RISE - Menu Monitor

Starbucks
Headquarters
2401 Utah Ave. S. Suite 800, Seattle, Washington 98134 USA
Tel: (206)447-1575 Fax: (206)447-0828
www.starbucks.com
Ownership: Public
Segment: Limited Service Coffee/Beverage
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 7,037,088 5,789,566 4,804,140
Company-owned ($000) 5,784,816 4,760,512 4,025,453
Franchised ($000) 1,252,272 1,029,054 778,687
U.S. Number of Units 9,401 7,661 6,376
Company-owned 6,010 5,028 4,394
Franchised 3,391 2,633 1,982
International Sales ($000) 2,668,525 2,133,785 1,790,612
International Units 3,767 3,140 2,573
Average Sales/Unit ($000) 1,057 1,016 960
Concept Positioning |
Starbucks Coffee is the largest specialty coffee chain in the U.S. Its overall goal is to be the leading retailer and brand of
coffee in each of its target markets. Starbucks, named for the first mate in Herman Melville’s Moby Dick, offers more than 30
blends and single-origin coffees as well as bakery goods, sandwiches and merchandise. Starbucks has more than 10,000
stores in all 50 U.S. states and the District of Columbia, and operates in 41 international countries.
Retail stores vary in size from 300–1,700 sq. ft. Most have limited seating available. The units are designed to be sophisticated
and inviting. A theatrical atmosphere is created with sleek black stools, mahogany trim on counter tops and opera or jazz
music filling the air. Exteriors are unique and designed to be in character with its neighborhood. Typically clustered in high
traffic areas, many are located in urban and suburban office buildings. The company's two smaller prototypes are designed for
high-traffic, space-controlled areas such as office lobbies, grocery stores, hospitals, etc. Both carry a full line of its beverages
but have limited selections of whole beans and accessories. Approximately 40% of sales occur before 11 a.m. Coffee
beverages account for 69% of retail sales; 10% of sales come from whole bean coffee; 15% comes from food items; and
coffee-related hardware accounts for 6% of sales.
Starbucks has a network of coffee brokers that look for the pick of the crop in the world's coffee-producing countries, buying
only arabica beans to handle the roasting of its "full-city" process. Roasting is handled in the company plants so that its
emphasis on quality can be maintained. Stores receive fresh supplies of whole-bean coffee at least twice a week as the end
product of the roasting process has a short shelf life.
The company also holds the patent on a brewing system that provides constant delivery of three different coffees to spigots
throughout the store. Water is filtered to ensure a uniform taste. The beans are ground immediately before the coffee is
brewed. In addition, special paper cups, treated with a polymer that ensures no flavor transfers, are used for individual cup
sales.
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