CLAIM #53149 · Starbucks Corporation (SBUX) · 2024Q3 earnings call · Jul 30, 2024

“We believe these enhancements to the digital experience, coupled with more effortless ordering will continue to drive Starbucks Rewards membership over time with customers increasing frequency and spend.”

Laxman Narasimhan · CEO

How to check this claim

Look at: Starbucks Rewards active membership count (US), as disclosed in quarterly earnings materials

It came true if: 90-day active Starbucks Rewards membership higher than the figure reported for the quarter ended closest to 2024-07-30

Where: Starbucks quarterly earnings release / investor presentation (US Rewards membership metric)

Knowable after: 2026-07-30

In context

“perience remains a sizable opportunity across our entire store portfolio. Moving on to digital. As part of our action plan, we made continued improvements to our Starbucks app, including wait time algorithm enhancements that have improved order-ready accuracy by nearly 50 percentage points. This combined with in-app offers helped drive a 10% year-over-year growth in Mobile Order & Pay revenue, a 7% year-over-year increase in MOP transactions. Looking deeper, our data shows that one in four non-Starbucks Rewards members want the ability to use Mobile Order & Pay. Nearly 80% of those customers don't want to join a Rewards program or create an account to do it. In response, we opened MOP for all to provide those customers the convenience they seek, while removing perceived barriers to entry. We believe these enhancements to the digital experience, coupled with more effortless ordering will continue to drive Starbucks Rewards membership over time with customers increasing frequency and spend. Once customers are in our digital ecosystem, they're more likely to remain engaged across channels and drive greater lifetime value. In summary, our plans are beginning to work. We are recovering our brand from its perceptions. We're rebuilding the operational foundation of our stores and supply-chain. We're reducing costs to support investments. We're sustaining partner experience improvements and we're working to make the Starbucks experience worth it every time. While it's early days, I'm confident in the trajectory of our US business and the operational improvements we're making. And I'm reassured by the impact our work is expected to deliver in FY 2025 and beyond. Looking outside the US, we continue to see weakness in parts of our international business and strength in others. Headwi”

Verify independently

SEC filings for SBUX ↗ · Quote is verbatim from the 2024Q3 earnings call.