Starbucks criticizes Ruixing for being short-sighted and short-sighted, and plans to expand the scope of Chinese takeout coffee service.

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Starbucks announces the latest results and is satisfied with the growth of same-store sales.

On April 25th, Starbucks reported second-quarter results, taking its share price to its highest level in the past year. Starbucks' total revenue for the quarter was $6.3 billion, up 4.4% from a year earlier and slightly below market expectations. In terms of profits attributable to the company, Starbucks made a slightly higher-than-expected net profit of $663 million in the quarter, compared with $660 million in the same period last year.

In releasing its quarterly results, Starbucks raised its full-year profit forecast, saying that profit margins in the Americas were expected to rise slightly from an earlier forecast.

"We are particularly satisfied with same-store sales growth in two major markets: the United States and China, and we continue to strengthen the development of large new stores with leading industry returns," Starbucks CEO Kevin Johnson (Kevin Johnson) said in an earnings statement.

New drinks and rising prices are the main drivers of growth

However, the data show that Starbucks' continued growth is not brought about by the increase in the number of orders, but mainly driven by higher prices. In the global market, the amount of individual orders by consumers increased by 3%. The data for the Chinese market is even higher, reaching 4%. In November last year, the prices of some Starbucks drinks in the Chinese market were raised by 1 yuan, and all stores adjusted uniformly.

In terms of the global market, Starbucks' same-store sales are up 3%. In the United States, Starbucks' biggest market, its same-store sales grew by 4%, the same rate as the previous quarter. During the quarter, Starbucks' takeout partnership with Uber Eats has expanded to 1900 stores in North America.

Revenue in the American market rose 8% from the same period last year to $4.3 billion. The financial report pointed out that this was driven by 686 new stores and 4% growth in same-store sales in the past year.

Revenue in the Asia-Pacific region rose 9% from the same period last year, while same-store sales in China rose 3%. Starbucks' performance in the Chinese market can be said to have improved compared with 1% growth in the previous quarter. As of March 31, Starbucks had 3789 stores in China, and in the past 12 months, Starbucks has opened 553 new stores in China, up 17% from a year earlier.

Strengthen Chinese takeout coffee service to compete with Ruixin

At the earnings analysis meeting, Kevin Johnson reiterated his aggressive plan to open stores in China: 600 new stores a year and 6000 by fiscal year 2022.

Rapidly expanding stores, takeout, new membership programs and same-store sales growth are seen as Starbucks' long-term competitive advantage in China. But Johnson also pointed out at the earnings analysis meeting that the Chinese market is in an environment of accelerating competition because of competitors' subsidies.

At a media conference in January, Luckin Coffee announced that he would add 2500 stores in China, reaching the goal of 4500 stores by the end of 2019-an average of one new store every 3.5 hours. Starbucks plans to open an average of one new store every 15 hours.

A few days ago, Luckin Coffee officially launched the listing plan to the United States, which was full of scenery for a moment. In the listing document, Luckin Coffee said it would continue to invest heavily in trade-in promotions and sales.

As for the strong attack of its rival Luckin Coffee, Starbucks said it was not worried about Lucky competing with it for the market, as Starbucks survey data show that Chinese consumers prefer Starbucks coffee and dining experience, which Ruixing does not have.

With regard to the development strategy of the Chinese market, Starbucks announced that four months after its launch, the Chinese takeout coffee service has covered 30 cities and 2100 stores, and plans to launch the coffee delivery service in 15 other cities in China before October this year. At that time, 3000 Chinese stores will provide take-out coffee service, and the coverage will be expanded to 50 cities to compete with Luckin Coffee, who is the main takeout service. But takeout costs are expected to shrink to profit margins.

"in China, we do not focus on short-term revenue, we prefer to continue the success in this market based on 20 years of history." Kevin Johnson, CEO of Starbucks, responded at the earnings conference that Starbucks will continue to focus on upgrading the consumer experience and the third space in China.

Kevin Johnson said the same in an interview with CNBC on Friday: "Lucky focuses on short-term earnings, and I don't think heavy discount competition is a sustainable business model." Johnson says competitors are short-sighted and short-sighted, while Starbucks is looking at long-term long-term growth.

Starbucks China launches 8 new high-looking products, but …

For the Chinese market, Starbucks has made more innovations specifically for the local market. On April 25, Starbucks launched eight special drinks specially developed for the Chinese market, featuring a series of ice flavors featuring "zero fat, no addition" and "non-tea and non-coffee", which landed in all stores and ™platforms in mainland China, becoming Starbucks resident drinks in China.

However, according to the recent online cai (lei) feedback, this new product of the ge play ice series has been complained: stale food + cough medicine.

Screenshot from Weibo

Screenshot from Weibo

Screenshot from Weibo

Screenshot from Weibo

Some netizens drank 8 cups in one breath, and finally suggested not to buy any of them.

Screenshot from Weibo

I don't know if everyone has had a drink. How does it feel?

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