Walmart+ Is 50% Off, Starbucks Sketches Its Turnaround Plan & ChatGPT Search Has Arrived | Fast Five
In this week’s Omni Talk Retail Fast Five news roundup, sponsored by the A&M Consumer and Retail Group, Ownit AI, Avalara, Mirakl, and Ocampo Capital, Chris and Anne discuss:
- Walmart discounting its Walmart+ membership by 50% for the holidays (Source)
- The jaw dropping value of DoorDash and Lyft’s new partnership (Source)
- OpenAI’s launch of ChatGPT Search (Source)
- The Children’s Place’s decision to sell products via Shein (Source)
- And closed with an examination of Starbucks CEO Brian Niccol’s recently unveiled plans to turnaround Starbucks (Source)
There’s all that, plus Oregon Trail, Westminster Dog Show trading cards, and why Chris refuses to eat hot dogs ever again.
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Transcript
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Speaker A: ,: Speaker A:I'm one of your hosts and mazinga.
Chris Walton:And I'm Chris Walton and we are.
Speaker A:Here once again to discuss all the top headlines from the past week making waves in the world of omnichannel retailing.
Speaker A:Chris we're just going to roll right into the show today because we it's the first week of the month and we have some hardware to give out.
Chris Walton:It is.
Chris Walton:And it is.
Chris Walton:We do have some hardware to give out.
Chris Walton:You're right.
Chris Walton:It is time to recognize this month's Omnistar.
Chris Walton:So let's get right to it.
Chris Walton:Our army.
Chris Walton:So for those that maybe are new to our show, which how could you be?
Chris Walton:I mean, we've been doing this for like almost six, seven years now.
Speaker A:And so like there might be, we've got some new joiners, but hey, if.
Chris Walton:You'Re new, we welcome you, we're excited to have you.
Chris Walton:But our Omnistar award is the award we give out each month in partnership with Corso to recognize the top omnichannel operators out there.
Chris Walton:Not the pundits, not the so called experts, but the real life retail operators making a difference within their organizations.
Chris Walton:And for those that are unfamiliar with Corso, Corso's AI copilot coaches retail leaders to optimize store performance at every level.
Chris Walton:Transform.
Chris Walton:Transform retail operations from data overload into data powered.
Chris Walton:This month award goes to.
Chris Walton:Anne.
Chris Walton:Are you ready?
Chris Walton:Yes.
Speaker A:I cannot wait.
Speaker A:I'm really excited about this one.
Chris Walton:Today's award goes to Denise Incandela, the EVP of the fashion division at Walmart us.
Chris Walton:We met Denise last month at Shop Talk and Ann and I instantly were enamored with her and her plans to make to take Walmart to new heights in fashion.
Chris Walton:And as Denise told us, her job or mission to transform Walmart's fashion business is just 10% done and answered that if you listen back to our interview with her, you are guaranteed to love as much as Anne and I did.
Chris Walton:So, Denise, congratulations.
Chris Walton:This month's Omnistar award goes to you.
Speaker A:Yes, 10% is right.
Speaker A:Like there is so every.
Speaker A:I feel like every day since we did that interview with Denise at Shop Talk, every day there's more coming out about Walmart's fashion and I am super pumped and we'll get into it later in the show.
Speaker A:But I've been doing quite a bit of Walmart shopping these days, Chris, so I'm pumped for where it goes.
Chris Walton:I know, and I'm excited to get into it and talk a little bit more about what you just teased there too.
Chris Walton:Nicely done.
Chris Walton:Nicely done, my friend.
Chris Walton:All right, in this week's Fast Five, we've got news on DoorDash and Lyft partnering up.
Chris Walton:OpenAI's launch of ChatGPT search the Children's Place launching its own shein storefront Starbucks.
Chris Walton:New CEOs plans to transform Starbucks.
Chris Walton:He's in Velda.
Chris Walton:Man, I can't wait to talk about those.
Chris Walton:But we begin today with big news that you just teased out of big blue.
Speaker A:And oh my gosh, that's right, Chris.
Speaker A:Headline number one, Walmart slash the price of its Walmart plus subscription by half in just ahead of the holidays.
Speaker A:Now this is just coming out.
Speaker A:You only have a few days left, people to take advantage of this.
Speaker A:So make sure you look into this.
Speaker A:According to the Fashion Network, Walmart began offering its membership service Walmart plus at a 50% discount, now offering a one year Walmart plus membership for just 49, down from its regular $98 per year.
Speaker A:Chris, did this sharp discount make you want to run out and subscribe to Walmart Plus?
Speaker A:I think I know the answer, but I'd like to hear it from your mouth.
Chris Walton:Yeah, I mean, I was joking.
Chris Walton:We were joking with Vanessa Yates, SVP of Walmart plus at Grocery Shop that like, maybe I need to sign up for, for Walmart Plus.
Chris Walton:And so yes, it did, but unfortunately I sent you this article and the next thing I knew I was getting a combination of emails and text messages from you with passwords and usernames for the Omni account created around this.
Chris Walton:So 100%, yes, we're all in.
Chris Walton:And, and as I think about where I'm going to try and go and do all my grocery shopping at the discount that they're offering and considering Walmart's very expanded product assortment, you know, via their marketplace, wabar's just jumped squarely to the top of my holiday shopping list.
