Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, Starbucks has more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. (Bramhall) Company History The story of Starbucks coffee history begins in Seattle in 1971 when the first Starbucks opened at Pike Place Market, which is Seattle's and the Nation's oldest Farmer's Market. At this time the company was a local coffee roasting facility. That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing executive and began right away to convince more and more local cafes, upscale restaurants, and hotels to buy Starbucks coffee. The turning point for the company and the beginning of coffee history should be one year later when Schulz traveled through Italy. He got inspired by the Italian coffee bar tradition to serve fresh brewed Espresso and Cappuccino. He convinced the Starbucks founders to give his idea a chance and in 1985 he opened the first coffee bar in Seattle, named Il Giornale. (Wilson) The new concept worked out and Il Giornale was a success. But Schulz aimed higher. He found local investors and bought Starbucks in 1987 for $3.8 million. That gave way for expansion and in the same year he opened new cafes in Chicago and even Vancouver, Canada. The original 17 Starbucks Cafes were established. In 1992 the company went public and stocks were now publicly traded at the NASDAQ (SBUX). At this time Starbucks counts approx. 165 cafes. On March 7th, 2001 Starbucks eventually moved to Europe and opened their first cafe in the Old World: Zurich, Switzerland. Today the company has more than 16,000 cafes in more than 35 countries. (Wilson) Main Products and Services Starbucks Corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide. It offers brewed coffees, Italian-style espresso beverages, cold blended beverages, various complementary food items, coffee-related accessories and equipment, a selection of premium teas, and a line of compact discs, through its retail stores.
Starbucks Corporation purchases and roasts whole bean coffees and sells them. As of September 28, 2003 (fiscal year-end 2003), Starbucks operated a total of 4,546 retail stores. Starbucks sells coffee and tea products through other channels, and, through certain of its equity investees. The Company has two operating segments, United States and International, each of which include Company-operated retail stores and Specialty Operations. Starbucks opened 602 new Company-operated stores during fiscal 2003. As of fiscal year-end, Starbucks had 3,779 Company-operated stores in the United States, 373 in the United Kingdom, 316 in Canada, 40 in Australia and 38 in Thailand. ¡]Smart money, 2004¡^
Starbucks began as a store in Seattle’s Pike Place Market in 1971. Howard Schultz became the director of retail operations and marketing in 1982. The first caffé latte is served many years later in 1984 while testing the idea of a coffeehouse. By
Besides, starbucks is serving more than 70 different types of drinks to their worldwide customers and they not only known for selling brewed coffee, but also best sellers for other hot and cold beverages such as espresso beverages, chocolate beverages, Frappuccino blended coffees, Frappuccino blended crème, blended juice drinks, brewed tea, iced shaken teas. They’re real delicious drinks that loved mostly by today’s adults and especially teenagers. Besides that, they also are selling drinks, smoothies, bottled drinks and fresh fruit juices as a additional
accessories and equipment, a selection of quality teas and a line of compact discs. Starbucks has over 8,700 retail locations in North America, Latin America, Europe, the Middle East, the Pacific Rim and is continuing to grow. When coffee is considered Starbucks has developed a worldwide name for itself and has become a huge success.
Starbucks is a #1 specialty coffee retailer in the United States. Worldwide, the company operates about 5,400 coffee shops in a variety of locations (office buildings, shopping centers, airport terminals, supermarkets). Outside of North America, Starbucks has 900 coffeehouses in 22 different markets. The first foreign coffee house was established in 1996 in Tokyo, Japan. By the end of 2001, the company will have approximately 400 stores in Japan, and a total of 815 stores in the Asia Pacific region. Starbucks has 32 stores in Britain, and over the last two years it has opened stores in Austria, Spain and Germany and has plans to expand into Greece and Italy. Stores in southern China and Macau are scheduled to open in late 2002. Starbucks is also exploring opportunities in Latin American, including in the countries of Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico and Venezuela.
In 1971, three former University of San Francisco students opened the first Starbucks coffeehouse in Seattle, Washington to simply sell freshly roasted coffee beans. The continued success over the course of the next twelve years, attracted current owner Howard Schultz. As Marketing Director,
Before Starbucks became a prominent coffee company with 27,339 locations around the world, it was a tiny shop selling premium roasted coffee beans in Seattle, Washington. Three university professors from San Francisco began their journey at 1912 Pike Place, a miniature building located in the Pike Place Market. They derived the
The first Starbucks was opened in Seattle, Washington in 1971 by three partnersEnglish teacher Jerry Baldwin, history teacher Zev Siegel, and wrier Gordon Bowker. The three were inspired by Alfred Peet, whom they knew personally, to open their first store in Pike Place Market to sell high-quality coffee beans and equipment.
