No surprise, like other chain catering enterprises, Starbucks China felt the adverse wind of the market last quarter.
7313 in the third quarter of the world, Starbucks accounted for 9% 82, but in China, it dropped by more than 40%.
We continued to increase in the last quarter despite adverse winds. Xiaoshidai noticed that Wang Jingying, chairman of Starbucks China, said at the subsequent performance meeting. six thousand
Before the release of the company’s plan to reshape the Chinese market
Starbucks’ performance in China declined significantly in the last quarter, which is largely related to the company’s existing stores in Shanghai and Beijing. Shanghai is the city with the most coffee shops in the world, and also the place with the most Starbucks coffee shops.
Wang Jingying revealed at the meeting that Starbucks has more than 940 stores in Shanghai. In the last quarter, about 2 / 3 of the epidemic was completely closed. In addition, about 1 / 3 of the stores in Beijing have been temporarily closed for nearly six weeks. Therefore, in the last quarter, Starbucks has more than 1300 stores to be temporarily closed.
The challenges posed by the epidemic are immediate. During the period, Starbucks’ net income in China decreased by 40% to US $544.5 million, compared with us $905.2 million in the same period last year. Affected by the 43% decrease in the same store transaction volume and the 1% decrease in the average customer unit price during the period, the same store sales decreased by 44%.
Previously, nearly half of its stores were located in Shanghai’s tims Coffee China. Its top management had reflected that if many stores were opened in one city, they would be greatly affected at the same time. Therefore, more stores would be distributed in the national market in the future. Although Starbucks did not disclose more information about the layout of its stores, it was certain that it had to become more agile.
Wang Jingying pointed out that at the end of last season, about 2000 Starbucks stores in nearly 50 cities had to comply with the epidemic prevention requirements and reduce the number of open seats or impose other restrictions; In addition, while some cities relaxed restrictions, other cities with new cases also implemented restrictions. “We continue to expect that the recovery of Starbucks in China will be non-linear.” She said.
She said that the epidemic has forced Starbucks to become more flexible, flexible and agile in China, and to do better in large-scale operation and execution. She believes that the benefits brought by Starbucks to employees and operation investment will become more and more obvious after the outbreak and in the next few years.
One example is the restoration of “fireworks” in Shanghai stores. Wang Jingying said that the company reopened more than 90% of its stores within one week after the resumption of business and market in Shanghai. Behind the scenes, Starbucks continued to deepen its cooperation with suppliers, owners and local authorities, simplified and adjusted the supply chain, and immediately positioned its business as accelerating profitable growth after the closure was completely lifted.
“I am glad to point out that after the restart of Shanghai in early June, our people flow and sales have improved immediately, and these two indicators have steadily improved month on month.” She said that since Shanghai partially lifted the restrictions on restaurant food at the end of June, the weekly same store sales of Starbucks improved to – 24% at the end of the quarter.
Main performance data of Starbucks China
As of the last quarter, Starbucks had opened 107 new stores in the Chinese market and operated 5761 stores in 228 cities. During the period
He said that some of the challenges are definitely related to the epidemic, while others are triggered by a lack of long-term vision. “Unfortunately, many of them were created by ourselves.” He said it is now clear what needs to be done to completely reshape the company and promote accelerated profitable growth globally.
Howard revealed that just last month, he convened more than 200 senior executives in Seattle to launch Starbucks’ remodeling and reform agenda. The main designer of the project is frank
Britt, Chief Strategic Officer of Starbucks. He described that the new strategy will support Starbucks to invest in significantly improving the experience of partners (employees), consumers and stores.
Although the details of the strategy will not be announced until next month’s Starbucks investor day, frank, who attended the meeting together, made some “spoilers”. According to its introduction, Starbucks will start from the retail business owned by the company’s core US market and gradually spread to the world. Specifically, Starbucks will give priority to five major strategic changes.
First of all, Starbucks will strive to further connect the company with new working methods and a series of modern tools to make it “truly a global enterprise”. Second, fully accept the need to fundamentally improve the partner experience. Third, Starbucks stores must be re conceived. Innovations such as new bar configuration, patented coffee technology and novel store type are the top priorities of the plan. Fourth, we will further develop ways to re-establish contact with consumers, and keep in mind that we must provide each consumer with a unique personalized experience that is unified across channels. Finally, Starbucks will develop from a listening company to a co created company.
“Ultimately, our goal is to become a brand-new company and set new and higher standards for our industry and overall business.” Frank said.
Howard Schultz, founder and interim CEO of Starbucks
As for the selection progress of “new coach”, Howard said that the list of candidates had been narrowed down to only a few people, and they were all interested in the new job. The most difficult problem in selecting a new CEO is to understand the company’s culture, values and guiding principles, in addition to experience and understanding of the market and the world.
Howard also reiterated that he would “stay” if necessary to ensure the soft landing of the new CEO in the company. “We will have a long immersion process, and then I will transition to the board of directors, so that I can guide and help the next CEO.” He said that the plan to reshape Starbucks has been synchronized with the candidates, and there is no misunderstanding. “The candidates are very excited and positive, and they are consistent with what we are doing, that is.”
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Starbucks is about to announce its restructuring plan, and the Chinese market “disregards the adverse wind”