Business

Starbucks Extracts More Money with Pricier Drinks, Food

Published

10 years ago

April 24, 2015

In this March 18, 2015 file photo, Starbucks CEO Howard Schultz speaks at the coffee company's annual shareholders meeting in Seattle. Starbucks will report earnings Thursday April 23, 2015. (AP Photo/Ted S. Warren, File)

In this March 18, 2015 file photo, Starbucks CEO Howard Schultz speaks at the coffee company’s annual shareholders meeting in Seattle. (AP Photo/Ted S. Warren, File)

CANDICE CHOI, AP Food Industry Writer

NEW YORK (AP) — Starbucks is extracting more money from customers with offerings like a “Flat White” espresso drink and revamped baked goods that cost a little more.

The Seattle-based chain reported a higher quarterly profit Thursday, with sales jumping 7 percent at established U.S. stores. The company said much of the increase came from higher spending per visit.

New drinks like the “Flat White” espresso drink and Teavana “Shaken” iced teas help drive up sales because they’re a little pricier than other drinks, Starbucks Chief Financial Officer Scott Maw said. He noted the company is also charging more for baked goods like croissants, which are being made with new recipes.

“What we’re seeing is a premiumization, a trade-up,” Maw said in an interview.

In a conference call with analysts, CEO Howard Schultz said the “Flat White” and new cold-brewed iced coffees also help extend the company’s position as a “coffee authority.”

Dunkin’ Donuts, which has been trying to appeal to new coffee drinkers with the introduction of a dark roast last year, said earlier in the day that sales rose 2.7 percent at established U.S. locations.

During its second fiscal quarter, Starbucks said its U.S. sales bump was also helped by a 2 percent uptick in customer traffic, which translated into an additional 10 million visits. That was driven in part by people coming in to redeem the $1.6 billion that was loaded onto gift cards during the holidays.

The company is also convincing people to buy more food in general.

Overall food sales in the U.S. were up 16 percent from a year ago, while breakfast sandwich sales were up 35 percent, the company said. A key part of Starbucks’ strategy for continuing to drive up sales is its expansion into the afternoons and evenings, when its stores tend to be less busy. Already, Starbucks says about a third of orders include a food item and that the figure has been ticking higher.

The company is also testing a program in about 30 locations where it sells alcohol in its cafes in the evenings, and has said plans to expand that more broadly this year.

Globally, sales at established locations rose 7 percent during the period. That included a 12 percent increase in Asia, while the unit encompassing Europe, the Middle East and Africa rose 2 percent.

Starbucks still expects global sales at established locations to rise in the mid-single digits for the year.

For the period ended March 29, Starbucks’ profit jumped 16 percent to $494.9 million, or 33 cents per share, which was in line with expectations.

Total revenue rose 18 percent to $4.56 billion, more than the $4.53 billion Wall Street expected.

Shares of Starbucks Corp. were up 4.3 percent at $51.54 in extended trading.

____

Follow Candice Choi at www.twitter.com/candicechoi

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Pamela Price Appoints Deputy D.A. Jennifer Kassan as New Director of Community Support Bureau

On Monday, District Attorney Pamela Price announced Deputy District Attorney Jennifer Kassan as the new director of the Community Support Bureau. Kassan has over 25 years of experience as an attorney and advisor for mission-driven enterprises including benefit corporations, low-profit limited liability companies, nonprofits, cooperatives, hybrid organizations, investment funds, and purpose trusts.

Published

16 hours ago

November 4, 2024

Oakland Post

Alameda County Deputy District Attorney Jennifer Kassan. Courtesy photo.

Special to The Post

On Monday, District Attorney Pamela Price announced Deputy District Attorney Jennifer Kassan as the new director of the Community Support Bureau.

Kassan has over 25 years of experience as an attorney and advisor for mission-driven enterprises including benefit corporations, low-profit limited liability companies, nonprofits, cooperatives, hybrid organizations, investment funds, and purpose trusts.

Working in the DA’s new administration since 2023, Kassan was most recently assigned to the Organized Retail Theft Prosecution team.

