How does Starbucks make money?
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The Secret: What hidden asset does Starbucks hold from its app?
Billions of dollars customers preloaded onto cards and the app. Customers preload money before buying anything, giving Starbucks an interest-free pool of cash; some of it is never spent at all. Source: Starbucks 10-K (stored value card liability)
Why They Stay: Why do app users visit more often?
Stars, personalized offers and mobile order convenience. Rewards plus order-ahead make the routine frictionless, and the data fuels targeted offers. Source: Starbucks Rewards
Why They Leave: What drives regulars away?
Price creep and long mobile-order waits. When convenience breaks or prices climb, habits move to cheaper chains or home brewing. In 2024 Starbucks' new CEO made shorter waits, mobile-order fixes and clearer pricing the heart of its turnaround. Source: Starbucks – Message from Brian: Back to Starbucks (2024)