Emily Flippen, CFA | Source | Senior Investment Analyst & Lead Advisor at The Motley Fool

Date: 9/23/22
Outlet: Seattle Times
Article Title: Starbucks adapts to market changes with focus on convenience
Quotes:
- Starbucks is adapting to different consumer behaviors, which changed in part due to COVID-19, said Motley Fool analyst Emily Flippen. Instead of sitting in a coffee shop during the high-infection levels of the pandemic, people favored ordering at drive-thrus more than before.
- Starbucks “is responding to a desire of the consumer that is to be a bit faster and a bit less formal,” Flippen said. The challenge after the pivot, she said, is to maintain Starbucks as a premium brand. Starbucks drinks are more expensive than those from McDonald’s and Dunkin’ Donuts, but people are willing to pay more for the experience, Flippen said.
- “If they feel like the Starbucks experience is being diluted by whichever way they’re engaging with the company, through drive-thru, pickup, then they’re going to be more price sensitive,” Flippen said.
- In the midst of a reinvention rollout, Starbucks sought an executive who could execute the plan rather than someone who would pitch innovative ideas, Flippen said. The pace of this leadership transition is slow, said Flippen. It is “an extension of Howard Schultz 2.0,” she added.