Kassan has a master’s degree in City Planning from the University of California, Berkeley. She received a National Science Foundation Fellowship from Yale Law School, and graduated from Yale Law School in 1995. She earned her B.A. in Psychology with a minor emphasis in Ethnic Studies from UC Berkeley.

Kassan’s education, extensive legal background, list of notable accomplishments and impressive resume includes helping to found and lead multiple organizations to support community wealth building including:

Community Ventures, a nonprofit organization that promotes locally-based community economic development,
the Sustainable Economies Law Center, a nonprofit that provides legal information, training, and representation to support sustainable economies
the Force for Good Fund, a nonprofit impact investment fund
Crowdfund Main Street, a licensed portal for regulation crowdfunding
Opportunity Main Street, a place-based ecosystem building organization that supports under-represented entrepreneurs and provides education about community-based investing.

In addition, Kassan served as an elected member of the City Council of Fremont, California from 2018 to 2024, and on the Securities and Exchange Commission Advisory Committee on Small and Emerging Companies.

In 2020 she was named to the list of World-Changing Women in Conscious Business by SOCAP Global.

“We are excited to see Jenny accept the role as the new leader for the Community Support Bureau,” said Price. “She brings a wealth of talent, experience, and a vision to expand our office’s engagement with community groups and residents, that will level-up our

outreach programs and partnerships with local organizations with the aim of promoting crime prevention.

“We thank Interim CSB Director Esther Lemus, who is now assigned to our office’s

Restitution Unit, for her hard work and a great job fostering positive relationships between the DAO and the community.”

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Business

Sacramento Kings and Black-Owned Digital License Plate Firm Enter History-Making Partnership

Reviver founder and Chief Strategy Officer Neville Boston attended the Sacramento Kings’ season opener at Golden 1 Center, witnessing players debut the company’s patch. Reviver proudly supports the Sacramento Kings’ community and diversity, equity, and inclusion initiatives. Photo by Antonio Ray Harvey, California Black Media (CBM).

Published

16 hours ago

November 4, 2024

Oakland Post

Reviver founder and Chief Strategy Officer Neville Boston attended the Sacramento Kings' season opener at Golden 1 Center, witnessing players debut the company's patch. Reviver proudly supports the Sacramento Kings' community and diversity, equity, and inclusion initiatives. Photo by Antonio Ray Harvey, California Black Media (CBM).

By Antonio Ray Harvey, California Black Media

Reviver, the world’s first digital license plate and connected vehicle platform, has entered into a history-making jersey patch partnership with the Sacramento Kings, team officials announced right before the team’s season opener on Oct. 24.

The collaboration establishes Reviver as the first Black-founded technology jersey patch partner in the National Basketball Association (NBA).

The Reviver logo now appears on the left front strap of Kings’ uniforms.

Reviver founder and Chief Strategy Officer Neville Boston was in attendance to see the company’s patch worn by the Kings, during a game with the Minnesota Timberwolves at Golden 1 Center in downtown Sacramento.

“It was an absolutely amazing night. More than I ever expected,” Boston told California Black Media (CBM). “The Sacramento Kings have been incredible. On a national, and maybe a worldwide level, this partnership raises the profile of Reviver with the assistance of (Kings chairman and CEO) Vivek Ranadivé and the Kings.”

According to the Kings’ brass, Reviver, supported by the Black Star Fund, a Black-led venture capital firm based in Sacramento, is now an official “innovation partner” of the Kings and Golden 1 Center; a presenting partner of “Capitalize Technology,” a King’s corporate social investment initiative; and the exclusive digital license plate of the Sacramento Kings.

Headquartered in Granite Bay, a suburb of Sacramento, Reviver was born from a vision to modernize and streamline the vehicle registration renewal process. On Jan. 1, 2023, the state of California joined Georgia, Colorado, Michigan, and Arizona as states that have approved digital license plates for use statewide, after Reviver completed a four-year pilot program that evaluated a replacement for metal plates.

