Starbucks tried to “balance the need to run our business profitably while continuing to provide value to our loyal customers and to attract new customers.”

It may be succeeding, though as a customer who happens to follow financial markets closely, I was startled by an apparent disconnect between world events and Starbucks decision-making. Why should I be paying more at Starbucks when coffee has been getting cheaper?

The price changes in the global coffee market have been breathtaking. The futures price for standard Arabica, the benchmark for premium coffee, peaked in October and fell 44 percent in world markets by July 6, the day of the Starbucks announcement. Some companies responded by lowering prices. J. M. Smucker announced in late June that it was cutting supermarket prices of its Folgers and Dunkin’ Donuts brands by an average of 6 percent. Starbucks left its packaged coffee unchanged, but decided to extract more revenue in its stores.

The company’s ability to raise prices has delighted the stock market. Starbucks shares have returned 5.4 percent since July 6, compared with a 1.3 percent return for the Standard & Poor’s 500-stock index. The company has outperformed over longer periods, too. Its shares returned 51 percent, including dividends, over the last year, compared with 9 percent for the index over five years, the return was 412 percent for Starbucks versus 115 percent for the index.

Starbucks has been growing rapidly and profitably, expanding while calibrating revenues and expenses. In a conference call with investors on July 23, Starbucks executives disclosed that they had already locked in the price for more than 80 percent of coffee supplies for 2016.

Hamish Smith, a commodities economist with Capital Economics in London, said in an interview that a company like Starbucks “can’t afford to be in a position where it will run out of coffee or will suddenly have to pay an unexpectedly high price for it.”

Starbucks’s financial statements indicate that the company tries to insulate itself from exposure to currency and commodity fluctuations through hedging and advance purchase agreements. Operating costs dropped in the fiscal year that ended last Sept. 28 because of lower commodity costs, mainly for coffee, the annual report said.

But when coffee prices drop unexpectedly, as they did this year, these advance strategies can have some negative short-term consequences: It’s likely that Starbucks paid more than the current spot market price for coffee stocks, which would be reflected in future financial statements.

That’s one reason Starbucks is on a different timetable than the broad market.

Another is that coffee accounts for less than 10 percent of Starbucks’s overall costs, Mr. Olson said. The premium Starbucks experience requires considerable spending on real estate and wages, and on extensive employee benefits, equipment, distribution and marketing, he said.

And there may be another factor. Howard Schultz, Starbucks’s chief executive, told investors during the conference call last month that “mobile payments now represent 20 percent of all in-store transactions in our U.S. stores, more than double the figure from only two years ago.” I use an iPhone app to pay these days: It’s easy to transfer money without noticing the cost.

Starbucks assumes that customers will consider the new prices to be reasonable, and maybe they are, if you considered past prices reasonable. In 1994, when Starbucks opened its Manhattan stores, it charged $1.25 for a small cup — then only eight ounces, known as a “short.” In inflation-adjusted dollars, that would be $2.01 today, yet a short cup in Manhattan costs only $1.85. You have to ask for one specifically, though a short is no longer listed on store menus. Still, if you are careful, you can spend less in real money than you did in 1994, even after the latest price adjustments.

Meanwhile, Starbucks is churning out profits. Even if its prices aren’t in sync with commodities markets, the stock market appreciates its timing.


The 36 Greatest Starbucks Drinks Of All Time

BECAUSE I SAID SO. And also because of their cult followings.

There's a lot to love about Starbucks&mdashtheir innovation, their ubiquitousness, their. more innovation. But at the end of the day, it's their heavy-hitters that matter, their cult favs. These are the ultimate Starbucks drinks.

After the success of the pumpkin cream cold brew, Starbucks released this Irish cream cold brew for the holidays. Some things, like Irish cream, shouldn't attempt to be replicated, so this is one of those drinks you only order once a year.

Not your typical pink drink, this guava passionfruit iced drink has tropical flavors and is mainly worth it for the Insta potential.

For those cold days you want something to keep you warm without keeping you up&mdasha hot chocolate is the easiest answer. Sure, you wouldn't normally dish out $5 for a simple cup of hot cocoa, but sometimes it really hits the spot.

