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 initially was a small structure, run by three partners in a small shop in Seattle. The company then was restricted to selling only whole bean and ground coffee. It was typically a top down structure were the three people in the top management were the decision makers. In 1984, when Schultz suggested the idea of selling coffee and expresso drinks, the directors of Starbucks rejected the idea, in spite of the fact that the move would have made more profit for the company. This displayed the rigidity of the management towards any changes in the business.
During those four decades, Starbucks had grown from a single location in Seattle, Washington, to a multibillion-dollar enterprise that operated more than 17,000 retail stores in fifty countries. Originally selling only coffee beans and ground coffee, it had added to its offerings prepared coffee, Italian-style espresso beverages, cold blended drinks,
- Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Both companies sell the sandwich and beverage, however, Starbucks also sells its enticing aroma, sophisticated music, comfortable seats, attentive staff, and welcoming atmosphere.
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.
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,
The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.
Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries worldwide. The company operates primarily in the US. It is headquartered in Seattle, Washington and employs about 150,000 people. Starbucks mission is “To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time” (www.Starbucks.com). Top management believes in involvement in the activities of the corporation and employees enjoy unsurpassed benefits in the industry. Schultz strongly believes that Employee satisfaction is directly related to customer satisfaction.
The first Starbucks location outside of North America opened in Tokyo in 1996. Starbucks entered the UK market in 1998 with the acquisition of the then 60-outlet Seattle Coffee Company, re-branding all its stores as Starbucks. By November 2005, London had more outlets than Manhattan, a sign of Starbucks becoming an international brand.
Starbucks was established in 1971. With over 182,000 full-time employees, operating in over 64 countries around the world, with their highest stock value being $74.23, their stock market valuing $77.87 billion and their annual value of gift card activations being over $925,000,000 (Statistic Brain, 2017). When the store was first established it was a single store in Seattle historic Pike Place Market. The name was, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders (Starbucks Corporation,
The foundation of Starbucks first international market outside of North America started with Japan in the year 1996 when it opened an outlet in Tokyo’s Ginza district as a joint venture between Sazaby League and Starbucks Coffee International, the international arm and subsidiary of Starbucks Coffee Company.
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.
As of November 2007, Starbucks had 8,505 company-owned outlets worldwide: 6,793 of them in the United States and 1,712 in other countries and U.S. territories. In addition, the company has 6,506 joint-venture and licensed outlets, 3,891 of them in the United States and 2,615 in other countries and U.S. territories. This brings the total locations (as of November 2007) to 15,011 worldwide. Starbucks can be found in many popular grocery chains in the U.S. and Canada, as well as in many airports.
The following year in 1987, the owners sold the company to Howard Schultz, who renamed his II Giornale coffee bars to Starbucks. The company then started expanding at a rapid pace. Once Starbucks dominated Seattle, Washington, the chain grew across the United States and began to enter international markets. The first international location was Tokyo, which still has a heavy presence today. Over the years, Starbucks has acquired companies such as Peet’s and Seattle’s Best Coffee, Coffee People, and Diedrich Coffee stores. By
In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000.