Starbucks Innovates

We have 370 clients who own Starbucks. It's been a very solid performer over the years. It doesn't grab as much attention because Starbucks is not as flashy as some of our other holdings. However the business has been built on exciting innovations over the decades. Selling coffee and snacks is incredibly competitive so they have had to be ahead of the curve to get to where they are today.

The Wall Street Journal made a cool YouTube video talking about their recent innovations, more specifically the Starbucks app. 24% of Starbucks transactions in the US are now through the mobile app. These clients have actual deposits of $2.4 billion with Starbucks. Every retailer dreams of being paid before a sale. These 'deposits' would make Starbucks the 385th biggest bank in the US.

Other innovations during Covid like drive-thrus in the suburbs and pick up stations in the cities have stuck, making the experience for the client better and the turnover for Starbucks more efficient. Every single detail is well thought through, from store layouts to employee benefits. This is a very well-managed business that deserves a place in your portfolio.