1 00:00:02,520 --> 00:00:09,119 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. All Right, Brian, congratulations 2 00:00:09,160 --> 00:00:12,480 Speaker 1: on the recent quarter. Obviously, investors I had been looking 3 00:00:12,520 --> 00:00:14,800 Speaker 1: for some sort of sense that there would be a 4 00:00:14,840 --> 00:00:17,440 Speaker 1: return to growth under your leadership in the thirteen months 5 00:00:17,440 --> 00:00:19,640 Speaker 1: that you've been on the job one percent on the 6 00:00:19,680 --> 00:00:22,919 Speaker 1: same store sales basis. Do you have confidence that the 7 00:00:22,920 --> 00:00:26,120 Speaker 1: performance that you saw in your physical fourth quarter is 8 00:00:26,160 --> 00:00:28,400 Speaker 1: not only going to be repeatable, but more importantly something 9 00:00:28,400 --> 00:00:30,960 Speaker 1: that you can build on for the current quarter and beyond. 10 00:00:32,440 --> 00:00:36,400 Speaker 2: Yeah, Rollian, great to be here, and absolutely we believe 11 00:00:36,840 --> 00:00:39,599 Speaker 2: this was a critical moment in our turnaround plan of 12 00:00:40,000 --> 00:00:41,560 Speaker 2: the back to Starbucks strategy. 13 00:00:42,159 --> 00:00:43,680 Speaker 3: You know, it was great to see. 14 00:00:44,040 --> 00:00:47,280 Speaker 2: Once we got the green Apron service standard into the business, 15 00:00:48,040 --> 00:00:50,559 Speaker 2: we saw a lot of really good things happen, you know, 16 00:00:50,680 --> 00:00:54,320 Speaker 2: most specifically, our partners were set up with bigger rosters, 17 00:00:54,480 --> 00:00:57,640 Speaker 2: more hours, and they were able to give customers better connection, 18 00:00:58,440 --> 00:01:03,360 Speaker 2: great craft products, which then translated into transaction increases. 19 00:01:03,840 --> 00:01:05,120 Speaker 3: As you saw in September. 20 00:01:05,440 --> 00:01:09,400 Speaker 2: We have positive comps driven by those transaction gains that 21 00:01:09,480 --> 00:01:12,319 Speaker 2: continued into October, and we believe we can build from 22 00:01:12,360 --> 00:01:15,759 Speaker 2: here because we've got a strong operational footing and really 23 00:01:15,800 --> 00:01:17,600 Speaker 2: excited about what we've got coming for holiday. 24 00:01:17,720 --> 00:01:19,080 Speaker 3: So we think it was a. 25 00:01:19,080 --> 00:01:21,640 Speaker 2: Critical moment in the fourth quarter for the turnaround of 26 00:01:21,680 --> 00:01:24,240 Speaker 2: the US business. And when you think about North America, 27 00:01:24,280 --> 00:01:26,880 Speaker 2: the thing that's great is Canada had a great quarter 28 00:01:26,959 --> 00:01:27,280 Speaker 2: as well. 29 00:01:27,360 --> 00:01:29,680 Speaker 3: They were low mid single digit. 30 00:01:29,480 --> 00:01:32,800 Speaker 2: COMP growth driven by transactions as well, and they've done 31 00:01:32,800 --> 00:01:34,959 Speaker 2: a really great job there. And then when you look 32 00:01:35,000 --> 00:01:39,000 Speaker 2: around the world, we had terrific successes in many markets, 33 00:01:39,319 --> 00:01:42,319 Speaker 2: and most notably China had its second consecutive quarter of 34 00:01:42,360 --> 00:01:45,720 Speaker 2: comp growth. So it was a critical moment for us, 35 00:01:45,800 --> 00:01:47,600 Speaker 2: and we're optimistic about where we go from here. 36 00:01:47,720 --> 00:01:50,120 Speaker 1: You've put a lot of emphasis on service. Obviously