Starbucks CEO Dismisses Reports Of Shortages In Cups, Coffee

Starbucks Corp’s SBUX is not running out of supplies in cups and coffee, the coffee chain’s CEO Kevin Johnson told CNBC on Thursday. 

What Happened: Johnson told CNBC the coffee chain was facing operational challenges elsewhere, in bakery case, but dismissed a Wall Street Journal report that the Seattle, Washington-based company was facing a shortage of cups and coffee syrups. 

See Also: Starbucks Is Seeing More Demand For Oat Milk Than It Can Meet

There is “no shortage of cups, no shortage of coffee,” Johnson told CNBC’s Mad Money anchor Jim Cramer.

The WSJ report claimed the coffee chain was struggling to spring back up to full operations due to the Covid-19 pandemic. 

Why It Matters: Starbucks has temporarily removed beverages based on Oatly Group AB's OTLY oat milk from its app until it restocks inventory, as per the WSJ report that cited the company spokeswoman who added shortages of some items are temporary and vary by store and market. 

Starbucks has been going back to limited seating at its U.S. cafes as the economy reopens after being hit by the pandemic. As per the WSJ report, hiring enough workers for cafes has been an issue for Starbucks in some parts of the country.

Price Action: Starbucks shares closed 0.39% higher at $111.99 on Thursday. 

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