Everything About Starbucks in 2011 – A Growing Company
United States (March 10, 2011) – Starbucks is an international coffee house chain, and the biggest coffee chain in the world. Starbucks has about 17,000 stores in 55 countries. About 11,000 of the stores are in North America with about 6,000 outside of the United States.
Starbucks 101: Everything You Want to Know About Starbucks
What were Starbucks revenues last year?
Starbucks took in about $11 billion last year.
How many customers does Starbucks have?
Starbucks had about 60 million customers last year?
Where is Starbucks based?
Starbucks is based in Seattle, Washington.
What does Starbucks sell?
Starbucks sells various coffee beverages including espresso coffee drinks such as caffe lattes and mochas.
Starbucks also sells various other beverages including fruit juices, teas and bottled water. Coffee brewing equipment and various gift products are displayed in stores as well.
Starbucks recently announced it will be making a major move into the single serve coffee market which will likely include offering a single serve brewing machine. The single serve coffee market provides specialty coffee (e.g., Arabica coffee) that is brewed quickly and efficiently one cup at a time.
Also know as single cup coffee, this is a specialty coffee market that has been growing rapidly and is currently dominated by Green Mountain Coffee Roasters and their Coffee K-Cups.
Starbucks also has an Entertainment division that markets books, music and films. Starbucks-brand ice cream is available in major grocery stores along with the company’s new Via instant coffee product which is sold at 30,000 locations outside of Starbucks stores and has already generated $200 million.
In the coming years Starbucks plans on increasing its product offerings on supermarket shelves. Starbucks also offers its Seattle’s Best brand in Burger Kings and Subway restaurants.
When did the first Starbucks open?
The first Starbucks opened in 1971 in Seattle’s Pike Place Market. The coffee was supplied by Peet’s Coffee & Tea. Later Starbucks started buying coffee directly from producers. By 1982 Starbucks began providing coffee to many restaurants.
[Aspiring Starbucks Baristas - See Barista Resume 2011]
What happened in Milan, Italy in 1983 on the visit by Howard Schultz, then the Starbucks director of retail operations and marketing?
Schultz saw the great popularity of espresso bars and made the decision to test the idea in Seattle. The success of the test led to the rapid growth of Starbucks throughout the U.S.
[Starbucks Barista Hopefuls: See Barista Job Description]
What are some new things happening with Starbucks in 2011?
Starbucks celebrated its fortieth birthday in March of 2011 by unveiling a new logo and various new products (see below).
Starbucks recently introduced mobile payment apps and is increasingly involved in social and digital media. The company now offers EGifting on its Facebook page and recently unveiled a new store design and a new Starbucks logo.
Starbucks also announced that the technology used to create Via instant coffee will be used to create other products to be announced later. Also recently added to the Starbucks menu is a new gourmet coffee blend known as Tribute, which is offered in instant coffee and whole bean coffee form.
New foods unveiled as part of the recent 40th anniversary include “Starbucks Petites,” which are micro-sized foods that include cake pops (small caked served on sticks), whoopee pies and miniature cupcakes.
Last year Starbucks started offering free wireless internet in all of its cafes. This avoided losing customers to other coffee shops and restaurants such as McDonalds due to internet access desired by customers.
In the next few years Starbucks is expected to significantly increase its presence on grocery store shelves and in some large chain stores such as Target and Walmart.
How is Starbucks doing financially in 2011?
Starbucks just had its best fiscal quarter in the company’s 40-year history. Growth for Starbucks in 2011 is projected to be about 16% followed by an 18% growth in 2012.
Starbucks profits rose about 44% in the first fiscal quarter ending January 2, 2011 as compared to that same quarter the previous year. Profits totaled $346.6 million, 45 cents a share, beating the Wall Street estimate of 39 cents.
Starbucks Locations Grow in 2011 – New Starbucks Logo, Products continued:
How is Starbucks stock doing in 2011?
Starbucks stock rose nearly 45% in the last year. The stock hit a low of around $7/share in November, 2008, and since that time has nearly quintupled in value.
The Initial Public Offering of Starbucks stock took place in 1992 when it was listed on the NASDAQ stock exchange. Today the number of shareholders of Starbucks stock is more than seven million.
How did Starbucks do during the years of the economic downturn and recession?
Starbucks closed 900 stores during the economic recession and also enacted a series of changes to operations to provider a leaner and more efficient company.
Underperforming stores were eliminated to improve the company’s bottom line, allowing the company to focus new growth in markets that have not yet been saturated.
