Episode Transcript
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Speaker 1 (00:00):
I'm a coffee addict. I'm pretty sure my blood type
is folders, so I'm always drinking it. But apparently this
is it like an old geezer drink. Is that what
it's coming down to.
Speaker 2 (00:11):
Well, if you're drinking it's yeah black or putting a
little bit cream in, that's apparently an old geezer drink.
But there is a real fight going on right now
between the coffee places, you know, like Starbucks and Duncan,
in fast food places and McDonald's talk about Wendy's.
Speaker 3 (00:27):
This is the new battle of the beverages.
Speaker 2 (00:29):
And it comes as Starbucks has been suffering of late
that they are reporting again the sales were down in
the last quarter and chains are putting a ton of
money and to stealing their business and jumping into it
new drinks. Like Duncan, they've got sprint of Carpenter advertising.
Speaker 3 (00:45):
I think could know what you're really craving, a strawberry
daydream refresher with the Queen of Espresso herself there.
Speaker 2 (00:54):
So at Starbucks they're doing the blended strawberry Macha frappuccino.
Speaker 3 (00:59):
That's one of theirs.
Speaker 2 (00:59):
McDonald says they've got some new ones coming out in
a few weeks, Toasted Vanilla, Frepe, Strawberry, Watermelon, Refresher, Creamy Vanilla, Coldbrew,
Taco Bell. They've made up their own term. They're coming
out with a line of refrescas and they're hoping that
they're going to reach five billion dollars in beverage sales
by twenty thirty. Wendy's has a new lineup.
Speaker 3 (01:19):
So.
Speaker 2 (01:20):
Sarah Senator is a senior restaurant analyst.
Speaker 3 (01:22):
At Bank of America.
Speaker 2 (01:24):
She says, this is really what these restaurant chains are
now focusing in on.
Speaker 4 (01:27):
What you're seeing is that these younger consumers, you know,
millennials more than gen X, gen Z's more than millennials,
really do like that customization. So even companies for whom
you know, beverages may historically not have been their core
offering do want to participate in that.
Speaker 2 (01:43):
So, she says, a younger crowd they want to feel
like they're getting an elevated experience, not just a black coffee,
but they want the caffeine. They studies have shown their
staying away from alcohol more. They want to be able
to customize it. And the stores like this because it
gets people coming in and ordering the drinks outside of
regular meal times and it gets them in.
Speaker 4 (02:03):
You might have a very heavy breakfast business or might
be doing really well at lunch, but then you have
this kind of lull in the afternoon. And that's really
what these beverages also address, which is how do you
get your assets to be used and how do you
get customers coming in throughout the day. And that's where
beverages really play an important role as well.
Speaker 2 (02:22):
And so it comes to Starbucks is having this slump
and CEO says they're going to revamp their stores to
bring back the old coffee house vibe to get you
to stick around in comfortable seats and pull out your
laptop or have a meeting or meet with a friend,
things that they got away from in the last decade
or so when it was more about all mobile and
quickly going and grabbing what you want.
Speaker 3 (02:40):
People don't want that anymore. They're saying, you know, if I'm.
Speaker 2 (02:42):
Just getting a black coffee, I can do that at
home instead of just quickly through the drive through. So
they want the experience to be there again and to
bring people back in. But they're trying things. They're going
to do a protein foam for the top of drinks
and other things, and the CEO at Starbucks says they
can do a lot with that found of coffee.
Speaker 3 (03:00):
To grow from there.
Speaker 2 (03:01):
We need to do is be great at our core
items and then fere out how we innovate off the core.
They've brought back now that accessory bar, you know where
you can put the cinnamon on top things that went
away during the pandemic, and only recently they said, okay,
we've got to bring that back again to make it
more personal and a better experience. So this is the
battle right now, and all the other chains are getting
in on it too.
Speaker 1 (03:22):
I would love to see actually a survey of fast
food places, non coffee exclusive. I'm talking to McDonald's and
Wendy's and Burger Kinges and Someway a poll of the
best coffee, because honestly, I put McDonald's at the time.
