Introduction
Starbucks is a North American company whose headquarters is based and mounted on the coast of Seattle, Washington, United States. It is recognized as one of the world’s largest corporations that deals with the production and manufacturing of coffee, smoothie, tea, pastries, sandwiches, and other related food and beverage products. It operates efficiently in all of these market niches while building brands specifically for each market niche. Since its establishment on March 30, 1971, the company has continued to make a substantial impact in the industry in which it operates and has since been an exemplary leader to other aspiring companies not only in the industry in which it operates but across other industries as well.
Key Statistics & Facts of Starbucks
Founding Year: Starbucks was founded in the year 1972, approximately 51 years ago.
Industrial Ranking: Starbucks is ranked as the largest coffeehouse corporation in the world. Since its inception has been named to the list of top-ranking agencies including Forbes, and Fortune magazine.. Typically, the corporation is ranked in the 17th position of the World’s Top Female-Friendly Companies 2022. Additionally, it also ranked in the 120th position on Fortune Global 500, indicating the company as one of the largest corporations with higher revenue across the world.
Company Type: A Public Corporation Company (PLC)
Market Reach: Starbucks has more than 33, 833 store offices operating globally with 15, 444 of them scattered across the United States. Its offices are mounted strategically in several countries across the world. It typically operates in more than 80 countries across the globe as of November 2021.
Industry Type: Coffee shop
Trading Type: Starbucks is traded on the New York Stock Exchange (NYSE) market under the ticker symbol, SBUX. Its stock is a component of the NASDAQ 100, S&P 100, and S&P 500.
Workforce Strength: Starbucks has over 383, 000 employees in its workforce globally as of the 2021 report.
Historical Background of Starbucks
Starbucks was founded by three vibrant entrepreneurs, Jerry Baldwin, Gordon Bowker, as well as Zec Siegl in the year 1971. The office was initially located at 2000 Western Avenue and it runs its operations from 1971 through 1976. However, it was later transited to 1912 Pike Place. When the company initially started, it was primarily selling coffee beans before it expanded its operation into selling coffee drinks to the public.
In the year 1973, Starbucks bought green coffee beans from a company operating under the name, Peet’s Coffee & Tea, however, before that year ends, the owner of the company Peet Alfred offered to train Jim Reynolds who was then the company’s new Roastmaster.
In the year 1984, Starbucks bought Peet’s Coffee in a bid to expand and made its operation more rooted in the marketplace. In the year 1986, Starbucks recorded a total number of six independent stores operating within Seattle. By that same year, Starbucks had added to its business operation, the sale of espresso coffee.
The company was sold to Howard Schultz in the year 1987 who began a rapid expansion of the company. In that same year, 1987, Starbucks launched coffee stores outside the shores of Seattle in such states and provinces as Vancouver, Chicago, British Columbia as well as Illinois.
In the year 1989, Starbucks had already recorded a total number of 46 stores in both the Midwest and Pacific, and average, the company roasts over 2 million pounds of coffee which is equivalent o 907, 185 kg every year.
In the year 1992, Starbucks went public with its first initial offering offered to the public on the New York Stock Exchange Market (NYSE). During that moment, the company has a total number of 140 outlets across the world, and it was valued at $271 million during that period.
In the year 1994, the company bought a coffee-producing company operating under the name, The Coffee Connection. The acquisition gave the company the right to produce, sell and market the coffee product called Frappuccino
In the year 1999, the company went out of the box and line up its operation through diversification and opens a restaurant on the coast of the San Francisco Bay Area. The restaurant was however operating under the brand name, Circada.
In the year 2003, April, the company bought two coffee brands from a company operating under the name, AFC Enterprises. The deal was sealed off with a total sum of $72 million USD. After the acquisition, it was reported that Starbucks added up to 150 outlets to its management.
In the year 2006, September, Starbucks bought two more companies operating under the names, Coffee People and Diedrich Coffee the acquisition expanded its tentacles, even more, extending into more new regions and locations like Portland International Airport.
In the year 2008, Starbucks launched its community website tagged to run under the name, My Starbucks Idea. The creation of the website was primarily tailored to garner and gather data and reviews from clients, and comments and discussions can be exchanged through this platform. In the same year, in March, Starbucks bought Coffee Equipment Company.
In the year 2009, the company shutdowns as high as 300 of its outlets recognized as underperforming stores which led to up to 7, 000 individuals losing their jobs.
Beginning on June 25th, 2013, Starbucks started to include the counts of calories on menus and this goes for all its products across the stores in the United States. And in the same year, the company recorded a 10% in-store sales being made via its mobile application.
In the year 018, Starbucks pronounced that it will include blockchain technology in its business operations as this would allow and enable interested clients to leverage the development.
In the year 2020, the COVID-19 pandemic led the company into closing all its cafe-only outlets for a couple of weeks. And in the same year, the company experienced a vast sales reduction and as a result, it requested for reduction in its rent fees from its office owners.
In August 2022, the company sold its Russia-based outlets out during the Russia-Ukraine War. All its sold-out stores were bought by a single individual and were renamed, Stars Coffee.
Product Categories of Starbucks
Starbucks in its entirety offers a lot of products across several categories in all its business segments. This section enlists them below.
Zero-Sugar & Low-Calorie products
Non-dairy milk products
Instant Coffee & Coffee Capsules
Ethos water
Coffee makers & single-use capsules
Alcoholic drinks
Sodas, Espresso, Fruit beverages, & Smoothies
Seanal Cups
Energy drinks
Barrel-aged coffee
Starbucks card & loyalty program
Starbucks Wifi
Partners of Starbucks
Starbuck’s partnership deals include the following top companies and firms across the world.
Apple, Inc
MSNBC
Aeroplan
Kraft Foods
Arizona State University
PepsiCo
Spotify
Disney
Uber Eats
Lyra Health, Inc.
PayPal/Bakkt
Subsidiaries & Brands of Starbucks
The following are the company’s brands and subsidiaries:
Ethos Waters
Seatle’s Best
Teavana
Torrefazione Itali
Tata Starbucks (India)
Hear Music
Starbucks Coffee
Hear Music
La Boulange Bakery
License & Franchises of Starbucks
Ahold Delhaize
Barnes & Noble
Publix stores
Target Corporation
Albertsons
Financial Overview of Starbucks
The below lines enumerate the company’s key financial snapshot as released by Forbes and Fortune magazines.
Revenue: $30.4 Billion USD (Forbes 2022)
Net Income (Profit): $4.4 Billion USD ( Forbes 2022)
Total Assets: $28.8 Billion USD (Forbes 2022)
Total Equity: $-5.321 Billion USD (Fortune 2021)
Operating Income: $4.87 Billion USD (2021)
Market Value: $ 94.677 Billion USD (Fortune, 2022).
Pros and Cons of Starbucks
The following under-listed is the list of pros and cons of Starbucks based on employees’ reviews on Becomeopedia.
Pros
Life insurance
Stable management
Paid Parental Leave
Food and Beverage Benefit
Competitive Pay
Stock options
Medicals
Work/Life Balance
Cons
Insufficient Staff
Policies and changes
Conclusion
In a nutshell, Starbucks is no doubt an amusing and intriguing case to study as a result of its long-shot years in the industry, its cutting-edge and innovative milestones as well as its commitment to expansion. As seen in the above-detailed history that the company leverages its industrial insights and expertise to attain such a great feat and it’s still dedicated to doing the same in years to come. Finally, I hope your expectation as highlighted in the introductory portion of this paper have been addressed. However, on the off chance that you are yet to completely absorb all that is drafted in this piece at once, I recommend that you review it over and over again until you are in sync with the entire information.