with 37 00:01:50,200 --> 00:01:52,280 Speaker 1: the Green Apron project. What does that look like in 38 00:01:52,360 --> 00:01:54,560 Speaker 1: terms of US staffing though, I mean, you obviously have 39 00:01:54,600 --> 00:01:56,880 Speaker 1: to hire more people, but more importantly, you have to 40 00:01:56,880 --> 00:02:00,160 Speaker 1: retrain a lot of your existing staff as well. I 41 00:02:00,160 --> 00:02:02,440 Speaker 1: guess receptive have they been to that and have you 42 00:02:02,480 --> 00:02:03,400 Speaker 1: faced any challenges? 43 00:02:04,440 --> 00:02:06,200 Speaker 3: You know, I got to give our partners a lot 44 00:02:06,200 --> 00:02:06,680 Speaker 3: of credit. 45 00:02:06,800 --> 00:02:10,960 Speaker 2: They really have embraced both the back to Starbucks strategy 46 00:02:11,360 --> 00:02:15,280 Speaker 2: and the Green Apron service standard. And when I'm in stores, 47 00:02:16,280 --> 00:02:17,960 Speaker 2: you know, what I hear from folks is. 48 00:02:17,919 --> 00:02:18,520 Speaker 3: Like thank you. 49 00:02:18,560 --> 00:02:22,400 Speaker 2: We're getting back to being a great coffeehouse again. Our 50 00:02:22,440 --> 00:02:26,240 Speaker 2: baristas and partners, they love doing the craft. They love 51 00:02:26,480 --> 00:02:29,080 Speaker 2: having the moments of connection with our customers, and our 52 00:02:29,080 --> 00:02:31,440 Speaker 2: customers love it as well. And so the fact that 53 00:02:31,480 --> 00:02:34,360 Speaker 2: we've staffed the stores up and we've added more people, 54 00:02:34,400 --> 00:02:37,600 Speaker 2: we've added more hours, it actually has set them up 55 00:02:37,639 --> 00:02:40,560 Speaker 2: to be able to do their job I think with excellence. 56 00:02:40,639 --> 00:02:43,160 Speaker 2: And you know, it's always terrific to be able to 57 00:02:43,240 --> 00:02:45,720 Speaker 2: hire more people. And when you've got great leaders in 58 00:02:45,760 --> 00:02:48,200 Speaker 2: the stores, they're able to train the new people, I think, 59 00:02:48,240 --> 00:02:51,040 Speaker 2: really quickly. And we've tried to keep this very focused 60 00:02:51,080 --> 00:02:53,239 Speaker 2: on what we're looking for, right. We want a great 61 00:02:53,280 --> 00:02:55,600 Speaker 2: greeting when people walk in. We want a great experience 62 00:02:55,639 --> 00:02:58,240 Speaker 2: at the handoff. We're working on doing these uplifts so 63 00:02:58,240 --> 00:03:00,120 Speaker 2: then our customers have great seats if they just I 64 00:03:00,120 --> 00:03:03,000 Speaker 2: had to stay. And we've put some technology in behind 65 00:03:03,040 --> 00:03:06,240 Speaker 2: the scenes to help put order to all those orders 66 00:03:06,240 --> 00:03:09,080 Speaker 2: coming in, whether it's through the drive through, mobile order 67 00:03:09,320 --> 00:03:12,680 Speaker 2: or in the cafe. So you know, we're seeing great 68 00:03:12,720 --> 00:03:15,440 Speaker 2: responses from our partners, and I couldn't be prouder of 69 00:03:15,440 --> 00:03:16,640 Speaker 2: the progress they've made. 70 00:03:16,680 --> 00:03:18,440 Speaker 3: In really short order. You know, we've only been doing 71 00:03:18,440 --> 00:03:19,600 Speaker 3: this since the middle of August. 