Starbucks
Coffee talk with the newest Starbucks board member
December 14, 2011: 6:13 PM ET
Why Clara Shih joined the Starbucks board.
Coffee chain Starbucks (SBUX) today announced the addition of Clara Shih to its board of directors, in a move that adds both youth and social media know-how. Shih is the 29 year-old co-founder and CEO of Hearsay Social, a San Francisco-based developer of an SaaS dashboard that helps companies manage their social media platforms.
I spoke with Shih earlier today, and what follows is an edited transcript of our conversation:
Fortune: Why are you joining the Starbucks board?
Shih: I've been a huge fan of Starbucks for a long time and when they approached me I was thrilled not only because it's such an admired brand, but also because of how much it has invested in social media. I said yes because two years ago we started Hearsay Social to establish a new era of enterprise software around what we believed was a new business imperative, and this board appointment is a validation of that dream.
That sort of sounds like you're hoping this board seat will be a PR boon for Hearsay. Accurate?
No, that's not why I'm doing it. I just mean that this is my first public board appointment, and it is a validation of the importance of the type of work Hearsay is doing. There may or may not be PR benefits to Hearsay, but they weren't part of my decision-making process.
Facebook's Sheryl Sandberg plans to step down from the Starbucks board next year. Do you view yourself as the designated "social media" replacement?
I'm a huge fan of Sheryl's personally and worked with her in the past at Google (GOOG), but I don't see myself as her replacement.
Start-up CEOs aren't known for having much free time. Did you have any concerns that the board seat would become a time burden?
It is something I've thought a lot about. I've gotten better over time at saying 'no' to things, but when this opportunity came up I knew it was one I couldn't turn down. Not since starting Hearsay Social have I felt this excited about an opportunity.
Are you interested in taking other public board seats?
It's hard to say in a general sense, except that I do think there need to be more women and young people on public boards.
Any worries that Hearsay Social might now have trouble getting business from a Starbucks competitor?
It hasn't really crossed my mind. Obviously I'll have to recuse myself on any Starbucks board business that involves Hearsay Social, and I assume any other world-class organization would respect that separation.
Do you get some sort of special card now that gives you free coffee?
Not that anyone's told me about yet.
Read Fortune's profile of Clara Shih from earlier this year
-
Time to short Dunkin'?
Why is Dunkin' Brands trading at a higher multiple than Starbucks?
By Howard Penney, Hedgeye
We've said it before and we'll say it again: The coffee space is in a bubble. Valuations have sky-rocketed over the past year, but Dunkin' Brands has become especially expensive since its eye-popping IPO last month. Dunkin' Donuts, of course, is a domestic regional brand with a plan to grow into new markets within the U.S. We MORE
Aug 2, 2011 2:00 PM ET -
Why I'm buying Dunkin'
Facebook is overvalued and Zillow is disappointing, but give me some of that Dunkin' offering!
FORTUNE -- Twice in the last few months, I've used this space to explain exactly why I thought it a bad idea to buy two impending IPOs: those of Facebook and Zillow. I took a lot of heat for each column. In the former, I was mocked for declaring that I wouldn't buy something that no MORE
Duff McDonald, Contributing Editor - May 5, 2011 12:23 PM ET -
Why Starbucks should buy Peet's
Peet's is one of the best-positioned small-cap growth names in the restaurants and coffee space. It's an opportunity Starbucks shouldn't miss.
By Howard Penney, Hedgeye
Devotees of Peet's Coffee and Tea may cringe to hear this, but Starbucks should take a good look at the chain's potential as an acquisition. The surge in coffee prices is an overhang, but not a deal-breaker to Peet's growth story. Any commodity concern-induced dips in the share price MORE
Feb 23, 2011 2:37 PM ET -
Apple is to iPod what Starbucks is to…coffeemaker?
Starbucks announced earlier this week it's wading into the single-serve market and its entrance into the business could revolutionize the coffee machine.
by Howard Penney, Hedgeye
I'm not privy to the thought process or grand strategy of Starbucks but I have been covering the company since the day it came public. So I wasn't so surprised when the company announced earlier this week that it struck a deal with Courtesy Products to MORE
Feb 17, 2011 3:08 PM ET -
Starbucks' climb isn't over yet
VIA instant coffee was ridiculed when it launched, but it turned out to be a huge success in 2010. This and other reasons to be bullish on the coffee chain, even after its strong year.
By Howard Penney, Hedgeye
It would be hard to dispute that fiscal 2010 was a strong and pivotal year for Starbucks. With about 60% of analysts now recommending the stock as a buy versus a low of MORE
Dec 3, 2010 2:23 PM ET