Starbucks is a premium coffee retailer, which started in 1971. It is established in 70 countries all over the world. Starbucks has revolutionized the coffee market by selling expensive and high quality coffee. It has marketed itself as a third place between home and work. They select the locations in such a way that Starbucks is on their way to work and while coming back home from work.
Starbucks began with Jerry Baldwin, Zev Siegel, and Gordon Bowker in Seattle, Washington in 1971. At that time they called it Starbucks Coffee, Tea, and Spice. Their respective love for coffee and tea from around the world inspired them to venture out of their respective disciplines. With the success of a similar establishment in the San Francisco Bay Area, Bowker, Baldwin and Siegel figured they could also build such success in Seattle. With their individual investment of $1,350 and $5000 in loans, Starbucks began. Much credit goes to Alfred Peet a Dutch Immigrant who opened Peet's Coffee and Tea in Berkeley, California in 1966. Having visited Peet's store numerous times, Bowker Siegel and Baldwin learned the art of dark roasting coffee the European way to bring out its full flavor. Starbucks started out as a coffee bean and tea retailer. By the early 1980s, Starbucks had four stores in the Seattle area and Zev Siegel left the partnership after suffering burnout. Jerry Baldwin took over day-to-day management and Gordon Bowker stayed as an owner with other outside interests. All that changed in 1981 when Howard Schultz entered the picture. Schultz visited Starbucks out of curiosity due to the fact that they were selling so many of his company's products. Schultz worked as a vice president and general manager for a Swedish company based in the United States that made stylish kitchen equipment and coffeemakers. Schultz was so impressed with Starbucks, that by the time he returned to New York, he had decided to become a Starbucks. In 1982, Schultz became the head of marketing and oversaw the retail stores. Schultz came with many innovating ideas for Starbucks that was rejected by Baldwin and Bowker, but he never gave up. Between 1987 2003 Starbucks went from seventeen stores to seven thousand two hundred and twenty-five stores one thousand six hundred of which are in foreign countries.
Founded by three partners in Seattle in 1971 in Seattle’s, renowned open-air Pike Place Market and Starbuck’s was named after the first mate in Herman Melville’s Moby Dick. Howard Schultz joined Starbucks in 1982 as director of retail operations and marketing, he returned to the United States with 1500 coffee bars. Schultz had recognized an opportunity to develop a similar retail coffee bar culture in Seattle. The first coffee house was tested in 1985 serving the first Starbucks café Latte, as well as introducing its Christmas Blend (Ferrell, Fraedrich and Ferrell, 2015).
Starbucks Coffee Company was founded in 1971 in Seattle’s Pike Place Market (Starbucks Company Profile). The original name of the company was Starbucks Coffee, Tea and Spices, later changed to Starbucks Coffee Company. Starbucks was named after the first mate in Herman Melville’s Moby Dick is the world’s leading retailer, roaster and brand of specialty coffee with coffeehouses in North America, Europe, Middle East, Latin America and the Pacific Rim. Worldwide, approximately 35 million customers visit a Starbucks coffeehouse each week (Starbucks Comapy Profile). The first founders of Starbucks were founded by English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The three were inspired by Alfred Peet, whom they knew personally, to open their first store in Pike Place Market. The store originally focused more on the sale of beans and equipment than on selling prepared coffee. After that first year, they bought their beans direct from farmers before roasting them. The company remained small and regional for years and there was not much of a specialty coffee market nationwide. The original Starbucks location was at 2000 Western Avenue from 1971-1976. That store then moved to 1912 Pike Place where it is still open. During their first year of operation, they purchased green coffee beans then began buying directly from growers (Jerry Baldwin Bio).
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
Starbucks, begun as a single store as a roaster and retailer of whole bean and ground coffee, tea and spices in 1971 in Seattle, Washington. As of 29th September 2013, Starbucks has grown to more than 19,000 stores in over 60 countries with approximately 200,000 employees worldwide and $14.9 billion in revenues in fiscal 2013 (Starbucks, 2013; Starbucks, 2014). Starbucks is dedicated to inspiring and nurturing the human spirit. Committed to serving the finest coffee, creating an exceptional customer experience, and being a great place to work. Starbucks call and treat their employees as partners and honored to be acknowledged for their efforts (Starbucks, 2012). Fortune magazine has published a list of the 100 best companies in the United States every year since 1998, Starbucks is rewarded this award ever since the first year, only except the year of 2001(Hinkin & Tracey, 2010; Starbucks, 2012).
Starbucks started its humble beginning at a small shop front down by Pike place market in Seattle,(http://www.starbucks.com.sg/our-heritage.html).The company prided itself for roasting high quality whole-bean coffee, and producing one of the best coffees in the neighbourhood. Today, more than forty years later, Starbucks had become one of the leading coffeehouse chains in the world with more than 18,000 storewide in 62 countries.