72 00:03:19,680 --> 00:03:23,120 Speaker 1: Yeah, And with regards to the actual physical Starbucks locations, 73 00:03:23,160 --> 00:03:24,440 Speaker 1: I mean, there are a lot of layers to what 74 00:03:24,440 --> 00:03:26,639 Speaker 1: you're doing here. Of one, obviously trying to make the 75 00:03:27,880 --> 00:03:30,760 Speaker 1: interior is a little bit more accommodating and comfortable, but 76 00:03:30,800 --> 00:03:33,520 Speaker 1: at the same time also efficient. You're also looking to 77 00:03:33,520 --> 00:03:36,600 Speaker 1: sort of create more I guess lower cost models for 78 00:03:36,720 --> 00:03:39,280 Speaker 1: building and operating some of these locations. Are those two 79 00:03:39,320 --> 00:03:41,640 Speaker 1: in conflict with each other those strategies. 80 00:03:42,080 --> 00:03:44,000 Speaker 3: No, Actually, they can work really well together. 81 00:03:44,040 --> 00:03:46,600 Speaker 2: You can have great design, you can have a great seat, 82 00:03:46,720 --> 00:03:49,040 Speaker 2: you can have a great atmosphere, and then also be 83 00:03:49,160 --> 00:03:51,680 Speaker 2: very cost conscious. And that's what we're doing here, is 84 00:03:51,680 --> 00:03:54,920 Speaker 2: we want to make sure all our base costs go 85 00:03:55,040 --> 00:03:57,840 Speaker 2: into giving the partner the back of house they need 86 00:03:57,880 --> 00:04:00,760 Speaker 2: to be successful, and then the customer the front of 87 00:04:00,760 --> 00:04:03,280 Speaker 2: house experience where they love being in our coffee houses. 88 00:04:03,600 --> 00:04:06,200 Speaker 2: And so that's what we're doing these coffee house uplifts. 89 00:04:06,200 --> 00:04:08,480 Speaker 2: We're able to turn these around in a night or two. 90 00:04:08,760 --> 00:04:11,400 Speaker 2: We don't have to close the store, and the transformation 91 00:04:11,520 --> 00:04:14,080 Speaker 2: is meaningful. You know, the feedback we're getting from customers 92 00:04:14,520 --> 00:04:17,640 Speaker 2: is really, really positive, both on the design as well 93 00:04:17,680 --> 00:04:20,159 Speaker 2: as just the whole atmosphere, the vibe that they're getting. 94 00:04:20,200 --> 00:04:23,000 Speaker 2: And I think the combination of the green Apron service 95 00:04:23,400 --> 00:04:26,919 Speaker 2: with this coffee house uplift just really gets people to 96 00:04:27,040 --> 00:04:29,640 Speaker 2: a different place and they believe now they're getting that 97 00:04:29,680 --> 00:04:32,800 Speaker 2: Starbucks experience that frankly, you don't get anywhere else. 98 00:04:33,480 --> 00:04:36,560 Speaker 1: How much will the pace of those uplifts pick up? 99 00:04:36,600 --> 00:04:38,680 Speaker 1: I mean you've only done a few dozen stores at 100 00:04:38,720 --> 00:04:41,360 Speaker 1: least in the most recent quarter here. I mean you've 101 00:04:41,400 --> 00:04:44,600 Speaker 1: got more than ten thousand company operated locations right here 102 00:04:44,600 --> 00:04:47,000 Speaker 1: in North America. So when do we start to see 103 00:04:47,120 --> 00:04:49,760 Speaker 1: the other thousands of locations, I'll get that uplift. 104 00:04:50,680 --> 00:04:50,920 Speaker 3: Yeah. 105 00:04:50,960 --> 00:04:54,080 Speaker 2: So we've done about seventy so far, and we are 106 00:04:54,120 --> 00:04:57,560 Speaker 2: focused on this fiscal year getting over a thousand done. 107 00:04:57,880 --> 00:05:00,000 Speaker 2: And the good news is, once we get that scale 108 00:05:00,279 --> 00:05:03,480 Speaker 2: operation going, we build know how, we will be able 109 00:05:03,520 --> 00:05:08,200 Speaker 2: to then hopefully accelerate the build schedule accordingly into the 110 00:05:08,200 --> 00:05:10,440 Speaker 2: out years because we would love to touch all the 111 00:05:10,480 --> 00:05:13,080 Speaker 2: stores that need it. And then the good news is too, 112 00:05:13,120 --> 00:05:15,640 Speaker 2: as we build new stores going forward, we're building the 113 00:05:15,680 --> 00:05:16,680 Speaker 2: new stores. 