Chris Walton:And 100 it has.
Chris Walton:And I may even.
Chris Walton:This is not going to surprise you at all.
Chris Walton:Not going to surprise you at all.
Chris Walton:But I may even spring for some new kicks for myself via the StockX partnership that we're excited about as well.
Speaker A:Like how do we work in.
Speaker A:Chris, getting new shoes from StockX.
Speaker A:I swear this is a business expense, right?
Chris Walton:Yes.
Chris Walton:Right.
Chris Walton:100%.
Speaker A:A subscription service from one of the largest retailers in the country.
Speaker A:Yes.
Speaker A:How do we sign off on this?
Chris Walton:Yes.
Chris Walton:Right.
Chris Walton:I do need some new Jordans for my, for my, my keynotes in my panel moderations at Shop Talk and NRF and Grocery Shop and all that stuff.
Chris Walton:So yeah, maybe, maybe.
Speaker A:Yeah.
Speaker A:Yeah, it's, it's wardrobe, right?
Chris Walton:That could work, right?
Chris Walton:Yeah, but what do you think?
Chris Walton:What do you think?
Chris Walton:What's your take?
Speaker A:Well, obviously I, yeah, as soon as I read this I was like, okay, well this is, there's no reason not to at this point.
Speaker A:And I think that we have to look at like, this is not a new concept.
Speaker A:I mean, did this just a few months ago with their Target Circle program where they were offering 50% off for a year of Target Circle, but The benefits.
Chris Walton:But you don't get anything with Target Circle.
Chris Walton:Like what do you get with Target Circle?
Speaker A:Right, exactly.
Speaker A:I mean you get the, you get shipping and like same day shipping and that kind of thing.
Chris Walton:I guess.
Speaker A:But.
Speaker A:Yeah, but I think that the thing that's so compelling about the Walmart plus thing here is that there are even more discounts than I realize than what we've been reporting on for the last couple of years.
Speaker A:Like you know, delivery inside to your house.
Speaker A:You can still have that done if you want that to take place.
Chris Walton:Benefits.
Chris Walton:Not more discounts, more benefits.
Chris Walton:Right.
Speaker A:Is that more benefits, more benefits than I.
Speaker A:Then I guess I realized.
Speaker A:But like the, even like the discount stuff though too, like I, the gas discounts, like I didn't realize it was beyond.
Speaker A:It's not just Sam's Club like fueling stations or Walmart fueling stations.
Speaker A:This is like you can put your zip code in and it's fueling stations no matter where you are in the world.
Speaker A:So there's that.
Chris Walton:I didn't know that.
Speaker A:There's also, there's also travel discounts like you can get.
Speaker A:Like I had no idea that that was a component of this.
Speaker A:And then obviously insurance and all these other things that you get as a member of Walmart Plus.
Speaker A:So I think that that's really what is so compelling here.
Speaker A:And I'm, I cannot wait to see the numbers on this promo to see like how many subscribers you get in the, in the next couple of weeks.
Speaker A:Because between that the discounts at Walmart and then like the marketplace stuff that you were talking about, there is just so, so much that you get with this membership.
Speaker A:Yeah.
Speaker A:It'll be crazy to see.
Chris Walton:Yeah, yeah.
Chris Walton:And I didn't think about this, but the comparison with Target's really interesting to me too because it's kind of a false dichotomy.
Chris Walton:Yes, the price is kind of the same but, but, and really the only benefit you get with Target is like the instant couponing when you go through the checklane if you're a Circle member.
Chris Walton:Right.
Chris Walton:I mean that's, but you don't even.
Speaker A:Need to be a member for that.
Speaker A:Like you don't need to pay for a membership for that.
Speaker A:Like that's the thing.
Chris Walton:But the reason I bring that up too is like Walmart's everyday low price.
Chris Walton:So you've already got that beat, you know, by that.
Chris Walton:So like it's just a, it's a strict marketing play in a lot of ways.
Chris Walton:So, so yeah, so it's, it's, it's it's just fascinating to me to watch the dynamics here.
Chris Walton:But the dynamics, Anne, are going to get even more interesting in the subscription wars when we do the next headline.
Chris Walton:So headline number two, DoorDash and Lyft are partnering up specifically, and According to a DoorDash press release, Door Dash Pass members will unlock monthly rideshare benefits at no additional cost, and eligible Lyft riders will receive a free trial of dash Pass starting Oct.
Chris Walton:30.
Chris Walton:DashPass members and Lyft riders receive exclusive monthly benefits to save on both services, including, and get ready, 5% off on demand Lyft rides and 10% off scheduled airport rides, up to four per month combined, two free priority pickup upgrades per month, a three month free dash Pass trial for new members, and also just in time for the holiday season, Dash Pass members and Lyft riders who link their accounts by December 31st will receive an upgraded perk of 50% off up to four scheduled airport rides through the end of the year, as well as 50% off one DoorDash order.
Chris Walton:And yes, I joked earlier about how you signed us both up for Walmart Plus.
Chris Walton:So upon hearing the news about DoorDash and Lyft's new partnership, how long did it take you to link your DoorDash and Lyft accounts?
Speaker A:Seconds.
Speaker A:I mean, seconds, right?
Speaker A:Already use the benefits.
Speaker A:Like I've already used my 50.
Speaker A:Have you order.
