Down to Business English Coffee Talk: Starbucks CEO turnover and Luckin's expansion
Dec 11, 2024
The coffee industry is buzzing with change! Starbucks faces a whirlwind of CEO turnover while battling to maintain its position against Luckin Coffee, China's rising star. The hosts dive into the history of Starbucks' leadership and the impact of its mobile app. Luckin's ambitious plans to invade the US market by 2025 are also on the table. With competition heating up, the discussion explores how Luckin could steal Starbucks' loyal customers and what it means for the global coffee showdown.
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Starbucks' Early Days
- Starbucks initially sold only high-end coffee beans and equipment, not brewed coffee.
- Howard Schultz, the operations manager, bought Starbucks in 1987 and transformed it into the coffee shop chain we know today.
Rapid Expansion and Its Consequences
- Starbucks experienced rapid expansion under Orin Smith, growing from 45 to over 9,000 stores globally between 2000 and 2005.
- This rapid growth eventually led to significant challenges for the company by 2008.
Unintended Consequences of the Mobile App
- Kevin Johnson focused on streamlining operations and developing the Starbucks mobile app.
- This unintentionally led to decreased in-store sales due to complex mobile orders overwhelming baristas.