114 00:05:16,440 --> 00:05:18,800 Speaker 3: With the right design package, the right experience. 115 00:05:18,880 --> 00:05:21,719 Speaker 2: So we have some work to do with our existing 116 00:05:22,080 --> 00:05:25,400 Speaker 2: coffee houses, but I'm optimistic we will demonstrate that we're 117 00:05:25,400 --> 00:05:27,640 Speaker 2: able to do this at scale, and then we'll build 118 00:05:27,680 --> 00:05:30,040 Speaker 2: on our ability to do thousands of stores going forward. 119 00:05:30,240 --> 00:05:31,960 Speaker 1: There is still cost involved in this. You had a 120 00:05:32,000 --> 00:05:34,679 Speaker 1: restructuring charge in the most recent quarter. The sales growth 121 00:05:34,760 --> 00:05:37,159 Speaker 1: is coming back, there are still some concerns about where 122 00:05:37,160 --> 00:05:40,440 Speaker 1: the margins could be under pressure as you go through 123 00:05:40,440 --> 00:05:43,120 Speaker 1: this transition. What do you tell investors who asked that question. 124 00:05:44,279 --> 00:05:47,960 Speaker 2: Yeah, Look, I think the margins will follow the top 125 00:05:48,000 --> 00:05:51,080 Speaker 2: line success, and I see no reason why we can't 126 00:05:51,120 --> 00:05:54,360 Speaker 2: get back to earning what we used to earn. 127 00:05:54,960 --> 00:05:55,919 Speaker 3: Even pre COVID. 128 00:05:56,000 --> 00:05:59,120 Speaker 2: So I'm very optimistic for where we can get to 129 00:05:59,240 --> 00:06:01,200 Speaker 2: on the bottom line. You know, kind of the way 130 00:06:01,240 --> 00:06:03,200 Speaker 2: we've talked about it is our future is we're going 131 00:06:03,240 --> 00:06:06,880 Speaker 2: to have more transactions, a bigger business, and every transaction 132 00:06:06,960 --> 00:06:09,120 Speaker 2: is going to be more profitable than it currently is today. 133 00:06:09,520 --> 00:06:11,640 Speaker 2: I love the fact that our culture has really adopted 134 00:06:11,640 --> 00:06:13,520 Speaker 2: this mantra of we're going to be better tomorrow than 135 00:06:13,560 --> 00:06:15,520 Speaker 2: we were today, and the same thing is true on 136 00:06:15,560 --> 00:06:18,520 Speaker 2: the bottom line. So that's where we're headed, and I'm 137 00:06:18,520 --> 00:06:21,480 Speaker 2: confident as we continue to put transactions into the business. 138 00:06:21,960 --> 00:06:25,520 Speaker 2: Customers continue to experience the Starbucks experience, they see the 139 00:06:25,560 --> 00:06:28,440 Speaker 2: tremendous value, it will flow to. 140 00:06:28,400 --> 00:06:30,919 Speaker 3: The bottom line, and it'll reward everybody. 