Speaker A:I've already done that yet.
Speaker A:Yeah, I already went in and we got a discount on our last Lyft ride from this weekend.
Speaker A:I mean it was, it's amazing and I think it's such a smart partnership, especially when you're kicking this off like, like you mentioned in the read, like 50% off airport rides right now, like when right in the peak travel season.
Speaker A:And then 50% off a DoorDash order, like that's enough right there to kind of make this at least your first few months of DoorDash totally, totally worth the investment.
Speaker A:And I think the other thing too is that if I look at Gen Z and Millennials and where they're prioritizing spending money right now, travel is a big one.
Speaker A:And food delivery, like you look at DoorDash and who their, their subscribers are, like, these are, these are great, great companies to be merging because everyone wins.
Speaker A:Like Lyft and DoorDash both get valuable customer data that they can share.
Speaker A:Customers are getting discounts on the things that they're already significantly spending money on each week.
Speaker A:And I think that down the road too.
Speaker A:Chris, I'm curious to hear your Thoughts on this, but I wonder if there's not, like, tech implications that can help here Once Lyft and DoorDash start integrating their systems.
Speaker A:Like, can you start routing using routing platforms for DoorDash, can you have Dashers that are, oh, 100% both pick up?
Speaker A:You know, both people pick up, just like Uber Eats is doing.
Speaker A:Yeah, like, I think, I think really this comes down to the whole.
Speaker A:Is the greater than the sum of its parts.
Speaker A:Like, collaboration here is going to be the responsibility now of every service provider out there.
Speaker A:You're going to have to find those angles of where you can provide consumers with the best experience by finding the partners that, that most closely align with you.
Chris Walton:Yeah, right.
Chris Walton:Yeah, I mean, I mean, my.
Chris Walton:The funny thing about this story to me is I actually signed up for this one before you did.
Chris Walton:I actually saw this and I texted you and it was so easy.
Chris Walton:Like, that's what I couldn't believe.
Chris Walton:Like, there's just a.
Chris Walton:There's just a, like a, an advertisement on top of my DoorDash app says, link your Lyft account.
Chris Walton:I was like, sure, why not?
Chris Walton:But, but yeah, and I mean, I agree with everything you said.
Chris Walton:The implications for me are, I think the two angles I would bring to the discussion are, on the one hand, you have here DoorDash and Lyft linking up, which is, for those that remember, not that dissimilar to when Instacart and UberEats started locking arms, you know, a while back.
Chris Walton:But the, the point I think you're making here is the discounts and the promotions of this hookup combined with the other advantages of the Dash Pass relative to Instacart, like, particularly the max streaming service, the return options, that makes this whole thing so much more appealing to me than the Instacart and Uber Eats partnership.
Chris Walton:On paper.
Speaker A:Yeah.
Chris Walton:Yeah.
Chris Walton:And on the other hand.
Chris Walton:Yeah.
Chris Walton:And then on the other hand, the other thing it gets me thinking about is who has really set themselves apart this year in the subscription landscape.
Chris Walton:And like, if we just step back and we just say who has won the subscription battle this year?
Chris Walton:The answer is clear to me, that Walmart and.
Chris Walton:Good, good one, good one, good one.
Chris Walton:But maybe, I mean, they're actually doing something unique.
Chris Walton:Right.
Chris Walton:Which is interesting.
Chris Walton:So, like, that's my point here is like, I think Walmart and DoorDash have gone leaps and bounds beyond what people expected.
Chris Walton:And.
Chris Walton:But, you know, who is left kind of holding the bag here proverbially is Amazon Prime.
Chris Walton: ly getting its butt kicked in: Chris Walton:When, when you look at how it's evolved from a service or the benefits it's providing to its members.
Chris Walton:And I hate to say that because we used to work with the VP of Amazon Prime, Jamil Ghani, but really, what is, what has prime done to differentiate itself from the pack in the last year?
Chris Walton:It's, it feels like nothing.
Chris Walton:It feels like the competition is caught up and that everyone else is providing more value now.
Chris Walton:So I hope this serves as a wake up call to prime leadership, honestly, because I think it's time prime leadership gets more creative.
Speaker A:Yeah, well, especially when the price is going up for prime too.
Speaker A:Like, I think that's the other thing.
Chris Walton:Expensive now.
Speaker A:Yeah.
Speaker A:And then all these options flashing.
Speaker A:Yeah, yeah, for sure.
Chris Walton:Yeah.
Speaker A:I love that you brought that up.
Speaker A:Cause I do think it's really important for people to be thinking about like, where's the traffic going?
Speaker A:Where are people headed?
Speaker A:Where's this next generation going to prioritize that, that monthly subscription.
Speaker A:And it certainly seems like Walmart and DoorDash are making much more compelling offers.
Speaker A:All right, Chris, let's go on to headline number three.
Speaker A:OpenAI has launched Chat GPT search.
Speaker A:According to CNBC, OpenAI on Thursday launched Chat GPT search, positioning the company to better compete with search engines like Google, Microsoft, Bing and perplexity.
Speaker A:In July, OpenAI announced it was beta testing a prototype of the search engine called Search GPT.
Speaker A:And now it's officially rolled the product into Chat GPT.
Speaker A:OpenAI says users can now quote search in a more natural, intuitive way, end quote, and ask follow up questions, quote just like you would in a conversation, end quote.