Speaker 2 (03:36):
I think that's pretty good. It's kind of acidic, I
feel like, but it's good. But again that the crowd
that they're going to is not you and me getting
a black coffee. They're getting the you know, the strawberry
watermelon refresher, creamy vanilla cold brew and the actual just
the base of coffee. They're not even focused on that.
It's all these really creative drinks they're.
Speaker 1 (03:57):
Going to have to steal from Starbucks in order to
make that work these other places.
Speaker 3 (04:00):
That's what they're trying to do.
Speaker 2 (04:02):
As Starbucks numbers are down, they're saying, hey, we can
do it cheaper and you can come over here.
Speaker 1 (04:05):
You already used to paying seven dollars for a cup
of coffee in there with the froufoo on it, and
you know the markup on like you know, a coke
at McDonald's it's eighteen cents worth of chemicals, they charge
you two ninety nine for it. And I'm thinking, wow,
if that's the kind of fast food markup. As much
as coffee products can cost, these things are going to
(04:26):
have to be expensive.
Speaker 2 (04:27):
Well yeah, and I think the customer base has become
somewhat accustomed to it, even though they want to bring
the crowd in. The CEO of Starbucks is saying he's
not ruling out the prices are going to go up
next year just based on economic factors. But you know
they're doing things now like writing little messages on the
cups and writing by hand. They want to make it
feel more personal and kind of back to the roots
(04:48):
of it, and they think that'll get people in if
they have the experience in there. They're closing down Starbucks
is are going to close all of their mobile order
only stores that they opened up during the pandemic. When
that's what we wanted at that time. Their CEO, who
is not their CEO now, had said that was the future,
that we would do everything as mobile ordering. Now they're saying, WHOA,
that's not what we want. That we don't want just
(05:09):
mobile order. We want to go in, sit there in
a comfy chair and listen to music and right on
our laptop. That they want to go back to that
what they went away from a couple of years ago.
Speaker 1 (05:19):
Yeah, well, even if I have to share my coffee,
getting back to something that resembles a normal will be nice. Yeah,
so I'm looking forward to that. Alex, Thanks very much, buddy.
I don't know if it's as beautiful there as it
is here, but I hope you have a wonderful, beautiful
week Yeah, right.
Speaker 3 (05:31):
Now, eighty five degrees right now, it's nice.
Speaker 1 (05:33):
We've got seventy eight sunshine.
Speaker 3 (05:34):
Beautiful.
Speaker 1 (05:35):
It's going to be the same all weekend, beautiful weekend
so I'm going to try to be productive with mine too,
and we'll talk again next week.
Speaker 3 (05:41):
I love it. Enjoy that, thanks very much, Zach.
Speaker 1 (05:43):
I asked you earlier at the beginning of the show
if you were going to do anything. Seriously, if you
have nothing to do, there's a chance I may be
grilling do a little something this weekend. Please, I'm asking
you stay away from my place and then it's.
Speaker 3 (05:57):
Not a problem.
Speaker 1 (06:00):
Sunday. I don't know. If I get a burn my saddle,
I may head up there north of Marysville to that
big event. If you go, I might go. Are you
thinking about it? Seriously, I'm not joking. I might. I
never do anything, honestly, it's a nice ride. I like
going out that way anyway. Yeah, I'm a big questions
for some of these people too. Oh really really now,
(06:21):
if it means seeing you ask serious questions, I might
go just for that pleasure. You'd be surprised. I will
get links, by the way, on the Facebook page, on
the at least the Facebook and the Twitter for that.
It's Marysville three hours from six three thirty to six
thirty and actually just north of Marysville, and uh, a
lot of the major candidates are going to be up
(06:43):
there the third Annual Marysville. What's it called, I don't
have it in front of me. Third Annual Marysville. It's
it's I Forget Lola. Yeah, something like that. But Ramaswami
used to be there, and Yost is to be there,
Bob Sprague's to be there, Dan Hawkins. Veritable potpourri of
people that will be looking for your vote. So it's
(07:03):
your chance to go out on Sunday and enjoy a
beautiful day weatherwise, meet them, ask some questions, and you know,
maybe they'll sway and maybe they won't, but at least
you'll get the opportunity to find out what some of
these candidates are all about.