Howard Schultz: Sales of Pumpkin Spice Latte have been 'unbelievable'

"Pumpkin Spice Latte was a notable success, growing 44% over last year," Starbucks CEO Howard Schultz told analysts [full transcript] during this week's earnings call. He said:

I think what really surprised us during the quarter, was Pumpkin Spice Latte, which is a product we've had many years before, to have a 40% increase is just an unbelievable number. And I think all of the questions and perhaps the cynics of a couple of years ago that believed that when McDonald's and Dunkin' Donuts entered the space, they were going to have a destructive effect on Starbucks has proven to be not only not the case, but I think the more money that's been spent against the category has helped Starbucks create awareness, new customers and obviously distance between them and us.

SCHULTZ ALSO SAID:

* "Looking ahead we plan to open at least 200 net stores in the U.S. in 2012 and to remodel approximately 1,700 existing stores, that's the most stores we've ever remodeled in a year."

* Blonde roast will be available in whole bean and ground starting in January in retail stores and through our grocery channels. Blonde will also be brewed in stores, available in K-Cup portion packs in January and as a Starbucks VIA variety.

* In fiscal 2011, over $1.1 billion in purchases was paid for by the use of the Starbucks Card. And today, a Starbucks Card is used in 1 in every 4 transactions.

* The NYC Times Square store is "a roaring financial success delivering over twice the revenue on a 70% increase in traffic compared to last year."

Go ahead and discuss Schultz's earnings comments, or anything else Starbucks-related in this OPEN THREAD.

Comments

[TheRootinator]

It's great that we're doing so well financially! Two stores in my district have gotten their refurbishment jobs done, and the new store designs are really top notch. Our store is also getting some new (much needed) equipment for Christmas.

Great time to be a shareholder, I'd assume. Does anybody have Blonde Roast in their store yet?

[yolanda]

probably because there's lots of extra pumpkin spice in every drink because all of the real pumps don't work. mmm extra sugar.

[Starbucks Gossip webmaster]

How LOU REED behaves at Starbucks: From the @scharpling Twitter feed:

* You will never guess who walked into this Starbucks and sat down three feet away from me.
2 Nov

* Not joking. Lou Reed is at this Starbucks.

* Lou is by himself. He has an iPad with him and is typing on it VERY angrily. Large ice coffee and a scone in front of him. #LouAtStarbucks

* He just shouted over to a barista that he can't log on. He wants to know 'what the goddamn password is'.

* The barista showed him how to log in (you don't need a password!). He said 'thanks, hon' and put his shades back on.

* He just moved his iPad and knocked his scone on the floor. Didn't phase him though - he slid it w/ his foot under the table.

* Oh no. He just reached into his satchel and pulled out a sandwich, violating my 'don't eat food from other places' rule!

* He's looking at me. And he doesn't look happy. I'm pretending I'm looking at someone behind him. I am scared.

* Thank god some fan just came up to him and started talking to him. He's now channeling his anger at this dope than me.<

* GUY: How did they tear the flesh off your face for the 'No Money Down' video? LOU REED: It was a robot, asshole.

* He just came back with another scone (blueberry?). Sitting back down. He looked at me and shook his head derisively.

* Lou just took a call. He's yelling at someone (Doug Yule?) and waved his arm around, spilling his coffee onto his scone.

* The barista just came over and helped him clean up. His iPad is safe, thankfully. And she brought him another scone.

* He accidentally set his iPad on the scone.

* And he just got up and walked out. He gave the British middle finger on the way through the door.

[Murbar]

Who is Lou Reed and why should i care??????

[Rock fan]

Murbar -- You don't know who Lou Reed is? Do you live on Earth?

[Starbucks Gossip webmaster]

Ha -- Craig Ferguson had a joke about the infamous Starbucks Masturbator on his Friday night show. Meanwhile, watch for an update on this guy to be posted on Starbucks Gossip in a day or two.

[ash_sk8s]

I have no idea who Lou Reed is either...

[TheRootinator]

Yolanda has a point. Those pumps that come with the Pumpkin Spice syrup are total crap.

Corporate, I know you're reading this. Change that pump for next year. At least the ones for Caramel Brulee work well.

[morningbecomes]

@Yolanda- true story!
I even called the quality assurance line to report it. I said "We are having a problem with our pumpkin spice pumps." The woman from QA said she was going to transfer me to Partner Resources. what......

[Martha]

What have been the responses for the new SF Mocha? I personally really like it, but I'm not sure if that's because the previous was sooooo nasty. :)

[.]

I really think they're trying to discourage us from calling things like that in. It just becomes a waste of the time I don't have in the first place...15-20 minutes for a single incident report!? Why can't we just email or fax them and then let the, call us back with questions?

[spence]

We put our pumpkin spice in a container with a mocha pump on top. It works every time. Naturally, we labeled it "pumpkin spice" should qasa come in.

[Starbucks Gossip webmaster]

For those unfamiliar with LOU REED, here is some background on the famous musician.

[otterinthewater]

@spence

A lovely idea! Have you had QASA come by and see that? I'd like to steal it, but I want to make sure they'd not ding us for it- even with the label.