Speaker A:The search model is a fine tuned version of OpenAI's most powerful AI model yet, GPT4O and is fueled in part by third party search providers and content provided by news industry partners.
Speaker A:Chris, are you buying or selling ChatGPT search?
Chris Walton:Oh, and I'm, I'm, I'm buying.
Chris Walton:I'm buying this in a big way.
Chris Walton:In fact, I'm like, I'm, I've, I've jumped so far in the deep end of the pool you can't even see my bald head.
Chris Walton:And honestly, because I think this is 100 going to change the way we shop online.
Chris Walton:Keep in mind too, Ann.
Speaker A:Yeah.
Chris Walton:Yes.
Chris Walton:100.
Chris Walton:I really, I'm, I'm really buying this one.
Chris Walton:Hard hook, line and sinker.
Chris Walton:Because we're, we're only one week into the release of this, like barely a week and I can already see the potential.
Chris Walton:I tried it yesterday I don't know if you saw my post on LinkedIn.
Speaker A:But I did, I tried.
Chris Walton:I need, I need a new winter code, right?
Chris Walton:And so, so I started using it just to play around with it.
Chris Walton:And I'm like, basically like, say, you know what?
Chris Walton:I live in Minneapolis.
Chris Walton:I want to win a code for under a certain amount of dollars.
Chris Walton:Create a matrix for me that, you know, compares all the quotes that I should be looking at and, and gives me the characteristic breakdown of what code has what, and put it in a chart for me and let me know what I should do.
Chris Walton:And it did it.
Chris Walton:And it was pretty cool.
Chris Walton:Now, now granted, there's still a lot of things that need to come together, particularly on the data side.
Chris Walton:Like the model is only as good as the data.
Chris Walton:Which retailers, if you're listening, get your data right if you want to win in this new search landscape.
Chris Walton:But that's what, you know, that's one thing.
Chris Walton:And then you got to figure out how to get commerce conducted off it, get images.
Chris Walton:So the user interface still needs to take shape.
Chris Walton:But man, and I'm, I'm so excited about this.
Chris Walton:Like, I'm, I'm almost like Jim in American Pie if I'm not too careful.
Chris Walton:But it's super, super cool.
Chris Walton:And Google is going to have to start adapting their experience fast to counter this because I was on Google trying to do the same thing and it's, it was not nearly as easy.
Chris Walton:I know they're thinking about it.
Chris Walton:In fact, I got some texts from, from some Google Lights yesterday after they saw my post.
Chris Walton:The, you know, talking about all the things that need to happen to make this happen, which is, which is really cool to think about and gets my mind going because, but man, the, the, the shots have been fired on this and holy cow is my opinion in terms of, of where this goes next.
Chris Walton:And, and we're going to see it through all angles.
Chris Walton:We're going to see it on, you know, through the search engines.
Chris Walton:We're going to see it online through, through the retailer's own sites.
Chris Walton:Like, it's, it's coming and it is a better way to look for product.
Chris Walton:Like, I'm curious for you, you're in the home furnishing space right now because you're moving.
Chris Walton:Wouldn't this be advantageous for you then having to, like, go through the list of like, preset filters that limit what you want and the language with which you can use to describe the things you're looking for?
Chris Walton:I don't know.
Chris Walton:But I'm curious what you think yeah, yeah.
Speaker A:I mean, I think, I think we're looking at this in, in a couple different ways.
Speaker A:I think on the Google side of things go does have the product imagery, they have the shopping experience.
Speaker A:I think where Google still needs to improve is in the.
Speaker A:Like you said, like not every question that you query with Google has the, the natural language response yet like you're getting from chat GPT.
Speaker A:But I also tried the search GPT function and I think like that still has a long way to come.
Speaker A:Like there's so many more prompts in there to like get it out to get, get the export that you would want.
Speaker A:And I think that already comes naturally to people going to Google or Google Properties to search for product already.
Speaker A:So I think it's going to be like a real race ultimately ending in like the consumer getting a so much a much simpler search process and search changing significantly in how we search for things within the next year.
Speaker A:Even like that's what I think is so exciting.
Speaker A:I think like by the time we're at Shop Talk in the spring or you're like, or even going into the summer, I think things are going.
Speaker A:The shopping experience for the average consumer in the US is going to look so different.
Speaker A: ler investments then shift in: Speaker A:And it's, it's.
Speaker A:You're already behind retailers.
Speaker A:Like this is where I think you need to put a lot of focus and investment as we're headed into this year.
Chris Walton:Yeah.
Chris Walton: e retailers invest in this in: Chris Walton:It'll be like a 26, 27, 28 investment horizon.
Chris Walton:But I have no idea.
Chris Walton:But the other point too, and like you brought this up on a webinar we did recently.
Chris Walton:Like I got thinking about the possibility of ad insertion within these Nash natural language queries that you're making too.
Chris Walton:Like those are going to convert like crazy.
Chris Walton:Like, hey, I want this, you know, with this characteristics, I want it delivered to me now.
Chris Walton:Who can give it to me?
Chris Walton:What, what's the best price you can give?
Chris Walton:Me?
Chris Walton:And man, how the technology starts to change around that whole idea too.
Chris Walton:It's just, oh man.
Speaker A:Well, Google's already doing that.
