Starbucks Overview
Starbucks is one of the world’s most recognizable brands. Founded in 1971, the coffee giant has grown to become a global powerhouse, with over 30,000 locations in more than 80 countries. In 2021, Starbucks generated $24.6 billion in revenue.
Starbucks Financial Details
- 85% of the revenue came from their 17,133 company-operated stores.
- Licensed stores generated $2.68 billion in 2021.
- On average, a Starbucks barista earns $12.47 an hour.
- In 2021, Starbucks likely used between 2.9 and 2.95 billion cups at their stores, or about 8 million per day.
- Beverage sales make up 74% of store revenue. Food sales are 21% of revenue and packaged coffee is 1%.
- In 2021, Americas accounted for 70% of Starbucks revenue.
- Starbucks’ profit margin per store is estimated over $500 per day.
Starbucks Business Strategy
- Starbucks did suffer a 28% drop in 2020 revenue compared to 2019, caused by the pandemic. But Starbucks’ overall profitability has likely increased over time due to scale and lower costs.
- Starbucks wants its franchise owners to open at least 20 outlets in 5 years. So a single outlet can make around $120,000 in profits per year. 20 outlets could make $2.4 million per year.
- Starbucks does not offer traditional franchises in the US, but you can apply to buy a licensed Starbucks store for around $315,000 on average.