Starbucks and Swiggy Celebrate the Launch of Starbucks 50th Store in Bengaluru

Starbucks and Swiggy Food Marketplace CEOs present at the launch of Starbucks first drive-thru outlet in South-India

Starbucks, a global coffeehouse, recently celebrated the launch of Starbucks 50th outlet in Bengaluru. The launch event of Starbucks first drive-thru store in the city was attended by the CEO of Starbucks, Sushant Dash and Rohit Kapoor, CEO of Swiggy Food Marketplace. The event celebrated the craftsmanship and commitment of the partnership to deliver top quality food and beverages to consumers across the country. Swiggy delivery partners were also present at the launch event.

Swiggy and Starbucks joined hands 8 years ago with only 6 outlets in Mumbai. The partnership has grown stronger over the years. The duo has collaborated and launched numerous customer-centric campaigns based on in-depth understanding of customer behavior, with the objective of enhancing consumer experience. Some of the marquee campaigns include 'Double the Love,' 'Friday Frappuccino,' and 'Items at 199.' Starbucks and Swiggy had also partnered to roll out the ‘Classics’ menu to roll out high-value meal items and combos tailored specifically for the Indian market.

Starbucks is proud to partner with Swiggy across 70 cities and 350+ outlets in India. To mark the milestone moment of the launch of the 50th Starbucks store in Bangalore Rohit Kapoor, CEO, Food Marketplace, Swiggy, joined 50 Swiggy delivery partners on a celebratory ride to the new store for a cup of Starbucks coffee. To make the occasion even more special, Sushant Dash, ceo, TATA Starbucks, personally brewed a signature Americano for Rohit, commemorating this remarkable journey and shared commitment to delivering great coffee experiences to customers across the country.

Commenting on the collaboration, Sushant Dash, CEO, Tata Starbucks, said, “Our 50th store in Bengaluru and first Drive-Thru in South India marks an exciting new chapter in our growth journey- one rooted in accessibility, innovation, and deep local relevance. At Starbucks, we use the specialty grade Arabica for every cup of coffee, serving the finest quality to every consumer. Swiggy has been a trusted partner in this journey, helping us deliver the Starbucks experience to customers wherever they are. As we expand across India, we remain committed to crafting new moments of connection, whether in-store or delivered to your doorstep.”

Speaking on the sidelines of the launch, Mr. Rohit Kapoor, CEO, Swiggy Food Marketplace, said, “Starbucks’ 50th store in Bengaluru is not just a milestone for their retail footprint, but also a marker of how far this partnership has come. From just a handful of stores in one city to now serving customers in 70 cities, Swiggy has been proud to partner with Starbucks every step of the way. Together, we’ve worked to make high-quality coffee and food experiences more accessible to millions of consumers across the country. As we scale further, we’re excited to keep pushing boundaries and delivering memorable experiences, one order at a time.”

Starbucks Reports Steep Decline in Sales, Particularly in US (6%) & China (14%)

Starbucks has decided to suspend its financial guidance for 2025 after experiencing a significant decline in sales. The company reported a 7% drop in same-store sales for the fourth quarter ended September 29, 2024, which was twice as steep as analysts had expected.

The decline was particularly pronounced in the US, where transactions were down 10%, and in China, where comparable sales fell 14%.

Financial guidance is a company's forecast or projection of its future financial performance. It typically includes estimates of revenue, earnings, expenses, and other key financial metrics for a specific period, such as a quarter or a fiscal year. Financial guidance helps investors, analysts, and stakeholders understand the company's expectations and make informed decisions.

When a company like Starbucks withdraws its financial guidance, it indicates uncertainty about future performance, which can affect investor confidence and stock prices.

For the fourth quarter of fiscal year 2024, global comparable store sales declined 7%, and consolidated net revenues declined 3% to $9.1 billion, or a 3% decline on a constant currency basis. GAAP earnings per share is $0.80, down 25% over prior year. Non-GAAP earnings per share is also $0.80, declining 24% on a constant currency basis.

The company’s results were primarily driven by softness in North America’s revenues in the quarter, specifically a 6% decline in U.S. comparable store sales, driven by a 10% decline in comparable transactions, partially offset by a 4% increase in average ticket.

Starbucks' New CEO Brian Niccol has acknowledged the need for a fundamental change in strategy to return to growth. He plans to simplify the menu, adjust prices, enhance mobile ordering, and revamp marketing efforts. Starbucks will also focus on making its cafes more inviting and improving morning service.

Fourth Quarter 2024:

• Global Comparable Store Sales: Declined by 7%
• Consolidated Net Revenues: Fell by 3% to $9.1 billion
• GAAP Earnings Per Share: $0.80, down 25% over the prior year.
• Non-GAAP Earnings Per Share: Also $0.80, declining 24% on a constant currency basis. 
• US Sales: Declined by 6%, driven by a 10% drop in comparable transactions, partially offset by a 4% increase in average ticket.
• China Sales: Fell by 14%, with an 8% decline in average ticket and a 6% drop in comparable transactions.

Full Fiscal Year 2024:

• Global Comparable Store Sales: Declined by 2%.
• Consolidated Net Revenues: Increased by 1% to $36.2 billion.
• GAAP Earnings Per Share: $3.31, down 8% over the prior year. 
• Non-GAAP Earnings Per Share: Also $3.31, declining 6% on a constant currency basis