141 00:06:30,920 --> 00:06:34,480 Speaker 1: Accordingly, you seem confident, you seem optimistic. I am curious 142 00:06:34,560 --> 00:06:39,280 Speaker 1: as to why you didn't feel it was appropriate yesterday 143 00:06:39,320 --> 00:06:42,760 Speaker 1: with regards to the earnings releasing the call to reinstate 144 00:06:42,880 --> 00:06:45,880 Speaker 1: some sort of guidance. I know your CFO Kathy Smith 145 00:06:45,880 --> 00:06:48,080 Speaker 1: said you would probably do that in January at an 146 00:06:48,080 --> 00:06:49,760 Speaker 1: investor day, but why not now? 147 00:06:50,920 --> 00:06:53,880 Speaker 2: You know, we basically believe we want to do it 148 00:06:53,920 --> 00:06:55,880 Speaker 2: at the investor day so that we can give people 149 00:06:55,920 --> 00:06:58,839 Speaker 2: a comprehensive look of where we're going, not just for 150 00:06:58,920 --> 00:07:01,720 Speaker 2: the fiscal year twenty SI, but rather a long term 151 00:07:01,760 --> 00:07:04,640 Speaker 2: look on how we're resetting this business up for success. 152 00:07:05,560 --> 00:07:08,279 Speaker 2: I believe the reason why I'm here, why our leadership 153 00:07:08,279 --> 00:07:11,880 Speaker 2: team is here, is not about what happens next week 154 00:07:11,960 --> 00:07:14,400 Speaker 2: or frankly next month. It is about where we are 155 00:07:14,440 --> 00:07:17,040 Speaker 2: three years from now. So I'm optimistical about what's going 156 00:07:17,040 --> 00:07:18,600 Speaker 2: to happen in the short term, but we want to 157 00:07:18,680 --> 00:07:21,080 Speaker 2: use this investor day to really give people guidance on 158 00:07:21,120 --> 00:07:23,720 Speaker 2: where we see this business growing in the future. So 159 00:07:24,320 --> 00:07:26,880 Speaker 2: we'll see everybody in late January, and I think we've 160 00:07:26,880 --> 00:07:29,320 Speaker 2: got a great story to share with people, and I 161 00:07:29,320 --> 00:07:30,520 Speaker 2: look forward to seeing people there. 162 00:07:30,760 --> 00:07:33,760 Speaker 1: I want to talk about the coffee and the food. Obviously, 163 00:07:34,120 --> 00:07:37,040 Speaker 1: one of the biggest buzz right now around Starbucks is 164 00:07:37,040 --> 00:07:39,160 Speaker 1: to add on foam protein. 165 00:07:39,760 --> 00:07:40,480 Speaker 3: I am curious. 166 00:07:40,520 --> 00:07:43,280 Speaker 1: I mean, obviously it's in the zeitdece but is there 167 00:07:43,320 --> 00:07:45,720 Speaker 1: any way you can articulate whether it's actually been a 168 00:07:45,720 --> 00:07:48,160 Speaker 1: cretive with regards to sales and the bottom line. I mean, 169 00:07:48,200 --> 00:07:51,200 Speaker 1: what do transactions look like for those protein drinks. 170 00:07:52,160 --> 00:07:55,320 Speaker 2: Yeah, so we're early days in the protein platform, but 171 00:07:55,440 --> 00:07:59,000 Speaker 2: it's proving to be very incremental, which is terrific to see. 172 00:07:59,600 --> 00:08:03,400 Speaker 2: One of the best early indicators is our rewards. Customers 173 00:08:03,800 --> 00:08:07,160 Speaker 2: that had some low frequency, we're seeing their frequency pick up. 174 00:08:07,800 --> 00:08:11,240 Speaker 2: We're also seeing our awareness build. And as the awareness 175 00:08:11,280 --> 00:08:13,880 Speaker 2: builds and we see people try whether it's a protein 176 00:08:13,920 --> 00:08:18,680 Speaker 2: cold foam or the protein latte execution, we see them 177 00:08:18,680 --> 00:08:21,360 Speaker 2: actually loving it and coming back and doing it more often, 178 00:08:21,480 --> 00:08:24,040 Speaker 2: and in some cases even doing it in the afternoon, 179 00:08:24,320 --> 00:08:26,080 Speaker 2: so they may get a different experience in the morning 180 00:08:26,080 --> 00:08:27,760 Speaker 2: and then they come in the afternoon and get the 181 00:08:27,800 --> 00:08:32,760 