Speaker A:Google's already doing that right now with their new shopping tools and it is unbearable.
Speaker A:Like I started doing that like you said, with home furnishings and like Taking a picture of a chair and then seeing that across the board.
Speaker A:Like, you're already seeing the deals that you can add.
Speaker A:The, like, they have the, the discount codes in some of the pictures.
Speaker A:It's like, this is just insane, the amount of data I now have at my fingertips as a consumer.
Chris Walton:So, yeah, if you kind of already know what you want, like, Google is crushing it right now with all their new rollouts and their new innovations they put particularly around pricing.
Chris Walton:So, yeah, I mean, it's just, it's, it's a cool time to be in retail because it's going to change a lot here over the next 10 years.
Chris Walton:All right, headline number four.
Chris Walton:Speaking of changes, the Children's Place has opened a digital storefront on Shein.
Chris Walton:According to chain stories, the Children's Place is now selling its apparel directly to users of the global on demand fashion app Shein.
Chris Walton:Currently, the Children's Place storefront is available only to us Shein customers and will soon be made available globally in a phased rollout.
Chris Walton:The partnership is also somewhat of a departure from normal business practices for Shein, which mostly offers Shein branded affordable apparel and accessories from a global network of vendors.
Chris Walton:And I'm curious, would you have advised the Children's Place to start selling via Shein?
Speaker A:Yeah, I mean, I, we already know that some retailers and brands are testing like some product development with Shein.
Speaker A:Like they're using like early stage, like product design and development where they're just trying to get prototypes made of certain things.
Speaker A:So I think this, to me though, feels like an experiment that has to be done.
Speaker A:You have that younger demographic that's, you know, using she and religiously day after day after day to get, you know, outfitting for, outfitting for themselves.
Speaker A:And I think the next like, progression into this with, with this age group is getting into kids wear.
Speaker A:Like, it just makes sense to test this so that, you know, as people are buying clothing for their own kids that, or they're gifting that, that they have another place to go get it where, you know, where they're already engaged in shopping.
Chris Walton:I would 100% do this if I was Children's Place.
Chris Walton:I mean, we were screwing around on the Internet yesterday.
Chris Walton:We realized that Children's Place already has a storefront on Amazon.
Chris Walton:So if you're already all in on the marketplace strategy, why wouldn't you go to another marketplace?
Chris Walton:I don't see why you wouldn't do that.
Chris Walton:It makes no sense logically now, de minimis, regulations aside, because we don't know how that's going to shake out.
Chris Walton:But for example, does the Children's Place or some other brand start to take note of this and start to parlay this into a new way to do e commerce?
Chris Walton:And by that I mean I e going direct from factory.
Chris Walton:So small batch production should work just as well for any E commerce player that wants to think about this in this way.
Chris Walton:The only catch is would the customer be willing to wait the additional time for it?
Chris Walton:But I think they would in exchange for the lower price.
Chris Walton:So this potentially gets the Children's Place more accessible to the average American consumer if they take this approach, which also means, and this is where my head really starts to spin, Anne.
Chris Walton:Relationships like this via Shein also create a world where a brand is potentially never out of stock online.
Chris Walton:And that's crazy.
Chris Walton:Think about that for a second.
Chris Walton:You're never out of stock online.
Chris Walton:So that's why I love this idea and think we could see more people go this way in the future.
Chris Walton:Or at least there's the other angle to this.
Chris Walton:At least white label Shein's supply chain capabilities for their own website.
Chris Walton:So they can never be out of stock.
Chris Walton:Right.
Chris Walton:There's a lot of angles to this that are going to come and sprout up.
Chris Walton:And that's, that's why I love it.
Chris Walton:And that's why I'm, I'm, I'm 100% supportive of children's Place trying this, especially given where they are financially too.
Speaker A:All right, Chris, let's go to headline number five.
Speaker A:This is the headline I was most excited about from this week, I have to say.
Speaker A:So Starbucks new CEO Brian Niccol wants to make Starbucks a coffee shop again, but also a faster one, according to Restaurant Business Online.
Speaker A:Nickel, in his first earnings call at the helm of the Seattle based chain last Wednesday, described a strategy that effectively makes the company a coffee shop again with comfortable seating and ceramic mugs for those who want to spend some time inside, much like they had for most of the chain's history.
Speaker A:But the company will also be quicker for those customers who have no intent on sitting anywhere but their office chair or their automobile.
Speaker A:Nickel wants every customer to get their drink within four minutes of ordering, a goal the company currently meets only half the time.
Speaker A:It's wild he's in intent on achieving that goal.
Speaker A:Nicole mentioned four minutes 13 times on the earnings call, even going so far as saying, quote, I'm putting a full court press on solving four minutes, end quote.
Speaker A:Starbucks also announced on the earnings call that it plans to stop charging customers who order non dairy beverage modifiers for their drinks such as oat milk or almond milk, and that it plans to bring back.
Speaker A:The condiment bars were that were a casualty of the pandemic, which will help speed service because baristas will be able to simply hand customers their coffees right at the point of sale.
Speaker A:While removing those charges for the non dairy milk will cost the company some revenue.
Speaker A:Nickel believes that allowing customers to add their own almond milk will improve through throughput and help traffic in the long run.
Speaker A:And customers will probably like what amounts to be a 10 discount on their drink now.