[Blonde Bean]

How about QASA lets make that a thread 4 managers fired in my area for scoring below 80...no pressure though
My RDO has everyone in their sights QASA QASA QASA sick of it sick of it

[Clark Kent]

Use the Caramel Brule pump. Works like a charm, and measures out the same amount, too. I swear, almost 10 years with this company and EVERY SINGLE YEAR the PSL pumps work half-assed. I just don't understand why it's always, always an issue with these particular pumps, every year. *shrug*

[JavaMaster]

Regarding the Pumpkin Spice pumps....cut one end of the tube so that it is level, not slanted. Insert that end into the pump and you are good to go. No issues.

[LadyKathryn]

Does anyone know when they'll start selling the Caramel Brulee? My local store has the other holiday drinks, but not that one...I assume they're releasing it a bit later. Just curious!

[Coffee Soldier]

Next Tuesday the Carmel Brulee with be out...15th

[James Connolly]

Use a pair of scissors and cut off one of the diagonal tips on the pumpkin spice pump straws and put that end into pump. Doing that fixes most issues with the pump.

[Lobstertrapper]

Wow since the company is doing so amazing and all of that I suppose he'll go back to the days when shifts got $500 for Christmas bonuses this year and stop raising the healthcare insurance and put SIP back to the way it was and quite the micromanaging business...Oh that's right, Howard doesn't believe in that stuff anymore only profit--that was in "Pour your heart into it" not "Onward"

[Waltie]

"How about QASA lets make that a thread 4 managers fired in my area for scoring below 80"

A score in the 70s or below is pretty bad.

[yourmothersfortune]

anyone know about a bonus this year for the partners?

[Waltie]

If there was talk about a bonus for the partners, you wouldn't have to ask about it. You'd already know about it.

[Ian]

A score of anything less than 90 on QASA is really bad. It is impossible to fail if you follow standards put forth.

[TimeToGO]

It confuses me as to why QASA matters so much. I was at Starbucks during the 'dark times' of the recession and I just blew it off. I think focusing on mopping is quite ridiculous.

[Waltie]

You don't understand the importance of cleanliness and food safety in an establishment that sells sandwiches, pastries, and beverages that people eat and drink?

Long story short, if you're a manager in a store that consistently fails QASA, you could cause your customers to become very sick... or worse.

[Lobstertrapper]

Ha Ha Waltie...Starbucks allows baristas with staph to work on the line. No policy on it only Hep B. And the Florida Health Dept. said that was A-OK. DM seemed fine with it too as long as we didn't have a QASA visit that day. It is all about the PR baby...

[MOG]

Any plans for a SF PSL??? As a diabetic, I would love it! The SF vanilla and caramel are pretty good, but still no mocha?

[Yupp.]

SFM is now part of our core sauces.

[CoCo]

Comment 1: PSL pumps get clogged easily when sit overnight...pump hot water thru it and it should be good.

Comment 2: How can we be expected to be QASA ready at all times considering bare minimum staffing....they always manage to come right after peak when the store looks like a bomb went off and we needed one more person just to keep up...what we need is a "bar back" scheduled to do nothing but clean, do lobby slides, check trashes and stock so we can provide fast, legendary service to keep those Pumpkin Spice Lattes crankin'...

Comment 3: Are the RSU's granted every year?

Comment 4: Despite all the BS we have to put up with I love my job and think Starbucks is a great place to work!!

[Ian]

@CoCo,

Could improper deployment be a cause? It has been my experience that the shift should be summoned for assistance with those things during rushes; floating around where needed.

[Waltie]

Also... cleaning as you go is a big help. Don't wait until after the rush to clean a spill or date that soy you just opened. Do it now.

[R1]

Deployment breaks down when you are inadequately staffed. Line to door. 15 cups in queue. Typical Sat.am. R1 (me) is supposed to keep those 30 minute numbers rolling, pastries and sandwiches, brew coffee every 8 minutes grinding wholebean etc. You all know how it goes. Condiment bar,slides,restrooms,keeping necessary items stocked, these are the times when it feels like it's every barista for him or herself. The stuff like dirty tables, condiment bar and bathrooms are a huge part of customer experience but it just seems like everything is a priority at once and there is only so much 3 people can do. Then of course one of them is scheduled for a 30 in the middle of this. The crappiest part is you look at your numbers, feel like you've killed yourself, and they're just not too good. I'm super fast ringing while still connecting with customers but there is only so much 3 people can do at once. You can't ring fast enough, the numbers aren't good enough so there you are again in a week or two with 3 people again. I'm not a shift. I don't completely understand what perfect deployment would be in a situation like this, but the shift usually double bars and rings and floats when the cup queue gets shorter. But it doesn't. There's got to be a better way. Any suggestions for for the R1 with little say in how things are done would be hugely appreciated.

[dontmindme]

I never understand all the talk about bare minimum staffing. I don't see that at a single store in my area. We also just got a 98 on our qasa audit! Wheeeee!

[nematode]

I have a question ? we just got the new partner handbook and i was actually reading it on page 63 it says as a partner we get a markout of tazo concentrate (brand new handbook) well how do you mark that out theres no bar code or the sku doesn't work. Anyone?

[TheRootinator]

nematode, apparently the book refers to the old Tazo Chai we used to sell in stores. Nowadays it can be found at Walmart, Target, or some of our licensed stores. I guess somebody just cut-and-pasted that list from the old handbook without looking it over.

Unless there's a way to markout chai.

[Facts]

People were just panicked that it would quickly disappear like last years when the geniuses only produced enough for a month.

[Facts]

@spense genius, since it's not the right amount of syrup.

[Facts]

@Clark Kent Holy lack of knowledge batman! The pumpkin spice and caramel brule are vastly different amounts.