If you aren't into the overwhelmingly sweet flavor of a straight-up Frapp, this is a good option because of the smoked butterscotch mixed with a classic latte.

Like a Girl Scout cookie in a drink, but with added cinnamon flavor. The first few sips of this latte are everything, with the foamy, cinnamon-y top layer that will satisfy your sweet tooth before it transitions into a more classic coffee bev.

A mocha from Starbucks is equal parts nostalgic and delicious, but this one has added cherry flavor and toppings that will help you mix it up every once in a while.

A oldie, but a goodie! Not to be extra, but this classic drink is truly one of the most refreshing drinks known to man. So if you haven't tried it already, please just go and live your best life. Thanks.

We all know that during the holidays, Starbucks ramps up its menu with at least five different winter-themed lattes. Honestly, we never know which one to pick, besides this classic. The mint and cocoa flavor combination definitely does not disappoint.

Dragonfruit isn't a typical flavor option, so the uniqueness alone of is a selling point for this drink. The mango adds even more tropical flavors, so it tastes good without being as filling or as heavy as a hot bev.

The almond milk and flat white goes great together, but if you're looking to taste honey in every sip this drink falls a liiittle short. Still&mdashsoul-warming.

The coconut milk adds that subtle sweet flavor and the mocha gives it a more classic taste.

Here's the thing&mdashthe London Fog is a super Canadian drink. And as you know, Canada never disappoints. This coffee-alternative is made with Earl Grey tea so you'll still get the foaminess of a latte, without being buzzed on a super high dosage of caffeine.

While this drink has been featured on the fan-run Starbucks Secret Menu site, the dirty chai (chai with a shot of espresso) is actually a pretty classic concept. It's perfect for when you want energy of a classic latte, but not necessarily the taste. Possibly the best end-of- summer coffee drink in the game.

This latte was introduced in a grouping of three (with the Almond Milk Honey Flat White and the Oat Milk Honey Latte) earlier this year, but it's by far the most superior of the group. It's light and creamy and tropical in the vaguest sense of the word&mdasha heart-warming delight.

Sometimes going simple is the move, and in that case the iced coffee is a no brainer. What with all of the latest cold brews and nitro brews, it's not the best tasting or strongest cold coffee available, but it's a classic nonetheless.

The mocha Frappuccino was probably everyone's first go-to order at Starbucks. It tastes like going to the mall as a middle schooler and regret, but in the best way possible. It's obviously on the sweeter side, so maybe isn't the best choice for someone looking for a more coffee-forward taste.

A happy medium for those who need gigantic pours of coffee every single day but aren't trying to give themselves ulcers prematurely. You know, lighter. Milder. Yum!

A little taste of Milan without, you know, having to make the trip. Thanks, @Starbucks!

It. it tastes like a creamsicle! Even though. even though it looks like that! Have you ever heard of anything more magical!?

The cloud caramel macchiato is a version of the beloved drink, with a delightful foamy topping that adds a special touch.

A gorgeous way to feel like you're doing something nice to your body. That's why this admittedly boring drink has stuck around for so long.

Shortly after the Great Starbucks Cold Brew Craze of 2015 came all the delicious variations on cold brew. Few of them stuck, but this one has remained through all the fads. Probably has something to do with the delicious marriage that is sweetened super cold foam and regular old cold brew. but who can really say?

Maybe it's the fact that this bad boy's seasonal that makes us want it that much more. Maybe it's the fact that literally all of our favorite flavors are included&mdashchocolate, vanilla, marshmallow, coffee. Maybe it's just, like, really, really good, and we don't have to defend it any more than we already have.

People go nuts for the signature look of the flat white, and don't even get them going on the taste. Do you know how many times people have posted their #FlatWhite to Instagram? Millions. Millions!

It packs all the punch of a good cold brew, but cuts the overt coffee flavor with a the addition of vanilla sweet cream.

This Refresher is an even lighter twist on the Pink Drink, making it the summer treat everyone goes back to year after year.

It feels safe to say the Unicorn frapp single-handedly kick-started the unicorn craze that ate all of our lives last year. It's gorgeous, it's sweet, it's sour&mdashwhat more could you want from a unicorn confection?

