Belinda Wong: Yes. Thank you for the question. The labor shortage from December was mainly because of our partners with COVID infections and there are all — they have all returned back to work. We do not have any labor shortage issue, and we’re ready to rock and roll in hiring more people to get ready for our new store opening. So and I just wanted to highlight the fact that we have been taking care of our partners in the last three years and this year and in the last quarter, you could see that we have all-time low turnover rate and people are staying with us. And so far, I don’t see any issue at all with our hiring or our people staying with Starbucks. So thank you.
Operator: Thank you. Our next question comes from Lauren Silberman with Credit Suisse. Please state your question.
Lauren Silberman: Thank you very much. I wanted to ask about Starbucks Rewards. So you continue to grow double-digits even at 30 million-plus members. How much opportunity do you think exists for further growth? And what are the barriers to transition non-rewards to reward members? And then just related, I know that you guys are planning to change the redemption value in the rewards program for the first time in a few years. Can you just talk about the reasons for the changes? Thank you very much.
Brady Brewer: Great. Yes. Thank you very much, Lauren. I appreciate the question. We do see continued opportunity. If we just look at this past year, our SR membership base grew 15% in the U.S. and globally, we’re seeing significant growth across our different markets as well. So we see not only that, but it’s about 56% of transactions in the quarter. So we see a lot of headroom and relevance for the program. Part of that was accelerated with our launch and starts for everyone a couple of years ago when we lowered the barrier and complexity to enter the program. And we’ve seen that be a continued contributor over the last couple of years since we launched it. So that takes us to the more than 30 million members we have today.
It’s not only 15% growth over a year, 6% growth in that membership in the U.S. just quarter-over-quarter. So we see lots of reasons to be optimistic about the opportunity, and we’re seeing that prove out in the numbers. In terms of the changes that we just made. Within Starbucks Rewards, we really look at that program as offering two things, both product and experiential benefits. And so we’re really looking at both sides of the equation. The experiential benefits that you’ve seen us out of the quarter were things like reward together, the Starbucks Odyssey program and other special events, whether it’s the opening of the Empire State Building and offering members the first chance to go and see a store like that. So we really try and add experiential benefits to the program to make people feel genuinely valued for being their Starbucks customer.
On the product side, what you’ve heard are changes related to our reward redemption tiers. And the purpose of that is a couple of things. From an economic perspective, the redemption tiers and the changes we’re making there better align the cost of product redemptions to our current pricing. And by making that change, it will create discount efficiency, which helps us to continue to grow the program while effectively managing margins. So that’s the two dimensions we look at it on. We see just lots of opportunity left. We have an incredible road map ahead. So we’re just going to keep driving the program and I think our customers will have a lot to celebrate in the years ahead.
Operator: And your next question comes from Danilo Gargiulo with Bernstein. Please state your question.