Speaker 2: protein latte solutions. So we're looking really promising on this 182 00:08:32,840 --> 00:08:36,320 Speaker 2: protein platform. Obviously we'll learn a lot, we'll listen to 183 00:08:36,320 --> 00:08:39,400 Speaker 2: what customers say. But I love the fact that over 184 00:08:39,480 --> 00:08:42,440 Speaker 2: ninety percent of the drinks now you can get protein added, 185 00:08:42,440 --> 00:08:45,080 Speaker 2: and it's very much on trend with how people want 186 00:08:45,080 --> 00:08:48,400 Speaker 2: to eat and drink, and so look, I think this 187 00:08:48,440 --> 00:08:50,520 Speaker 2: is a piece of Starbucks getting into the right health 188 00:08:50,520 --> 00:08:54,480 Speaker 2: and wellness frame of reference and then also giving customers 189 00:08:54,480 --> 00:08:56,439 Speaker 2: the personalization that they want around protein. 190 00:08:56,679 --> 00:08:59,560 Speaker 1: I am curious about price, particularly in light of some 191 00:09:00,080 --> 00:09:03,239 Speaker 1: upstart competitors that have come into this space like Dutch Bros. 192 00:09:03,840 --> 00:09:06,640 Speaker 1: As well as Seven Brew, Lucking Coffee, and a few 193 00:09:06,640 --> 00:09:09,120 Speaker 1: others here. Do you feel like you need to compete 194 00:09:09,480 --> 00:09:11,640 Speaker 1: with those names on price or can you sort of 195 00:09:11,679 --> 00:09:16,480 Speaker 1: maintain this sort of a relative premium or luxury model 196 00:09:16,600 --> 00:09:19,040 Speaker 1: that I think Starbucks has had a perception of being. 197 00:09:20,640 --> 00:09:24,040 Speaker 2: Yeah, Look, we're always going to compete, okay, And one 198 00:09:24,040 --> 00:09:26,160 Speaker 2: of the things that I love is we're competing from 199 00:09:26,160 --> 00:09:29,400 Speaker 2: a position of strength, and that strength comes from the 200 00:09:29,400 --> 00:09:31,920 Speaker 2: fact that one thing I like to remind people is 201 00:09:32,120 --> 00:09:35,880 Speaker 2: we are the biggest coffee drive through business. We are 202 00:09:35,920 --> 00:09:39,839 Speaker 2: the biggest mobile order or digital coffee business. Now I 203 00:09:39,880 --> 00:09:42,679 Speaker 2: think we're also the biggest delivery coffee business, and then 204 00:09:42,920 --> 00:09:46,360 Speaker 2: obviously we are the biggest cafe coffee business. And when 205 00:09:46,400 --> 00:09:52,439 Speaker 2: we provide people the experience, meaning the connection, the community aspect, 206 00:09:52,679 --> 00:09:56,040 Speaker 2: the humanity of Starbucks combined with the craft of our 207 00:09:56,080 --> 00:10:00,600 Speaker 2: coffee and the personalization, we see customers saying this is 208 00:10:00,760 --> 00:10:03,480 Speaker 2: tremendous value and it is well worth it. And so 209 00:10:04,080 --> 00:10:05,920 Speaker 2: I always say to our team, we have to be 210 00:10:05,960 --> 00:10:08,400 Speaker 2: on the offense. We have to recognize the scale that 211 00:10:08,440 --> 00:10:10,680 Speaker 2: we have, and then we have to do the customer 212 00:10:10,840 --> 00:10:13,920 Speaker 2: experience better than anybody else. And we are, after being 213 00:10:13,960 --> 00:10:16,520 Speaker 2: the world's greatest customer service company, and I think that's 214 00:10:16,520 --> 00:10:20,760 Speaker 2: a place of strength when you compare a lot of 215 00:10:20,800 --> 00:10:23,199 Speaker 2: the other competitors that you mentioned before I let you. 216 00:10:23,120 --> 00:10:24,400 Speaker 1: Go, Brian, I do want to ask you a little 217 00:10:24,440 --> 00:10:28,000 Speaker 1: bit more about international strategy, particularly with regards to China. 