Speaker A:Chris.
Chris Walton:Wow, where do we start?
Chris Walton:AD oh my God.
Speaker A:This is also the A M put you on the spot question.
Speaker A:Oh, I forgot about that.
Chris Walton:We don't have that yet.
Chris Walton:Oh God.
Speaker A:Okay, okay.
Chris Walton:A lot of rose.
Speaker A:Lots of questions here.
Speaker A:Yes.
Chris Walton:Oh my God.
Speaker A:All right, all right.
Speaker A:So A M wants to know.
Speaker A:This is their question for you.
Speaker A:We discussed the CEO transition and what Starbucks should do next with you guys on the Fast five.
Speaker A:When it was announced and we hosted a few months ago on that podcast, we said that Starbucks needed to get back to improving the poor speed of service and long waits, reset the right price value on products and focus on fundamental Starbucks experience for those who sit in stores.
Speaker A:So the question A and M has is, was Brian listening to all of us all along and did he steal our suggested way book?
Speaker A:Chris, the floor is yours.
Chris Walton:Oh my God.
Chris Walton:What do we like to think so anf what do we like to think so?
Chris Walton:Yes.
Chris Walton:I mean, chances are no.
Chris Walton:But maybe, you know, maybe, maybe somebody was inspired inside his organization to help him put this plan together.
Chris Walton:But I mean, and I don't know about you, I don't know if you're buying this or not because I'm curious because you, you kind of, I think in that same discussion went the complete different direction.
Chris Walton:So I'm curious to see what you think.
Chris Walton:But, but I'm not buying a first class ticket on this new turnaround train plan.
Chris Walton:But I'm definitely, I'm definitely happy to sit and coach along this journey right now.
Chris Walton:I'm definitely happy.
Chris Walton:I mean, I love the creamers in the condom bar move.
Chris Walton:That is a win win for me, both for the customers and for staff operations.
Chris Walton:I think it does everything they say it's going to do.
Chris Walton:I love the focus on four minutes because that is personally my biggest, biggest gripe, particularly when I go into the store to order and it has taken me sometimes 20 minutes to get my drink and that is just too freaking long.
Chris Walton:Now how you do that algorithmically is A big question.
Chris Walton:I don't even know if it's possible, given how many mobile orders you got going through the system.
Chris Walton:The part that I'm most like kind of leery about, though, is the.
Chris Walton:The ceramic mug thing, because that actually requires a pretty sizable operational change.
Chris Walton:You have to collect them, you have to get them washed, you have to keep them in stock.
Speaker A:But you can do that now at Starbucks, if you want.
Speaker A:You can get a ceramic mug.
Chris Walton:You.
Chris Walton:From Starbucks?
Speaker A:Yeah.
Speaker A:And how many people really were like.
Chris Walton:Oh, I didn't know you.
Speaker A:I think that's just like a.
Speaker A:I think that's like a PR sizzle thing.
Speaker A:I don't think.
Chris Walton:Yes, 100.
Chris Walton:And that's what I was going to say.
Chris Walton:I'm leery of it, but when I think about it, it's a marketing investment that could potentially be offset by reducing the marketing budget in other places.
Chris Walton:So by that, I mean, instead of advertising Starbucks as the third place, just make it the third place, and the story sells itself.
Chris Walton:So that's why I think it's kind of genius, especially if you could.
Chris Walton:I didn't even know you could already do that.
Chris Walton:So then the operational dynamics probably are a lot less than I was expecting.
Chris Walton:Although I imagine there is some increased cost or operational effect to this.
Speaker A:But, yeah, if people do it.
Speaker A:I mean, that's the thing, too.
Speaker A:Like, I think this is so overblown of, like.
Chris Walton:Well, you could.
Chris Walton:You could.
Chris Walton:You could force the question, though, at the cashier.
Chris Walton:Would you like that in a ceramic cup?
Chris Walton:Or would you like that in a takeaway cup?
Chris Walton:And.
Chris Walton:And you know what?
Chris Walton:If I'm sitting there, I'm getting a ceramic cup.
Chris Walton:Yeah, for sure.
Chris Walton:I think I am.
Speaker A:You should.
Speaker A:You should do that now.
Chris Walton:100.
Chris Walton:100.
Chris Walton:100.
Chris Walton:Because my coffee tastes better in ceramics, and everyone knows that.
Chris Walton:Come on.
Chris Walton:All right, but what do you think?
Chris Walton:What do you think?
Chris Walton:Are you going to throw shade on Mr.
Chris Walton:Nichols?
Chris Walton:Are you going to jump on board this gravy train?
Chris Walton:What do you think?
Speaker A:Listen, Brian Nichols for president.
Speaker A:Like, that really has somehow.
Speaker A:Well, I mean, look at what he's done.
Speaker A:He's taken.
Speaker A:You and I, we are on opposing sides of this argument, and he's giving everybody a little bit of what they want, from the baristas to the customers.
Speaker A:Like, somehow you get your coffee house, except experience when you want it.
Speaker A:Like, everybody's gonna be.
Speaker A:Everybody's lives are gonna be better because those.
Speaker A:The Starbucks are gonna be hopefully nicer.
Speaker A:And if they're really investing in this, like, coffee house experience, I get my drink Made in less than four minutes, which is all that I want.
Speaker A:I want faster operations.