What are Starbucks current plans for opening new stores in 2011 and 2012?
Starbucks is expanding in numerous countries worldwide with the most notable expansion occurring in China where at least 1,000 new stores will be opened. Starbucks also just reached an agreement to begin opening stores in India.
Starbucks has an estimated 70% market share in China where demand for coffee is rising at an estimated 20% per year and Starbucks sales tripled from 2005 to 2009.
The rapid rise in coffee consumption in China is due to the growing middle class with more income to spend, and some say also due to their desire to emulate Europeans and Americans. India’s demand for coffee is also growing much faster than the worldwide average of two percent growth annually.
With a New Starbucks Logo and Products the Starbucks Locations Grow Worldwide in 2011 continued:
China and India, like Brazil and Latin America are emerging economies with large and fast-growing middle classes that are creating vast new demand for commodities including coffee, and this is a prime driver in the recent price increases of coffee and other commodities.
This also creates new opportunities for Starbucks to expand as it continues to create legions of gourmet coffee lovers around the world.
Will Starbucks partner with another company to create single serving coffee products?
Last year Starbucks severed its relationship with Kraft Foods which had been distributing its coffee in supermarkets. The termination of the relationship resulted in a pitched legal battle.
Common sense would say that Starbucks would be weary of any more partnerships and is more likely to buy up a major company that can help it enter into the single-serve coffee market.
There were previously some rumors about a Starbucks partnership or purchase of Green Mountain Coffee Roasters, which dominates the market with their Coffee K-Cups and Keurig single serve brewing machines. Most analysts no longer see this as likely.
What makes Starbucks cafes so popular?
Beyond the robust, whole bean coffee many attribute the success of Starbucks to the customer experience and consistency of products offered by the company.
Starbucks employees are well-trained, the line moves fast, internet access is free and easy, and you can have your coffee or espresso drink just how you like it every time, with the same swift and efficient service provided at cafes worldwide. Those things keep people coming back…and the hearty Arabica coffee.
One might also say that the success may be linked to the overall performance of the employees which may be linked not only to their extensive training but also the incentives provided by the company regarding being invested in the company as well as the benefits provided including health care.
Starbucks Locations Grow in 2011 – New Starbucks Logo, Products
What are some challenges facing Starbucks?
The rising price of green coffee beans (unroasted coffee beans) on the world market is taxing all coffee consumers as well as major coffee companies who need to purchase coffee beans as well as other commodities that have been spiraling upward in price.
Fortunately for Starbucks it has bought all of the coffee beans it needs for 2011 and more, which will help it stave off any new price increases for consumers and focus on growing market share.
Spiraling commodity prices including higher prices for milk and bread, will continue to cut into Starbucks profits. Disappointing coffee crops in Brazil, Colombia and Vietnam and Central America as well as rising demand in emerging markets will continue to place upward pressure on coffee prices.
Any new problems disrupting supplies – including high humidity exacerbating coffee disease and pests – will continue to cause concern.
Starbucks will also continue to face competition from other major coffee chains and retailers including Green Mountain Coffee Roasters Peet’s, Caribou Coffee and even McDonalds which now offers premium coffee products.
[Aspiring Starbucks Baristas - See Barista Resume 2011]
Starbucks FAQ – Facts About Starbucks
Starbucks doesn’t engage in political or religious activities or provide financial support to their activities or causes.
The first Starbucks to open internationally was in 1996 in Japan.
The name of the company – Starbucks – derives from the coffee loving first mate of Captain Ahab in the 1851 novel Moby Dick by Herman Melville.
Starbucks Coffee, Tea and Spices was the name of the first Starbucks store which opened in Pike Place Market in Seattle, Washington in 1971. A writer and two local teachers opened the store, whose name later became Starbucks Coffee Company.
[Starbucks Celebrates Fortieth Anniversary with New Starbucks Logo and Products]
The Starbucks logo – which was recently changed for the fourth time as part of the company’s 40th anniversary – was originally created in 1971 and has its origins in the design of a Norse woodcut from the sixteenth century. The woman’s image is that of a siren or mermaid, and pays homage to the earliest coffee traders and their seafaring origins.
Worldwide Starbucks employs about 160,000 “partners” which is their term for employees.
The Mission Statement of Starbucks states “To inspire and nurture the human spirit – One person, one cup and one neighborhood at a time.”
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With new emerging developments in the surrounding geographic area, would Starbucks consider re-opening a store location that had closed in 2008? Existing build out and decor in place.