The hot matcha latte is great, but this one offers the same familar, caffeinated flavor but in a refreshing cold drink option.

A classic&mdashdeserving of its higher up spot on this list.

The PSL is a perfect specimen as is, but making a version that's cold brew is great for those that opt for an iced drink all year round. The cold cream on top tastes just like the pumpkjn spice you know and love.

There's something nostalgic about the caramel macchiato, no? About three Delish editors' eyes glazed over when I mentioned the drink: "I grew up on that stuff." It's just so good! It always has been!

The Pink Drink was popular long before die-hard keto followers made it diet-friendly (though that didn't hurt). It embraced Starbucks' addition of coconut milk and really leaned into the whole "do it for the 'gram" thing. A+ all around.

This one might seem like a lame choice since it's one of the more simple items on the Starbucks menu, but the caramel frappuccino is the perfect blank canvas for creative customizations. With a few add-ons and extras, you can make this drink all your own. and even make it taste like a Twix bar.

Just like the s'mores frapp, the salted caramel mocha is so crazy-good, there's no use in identifying why. All we know is its been a Starbucks mainstay for years&mdashand we're not mad about that.

This is here because it is my opinion that it is the best Starbucks drink in all of time and space and Starbucks history. Thank you for coming to my Ted Talk.

It would be criminal to end this list with anything else, no? The PSL is the ultimate perennial fav, the reason people quite literally swarm Starbucks' mentions starting August 1st every year. Sweet pumpkin, deep espresso, and a cinnamon spread? Sign. Us. Up. Every. Single. Time.


The 36 Greatest Starbucks Drinks Of All Time

BECAUSE I SAID SO. And also because of their cult followings.

There's a lot to love about Starbucks&mdashtheir innovation, their ubiquitousness, their. more innovation. But at the end of the day, it's their heavy-hitters that matter, their cult favs. These are the ultimate Starbucks drinks.

After the success of the pumpkin cream cold brew, Starbucks released this Irish cream cold brew for the holidays. Some things, like Irish cream, shouldn't attempt to be replicated, so this is one of those drinks you only order once a year.

Not your typical pink drink, this guava passionfruit iced drink has tropical flavors and is mainly worth it for the Insta potential.

For those cold days you want something to keep you warm without keeping you up&mdasha hot chocolate is the easiest answer. Sure, you wouldn't normally dish out $5 for a simple cup of hot cocoa, but sometimes it really hits the spot.

If you aren't into the overwhelmingly sweet flavor of a straight-up Frapp, this is a good option because of the smoked butterscotch mixed with a classic latte.

Like a Girl Scout cookie in a drink, but with added cinnamon flavor. The first few sips of this latte are everything, with the foamy, cinnamon-y top layer that will satisfy your sweet tooth before it transitions into a more classic coffee bev.

A mocha from Starbucks is equal parts nostalgic and delicious, but this one has added cherry flavor and toppings that will help you mix it up every once in a while.

A oldie, but a goodie! Not to be extra, but this classic drink is truly one of the most refreshing drinks known to man. So if you haven't tried it already, please just go and live your best life. Thanks.

We all know that during the holidays, Starbucks ramps up its menu with at least five different winter-themed lattes. Honestly, we never know which one to pick, besides this classic. The mint and cocoa flavor combination definitely does not disappoint.

Dragonfruit isn't a typical flavor option, so the uniqueness alone of is a selling point for this drink. The mango adds even more tropical flavors, so it tastes good without being as filling or as heavy as a hot bev.

The almond milk and flat white goes great together, but if you're looking to taste honey in every sip this drink falls a liiittle short. Still&mdashsoul-warming.

The coconut milk adds that subtle sweet flavor and the mocha gives it a more classic taste.

Here's the thing&mdashthe London Fog is a super Canadian drink. And as you know, Canada never disappoints. This coffee-alternative is made with Earl Grey tea so you'll still get the foaminess of a latte, without being buzzed on a super high dosage of caffeine.

