Starbucks (SBUX) 2024 dbAccess Global Consumer Conference summary

Near-term headwinds and recovery actions

• Facing headwinds from Middle East impacts, slower China recovery, and cautious US consumers, especially among occasional customers.

• Most headwinds are seen as transitory, with action plans showing early positive results in Q3 and Q4.

• Product innovation, such as Summer Berry Refreshers, and targeted app offers are driving afternoon growth and rewards program engagement.

• Efficiency efforts and integrated marketing are supporting sequential revenue growth in line with guidance.

Value proposition and pricing strategy

• Premium value perception remains strong among loyal customers, with measured pricing actions and premium product trade-ups.

• New app features and targeted offers aim to enhance value perception for both rewards and non-rewards customers.

• Revenue management systems and digital storyboards will enable more personalized, location- and daypart-specific offers.

• Gen Z and millennials seek more frequent product news and broader offerings, influencing innovation and marketing.

Product and digital innovation

• Focus on cold beverages, plant-based options, and functional drinks to attract younger, afternoon-skewing customers.

• Food innovation includes new muffins and sandwiches, leveraging scale for cost efficiency.

• Digital ecosystem and rewards program drive higher frequency and spend, with significant growth potential as app access expands.

• Opening Mobile Order & Pay (MOP) to all customers is expected to generate $1 billion incremental revenue over three years.