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Despite market fears over the possibility of a recession, Starbucks CEO Kevin Johnson told CNBC on Monday that his clients were telling a different story.
The coffee chain is more in tune with its customers than ever before, thanks to investments in digital customer relationships, and the company is delivering results, he said.
The Starbucks loyalty program, which accounts for 42% of sales, now has more than 17 million active users who regularly use its mobile app, Johnson said.
"We have seen no sign of slowing down in the United States, but we know it is done in cycles," he said at an assembly with "Jim Cramer of Mad Money," but for now we are shooting at it. all the cylinders and [the] the consumer seems to be doing well. "
Starbucks had sales of $ 6.8 billion in its last quarter, up more than 8% from the same period last year. In the United States, same-store sales increased by 7% and, with trade tensions at boiling levels between major world economies, by 6% in China. Management has raised the forecast for the entire year to $ 26.4 billion.
Mr Johnson, who became head of the Seattle-based coffee franchise in 2017, said that adding new cold beer-based beverages and improving the customer experience in-store and in a digital ecosystem were essential. Technology has enabled the company to automate staff schedules, improve partner engagement and achieve a record of customer connections, he added.
"The company is on the path where we are now accelerating the pace of innovation in a way that we believe is relevant to our customers, inspiring to our partners and certainly significant to our business." said Johnson, who is officially a veteran of the technology. Microsoft and Juniper Networks.
In the area of innovation in the beverage industry, Starbucks announced Tuesday the launch of Pumpkin Cream Cold Beer on its fall menu. This is the first coffee pumpkin drink since the spice milk drink came on the market nearly two decades ago, CNBC said.
Coffee drinkers tend to consume the hot drink in the morning to prepare for the workday, but cold caffeinated drinks prepared for 24 hours in cold water have opened up new possibilities beyond midday. Starbucks was able to project a change in cold drinks and found that it behaved well, especially in the millennia, he said. The CEO expects his cold nitro breweries, which contain nitrogen to make it sweeter and creamier, to be available in all his cafés by the end of September.
"The combination of our cold beer – nitro beer and our refreshing beverages – has helped to unblock the afternoon," Johnson said. "In fact, just over half of our drinks are cold drinks."
Johnson is also committed to looking beyond the benefits it provides investors to determine the value of Starbucks. He joined nearly 200 other CEOs to sign a roundtable pact of companies redefining "the goal of a company", which is to include customers, employees, suppliers and the community as a whole. stakeholders.
Johnson congratulated former CEO Howard Schultz and other former leaders for developing a "goal that goes far beyond the pursuit of profit".
"It means we will invest and take care of our partners, whether it's health care or academic success," he said. "We have just exceeded … the goal of hiring 25,000 veterans or spouses of military." We surpassed this goal 3 years earlier and are now on the verge of recruiting 5,000 veterans a year. "
"All of these things you know contribute to what we do to achieve a goal that goes beyond the pursuit of profit."
After about three years of side trading, Starbucks shares have risen nearly 50% this year. The stock climbed 1.9% to close at $ 96.50 on Monday.
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