Speaker A:I want to get that drink as quickly as possible with as few hands touching it as possible.
Speaker A:I just want the same consistent coffee all the time.
Speaker A:And now dairy free customers get the 10% price reduction in their coffee.
Speaker A:Like this is amazing.
Speaker A:He's doing everything for everyone.
Speaker A:And I do think like you were talking about earlier, like does he have the chops or is it possible to really start to get that, get to that under four minute process and the guys from Chipotle like he knows how to automate things and cut out things that are not working or that are holding up the system.
Speaker A:So I think that we'll see a lot of great things come if, if they can be successful in, in really giving every single person what they want in this situation.
Speaker A:I don't care if you want, you can hang out at the Starbucks all you want.
Speaker A:I just want my coffee fast.
Chris Walton:Yeah, and he, yeah and he's already doing the four minute thing because making the customers pour in their own, you know, you know, dairy or dairy substitutes at the condiment bar, that definitely is going to speed up the process too as well.
Chris Walton:Also there's a couple other points that I love.
Chris Walton:The four minutes thing just as a leadership thing.
Chris Walton:It's easy to rally around.
Chris Walton:It's, it's an easy metric to get everyone behind and it makes sense.
Chris Walton:So that from a leadership standpoint is really cool.
Chris Walton:The other point too, he's also, we didn't talk about this in the headline but he, he's, he simplified the product line.
Chris Walton:He got rid of the rumored to be dysentery driving Otto line.
Chris Walton:Right.
Chris Walton:So like yeah, that, that's now gone.
Chris Walton:And I don't miss that.
Chris Walton:I don't know about you, but I don't miss it.
Chris Walton:And so especially given those rumors.
Chris Walton:So like, you know, I think that makes sense.
Chris Walton:And then I wonder what further, you know, menu reductions are going to come out of this too down the, down the road.
Chris Walton:So, so you're in, you're liking this?
Speaker A:Yeah, no, I think he did.
Speaker A:I think he's doing a great job.
Speaker A:I think, I think he's coming in and doing exactly what he should be doing and what they brought him in to do.
Speaker A:Really like they, they, there's a reason they took him and they're taking more people from Chipotle to, to kind of take the turnaround that that team was able to do for Chipotle and start doing it for Starbucks because they need it.
Speaker A:Especially when you start Talking about markets outside the U.S.
Speaker A:like China, where they're just getting killed by Luckin Coffee and some of these other players that are coming in now to the US too.
Speaker A:So they gotta get, they gotta get their, their poop in a group, you.
Chris Walton:Know, and, and the only.
Chris Walton:I don't think is a signal too, from a leadership standpoint, because that was Howard Schultz's baby.
Chris Walton:And he's basically like, nope, we're done.
Chris Walton:We're not doing that anymore.
Chris Walton:I don't care.
Chris Walton:And so that, that's cool.
Chris Walton:I like it.
Chris Walton:I like it.
Chris Walton:All right, we'll see how it goes.
Chris Walton:Could be a big fanboy coming up here, Anne.
Speaker A:He could be CEO of the year.
Speaker A:Doug McMillan.
Speaker A:You may.
Chris Walton:No, never, Never, never, never.
Chris Walton:That's never happening.
Chris Walton:And that's never going to happen.
Chris Walton:Never going to happen in my book.
Chris Walton:And.
Speaker A:Okay, all right, let's get.
Speaker A:Let's go to the lightning round.
Speaker A:Chris, as we mentioned, as of tomorrow, Starbucks is eliminating the extra charge for milk alternatives, which will cost the coffee giant an estimated $1 billion a year and save its customers 10% off their drinks.
Speaker A:What non dairy drink will you be getting to celebrate it?
Chris Walton:Ooh, and easy, easy, easy.
Chris Walton:Iced coffee.
Chris Walton:Grande iced coffee with a splash of coconut milk.
Chris Walton:That's what I'm gonna do.
Chris Walton:I'm gonna put a splash of coconut milk.
Speaker A:So you're not even gonna make the barista put the non dairy milk in.
Speaker A:You're gonna do it.
Chris Walton:Splash the coconut.
Chris Walton:And splash the coconut.
Chris Walton:That's what I'm gonna do myself at the condiment bar.
Chris Walton:Yes.
Chris Walton:And, and probably make a huge mess because, you know, I have a history of spilling coffee everywhere I go, especially on expensive rugs at Friends of Ours Place of business.
Chris Walton:All right, Topps, the famed baseball card maker is partnering with the Westminster Kennel Club to release a line of cards named Stars of the show, which feature champion pooches from the names of.
Chris Walton:With the names of, like, Sage the Miniature Poodle to Trumpet the Blood.
Chris Walton:Those are real names.
Chris Walton:And what breed of pooch would you most want in the first pack of Stars of the show that you opened?
Speaker A:Okay, I guess a mini Goldendoodle, like for my little kid who loves, like, he'll probably be.
Speaker A:We're gonna have so many of these dog baseball cards in our lives in no time.
Speaker A:I just know it.
Speaker A:He loves so much.
Chris Walton:So what.
Chris Walton:What would said name of mini Golden Doodle be?
Chris Walton:And do you have that picked out yet as well?
Chris Walton:I'm curious.
Chris Walton:I don't want to put you on the spot, but I Feel like it's an appropriate question, dog dawg.