While this drink has been featured on the fan-run Starbucks Secret Menu site, the dirty chai (chai with a shot of espresso) is actually a pretty classic concept. It's perfect for when you want energy of a classic latte, but not necessarily the taste. Possibly the best end-of- summer coffee drink in the game.

This latte was introduced in a grouping of three (with the Almond Milk Honey Flat White and the Oat Milk Honey Latte) earlier this year, but it's by far the most superior of the group. It's light and creamy and tropical in the vaguest sense of the word&mdasha heart-warming delight.

Sometimes going simple is the move, and in that case the iced coffee is a no brainer. What with all of the latest cold brews and nitro brews, it's not the best tasting or strongest cold coffee available, but it's a classic nonetheless.

The mocha Frappuccino was probably everyone's first go-to order at Starbucks. It tastes like going to the mall as a middle schooler and regret, but in the best way possible. It's obviously on the sweeter side, so maybe isn't the best choice for someone looking for a more coffee-forward taste.

A happy medium for those who need gigantic pours of coffee every single day but aren't trying to give themselves ulcers prematurely. You know, lighter. Milder. Yum!

A little taste of Milan without, you know, having to make the trip. Thanks, @Starbucks!

It. it tastes like a creamsicle! Even though. even though it looks like that! Have you ever heard of anything more magical!?

The cloud caramel macchiato is a version of the beloved drink, with a delightful foamy topping that adds a special touch.

A gorgeous way to feel like you're doing something nice to your body. That's why this admittedly boring drink has stuck around for so long.

Shortly after the Great Starbucks Cold Brew Craze of 2015 came all the delicious variations on cold brew. Few of them stuck, but this one has remained through all the fads. Probably has something to do with the delicious marriage that is sweetened super cold foam and regular old cold brew. but who can really say?

Maybe it's the fact that this bad boy's seasonal that makes us want it that much more. Maybe it's the fact that literally all of our favorite flavors are included&mdashchocolate, vanilla, marshmallow, coffee. Maybe it's just, like, really, really good, and we don't have to defend it any more than we already have.

People go nuts for the signature look of the flat white, and don't even get them going on the taste. Do you know how many times people have posted their #FlatWhite to Instagram? Millions. Millions!

It packs all the punch of a good cold brew, but cuts the overt coffee flavor with a the addition of vanilla sweet cream.

This Refresher is an even lighter twist on the Pink Drink, making it the summer treat everyone goes back to year after year.

It feels safe to say the Unicorn frapp single-handedly kick-started the unicorn craze that ate all of our lives last year. It's gorgeous, it's sweet, it's sour&mdashwhat more could you want from a unicorn confection?

The hot matcha latte is great, but this one offers the same familar, caffeinated flavor but in a refreshing cold drink option.

A classic&mdashdeserving of its higher up spot on this list.

The PSL is a perfect specimen as is, but making a version that's cold brew is great for those that opt for an iced drink all year round. The cold cream on top tastes just like the pumpkjn spice you know and love.

There's something nostalgic about the caramel macchiato, no? About three Delish editors' eyes glazed over when I mentioned the drink: "I grew up on that stuff." It's just so good! It always has been!

The Pink Drink was popular long before die-hard keto followers made it diet-friendly (though that didn't hurt). It embraced Starbucks' addition of coconut milk and really leaned into the whole "do it for the 'gram" thing. A+ all around.

This one might seem like a lame choice since it's one of the more simple items on the Starbucks menu, but the caramel frappuccino is the perfect blank canvas for creative customizations. With a few add-ons and extras, you can make this drink all your own. and even make it taste like a Twix bar.

Just like the s'mores frapp, the salted caramel mocha is so crazy-good, there's no use in identifying why. All we know is its been a Starbucks mainstay for years&mdashand we're not mad about that.

This is here because it is my opinion that it is the best Starbucks drink in all of time and space and Starbucks history. Thank you for coming to my Ted Talk.

It would be criminal to end this list with anything else, no? The PSL is the ultimate perennial fav, the reason people quite literally swarm Starbucks' mentions starting August 1st every year. Sweet pumpkin, deep espresso, and a cinnamon spread? Sign. Us. Up. Every. Single. Time.