218 00:10:28,080 --> 00:10:30,839 Speaker 1: Starbucks is at a footprint there since at least the 219 00:10:30,920 --> 00:10:34,679 Speaker 1: late nineteen nineties. Bloomberg reported this week that you are 220 00:10:34,679 --> 00:10:37,280 Speaker 1: close to finalizing the deal for a partnership with a 221 00:10:37,280 --> 00:10:40,040 Speaker 1: private equity firm that would allow you to expand your 222 00:10:40,040 --> 00:10:44,120 Speaker 1: footprint in China even further. How much further do you 223 00:10:44,160 --> 00:10:46,240 Speaker 1: want to go with that and how far along are 224 00:10:46,280 --> 00:10:47,840 Speaker 1: you in sealing that partnership. 225 00:10:48,960 --> 00:10:49,200 Speaker 3: Yeah. 226 00:10:49,240 --> 00:10:51,480 Speaker 2: Look, I'm really excited for our China business. You know, 227 00:10:51,480 --> 00:10:54,520 Speaker 2: they've had two consecutive quarters of comp growth. The team, 228 00:10:54,600 --> 00:10:56,520 Speaker 2: I think is really doing a great job of listening 229 00:10:56,600 --> 00:10:59,480 Speaker 2: to customers, reacting and building on the strength of the 230 00:10:59,480 --> 00:11:02,480 Speaker 2: Starbucks brand as it relates to finding a partner for 231 00:11:02,520 --> 00:11:05,920 Speaker 2: our China business. This process I think is really I 232 00:11:05,920 --> 00:11:08,720 Speaker 2: think validated what I knew, which is China is a 233 00:11:08,760 --> 00:11:13,679 Speaker 2: tremendous growth opportunity. And the process is also demonstrated to 234 00:11:13,760 --> 00:11:17,560 Speaker 2: us that the partners that we were fortunate that came 235 00:11:17,559 --> 00:11:21,400 Speaker 2: to the table are excited about getting this brand to 236 00:11:21,440 --> 00:11:24,720 Speaker 2: go from eight thousand stores to fifteen twenty thousand stores, 237 00:11:25,160 --> 00:11:26,480 Speaker 2: and their expertise is. 238 00:11:26,600 --> 00:11:27,800 Speaker 3: In the local China market. 239 00:11:27,800 --> 00:11:29,800 Speaker 2: I think it's going to help our team get into 240 00:11:29,800 --> 00:11:32,840 Speaker 2: those Tier three, four or five cities faster and with 241 00:11:32,880 --> 00:11:35,200 Speaker 2: the right execution so that we are able to build 242 00:11:35,200 --> 00:11:39,040 Speaker 2: on this positive momentum that we have. So I'm looking 243 00:11:39,080 --> 00:11:41,839 Speaker 2: forward to wrapping up the process and I'm looking forward 244 00:11:41,840 --> 00:11:44,720 Speaker 2: to our China team being one hundred percent focused on 245 00:11:44,800 --> 00:11:47,560 Speaker 2: just growing that business into the future in a big way. 246 00:11:47,720 --> 00:11:50,080 Speaker 1: You think wrapping up that process will happen before the 247 00:11:50,120 --> 00:11:52,319 Speaker 1: investor day in January. 248 00:11:52,400 --> 00:11:54,280 Speaker 2: You know, you never know on the timing on these things, 249 00:11:54,320 --> 00:11:58,720 Speaker 2: but you know, I love the partners that we're working with, 250 00:11:59,040 --> 00:12:01,040 Speaker 2: and I'm optimistic that we're going to get this deal 251 00:12:01,120 --> 00:12:02,920 Speaker 2: done in the not too distant future.