About 10,000 California drivers bought digital plates during the pilot program. Vehicles registered with the state are eligible to adopt the new high-tech tags. Reviver existence was made possible when Gov. Gavin Newsom signed Assembly Bill (AB) 984 in September 2022.

Under that law, California vehicle owners can update their titles, registrations, and other records remotely. In addition, the digital license “RPlate” includes a flashing message if a vehicle is reported stolen or if there is an Amber Alert.

Ranadivé is spreading the news that Reviver has international potential.

“This jersey patch partnership with Reviver continues the Kings long tradition of using our global platform to promote innovation and technology,” Ranadivé stated. “It’s particularly exciting to showcase a homegrown company that was part of our Kings Capitalize program. This is just the beginning of our work together, and we look forward to helping Reviver in its mission to modernize the driving experience.”

The commercial use of patches in professional basketball all began in 2009 when the Women’s Basketball Association (WNBA) Phoenix Mercury removed its name to replace it with sponsor, LifeLock, an identity-theft protection company. The landmark deal netted a contract worth about $1 million annually.

Kindra Montgomery-Block, vice president of diversity, equity, and social impact for the Sacramento Kings, was the integral facilitator who assisted Boston and his team in connecting with the sports franchise that is boasting 40 years in the Capital City.

“This partnership between the Kings and Reviver, backed by the Black Star Fund, will invest in the Sacramento community to promote technology and innovation in the region,” Montgomery-Block stated. “Reviver will support the Sacramento Kings community and diversity, equity, and inclusion initiatives.”

Editor’s Note: Neville Boston is a California Black Media board member.

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Activism

NAACP California-Hawaii State Convention Highlights Black Voter Engagement, and More

A Friday panel featuring NAACP Chairman Leon W. Russell and Regina Wilson, Executive Director of California Black Media, examined Project 2025, an initiative perceived as a potential threat to civil rights, healthcare access, and environmental protection. This session emphasized Project 2025’s projected impact on Black communities, noting that policies within the initiative could diminish gains in civil and environmental rights over decades. Russell and Wilson highlighted the need for vigilant monitoring and community mobilization to address these challenges.

Published

1 day ago

November 4, 2024

Oakland Post

NAACP State Conference President Rick Callender (right) engages in a discussion on voter engagement and community advocacy with NAACP President and CEO Derrick Johnson during the 37th NAACP California-Hawaii State Convention in Los Angeles. Photo by Rich Woods.

By Bo Tefu, California Black Media

The 37th NAACP California-Hawaii State Convention concluded on Sunday, Oct 27, following four days of discussions and workshops at the Los Angeles Airport Marriott. Bringing together civil rights leaders, policymakers, and advocates from California and Hawaii, the convention operated under the theme “All In.” The participants discussed critical issues impacting Black communities, including criminal justice reform, health equity, economic empowerment, education, environmental justice, and voting rights.

On Saturday, the President’s Fireside Chat brought together NAACP President Derrick Johnson and CA/HI State Conference President Rick Callender, who discussed the urgency of voter engagement and community advocacy.

Guest speakers included Congresswoman Maxine Waters (D-CA-43), who spoke at the Women in NAACP (WIN) Labor Luncheon about the intersection of labor rights and civil rights. California State Superintendent Tony Thurmond delivered remarks at the Leadership Dinner on education equity, focusing on policies to ensure all students have access to high-quality education.

Honors were given to longtime social justice advocate and former Assemblymember Mike Davis for his work in community activism. At the same time, actor and activist Danny Glover and the Rev. Dr. Amos C. Brown received the 2024 Legacy Hall of Fame Awards, recognizing their lifelong commitments to advancing civil rights.

The convention also offered practical workshops, including “What’s On Your Ballot?,” where coalition leaders provided analyses of California propositions, explaining their potential impacts on community rights and resources. The Voter Turnout Workshop provided background and encouraged participants to promote voter turnout through community-centered outreach strategies.

Sunday’s events closed with a Prayer and Memorial Breakfast honoring the contributions of past and current civil rights leaders.