Over the years, there have been more than a few flash points of trouble for coffee giant Starbucks (NASDAQ:SBUX). Political affiliations, union troubles, labor troubles, and even who’s using the bathroom have proven to be problematic. Now, there’s a new potential trouble point: reusable cups. And Starbucks is down fractionally in the closing minutes of Friday’s session as a result. So, how in the world can reusable cups possibly be hurting Starbucks? The notion is only recent, as Starbucks announced that it would allow customers to start using their own personal cups when ordering at Starbucks.
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Whether in-store, through the app, or at the drive-through window, it’s available at every company-owned and licensed store. Bringing your own cup will save you $0.10 on the order, a move to help reduce waste, but also one that’s likely to increase wait times as the process could be an “operational disaster.” Users provide their cups, which Starbucks staff places in a “contactless vessel.” Apparently, that vessel keeps the cup clean. The cup is then filled and returned.
Is Disaster Afoot?
For Jon Tower, a restaurant analyst, the move is a disaster waiting to happen. Tower looks for the move to “slow down drive-thru and disrupt flow, and/or require another chunk of investment in labor…” Tower also looks for “…ongoing confusion regarding cup sizes, what constitutes a clean cup, etc.”
All true, and worse, this comes at a time when Starbucks and Target (NYSE:TGT) got together to sell 40-ounce “Stanley Quencher” cups, which sold briskly in Target. Briskly, that is, to the point where some were buying multiple cups as word had already slipped out that there would be no restocking. At least one brawl was captured and released on TikTok. This could be problematic if customers show up with these cups because they are larger than Starbucks’ largest size.
What do Experts Say about Starbucks Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on seven Buys and 12 Holds assigned in the past three months, as indicated by the graphic below. After a 10.99% loss in its share price over the past year, the average SBUX price target of $110.61 per share implies 18.78% upside potential.