Chris Walton:All right.
Chris Walton:Yes, yes.
Chris Walton:Yeah, that actually makes sense.
Chris Walton:I like that.
Chris Walton:I like that for you.
Speaker A:Oh, God.
Speaker A:All right, Chris.
Speaker A:Last weekend's SNL featured Pete Davidson purchasing a questionable gallon of milk set in a cooler among room temperature.
Speaker A:Any drinks?
Speaker A:Energy drinks from the Duane Reed at the Port Authority Bus Station.
Speaker A:Chris, what is the Chris Walton equivalent of buying milk from the Duane Read at the Port Authority Bus station?
Chris Walton:Oh, my God.
Chris Walton:Oh, this one's so easy for me.
Chris Walton:And I once bought a hot dog off a roller from the downtown Minneapolis target at like 2:30 in the afternoon.
Chris Walton:Oh, I did it once and I will never, ever do it again.
Chris Walton:In fact, Anne, I will never eat a hot dog again.
Chris Walton:I swear to God.
Chris Walton:I've not had a hot dog since.
Chris Walton:I will not eat hot dogs.
Speaker A:Why?
Speaker A:Why did you eat it?
Speaker A:Why would you choose that?
Speaker A:You're.
Chris Walton:I.
Speaker A:Was there another option?
Chris Walton:I was craving hot dogs for some weird reason because I don't even generally like hot dogs, but I was craving it.
Speaker A:Yeah.
Chris Walton:So I knew where I could get when I was working downtown on a Saturday, which tells you a little bit about me and my personality.
Chris Walton:And I decided to go get a hot dog off the roller and.
Chris Walton:Yeah, no, I can never, ever, ever go back.
Chris Walton:And it was.
Chris Walton:It was not a good experience.
Chris Walton:So that is my.
Chris Walton:That is my buying milk from the Duane Reade at the Port Authority Bus Station analogy.
Speaker A:No, thank you.
Chris Walton:I know, right?
Chris Walton:All right, last one.
Chris Walton:A new Oregon Trail action comedy movie is in development at Apple.
Chris Walton:And I don't.
Chris Walton:Did you play Oregon Trail?
Chris Walton:And I'm curious, what was your favorite part about playing it as a kid?
Speaker A:I was just.
Speaker A:When I was like.
Speaker A:If I think about Oregon Trail, I remember like the beep, beep, beep, you know, where, like, your carriage is slowly on the green screen, black and green screen, like going into the river and then you are dead.
Speaker A:You've drowned.
Speaker A:This is over the river.
Chris Walton:Yeah, that was the part I remember too, the river part.
Chris Walton:Like when you're fording the stream, right?
Speaker A:That's what, like.
Chris Walton:Yeah, yeah.
Speaker A:So you have to be like, what are you gonna get rid of in your cart?
Speaker A:What are you gonna leave behind?
Speaker A:What animals are you gonna leave behind so that you can float across the stream and we always drown.
Chris Walton:Yeah, that.
Chris Walton:That and dysentery.
Chris Walton:The second dysentery drop of the show, Ed.
Chris Walton:That was the other thing I remember.
Chris Walton:I always died of dysentery, you know, and.
Chris Walton:And had to go out hunting and shooting little squirrels.
Chris Walton:And stuff.
Chris Walton:I think that's what.
Speaker A:Now we know what dysentery is.
Speaker A:You know, we can thank Oregon Trail in our childhood for that, right?
Chris Walton:Yes.
Chris Walton:And it's really the only time I ever use that word, so it's probably why it was top of mind before.
Chris Walton:All right, happy birthday today to Emma Stone, Ethan Hawke, and to the most miscast movie athlete of all time, Wiley Wiggins of Dazed and Confused.
Chris Walton:Do you remember him from Dazed and Confused?
Chris Walton:Yes, I do.
Chris Walton:Oh my God, you do.
Chris Walton:Wow.
Chris Walton:All right.
Chris Walton:I remember.
Chris Walton:If you could only read or listen to.
Speaker A:I didn't know Wiley Wiggins, but Wiley Wiggins.
Speaker A:Yeah, yeah.
Speaker A:But Daisy, what's his name?
Chris Walton:Was it Mitch?
Chris Walton:Feel like his Mitch?
Chris Walton:I don't know.
Chris Walton:I gotta look that up.
Chris Walton:Stay tuned, Omnitalk fans.
Chris Walton:I will follow up with that.
Chris Walton:And remember, if you can only read or listen to one retail blog in the business, make it Omnitalk only retail media outlet run by two former executives from a current top 10 US retailer.
Chris Walton:Our Fast Five podcast is the quickest, fastest rundown of all the week's top news in our daily newsletter.
Chris Walton:The Retail Daily Minute tells you all you need to know each day to stay on top of your game as a retail executive and also regularly features special content that is exclusive to us and that Ann and I take great pride in doing just for you.
Chris Walton:Thanks as always for listening in.
Chris Walton:Please remember to like and leave us a review wherever you happen to listen to your podcast or on YouTube.
Chris Walton:You can follow us today by simply going to YouTube.com omnietalkretail and watching us on video is the best way to understand the dynamic and divide between Ann and myself.
Chris Walton:So until next week, on behalf of all of us at Omnitalk Retail, on behalf of Ann and myself, as always, be careful out there.
