Starbucks – additional information
Starbucks is a publically traded corporation within the coffee shop industry. Founded in 1971, the first Starbucks store was located in Seattle’s Pike Place market. Throughout the 1970’s and early 1980’s, Starbucks operated entirely as a coffee retailer, selling coffee to restaurants and bars. The contemporary business model was set in motion in 1987 when Howard Schultz, the director of retail operations and marketing, acquired the assets to Starbucks and with the help of investors set up Starbuck Corporation. He based Starbucks on the espresso bars he had seen in Milan, Italy and by 1989 had 55 stores in North America. As of 2017, there were 13,930 Starbucks stores in operation in the United States and 27,339 worldwide. The United States remains the country with the highest number of stores, with around 1,000 more stores in the U.S. than all other counties combined.
The revenue of Starbucks has grown in a similar fashion to the growth of store locations. Both store numbers and revenue have increased year on year, between 2003 and 2017, with the exception of 2009. Despite the 2009 dip, revenue growth in recent years has increased dramatically. Between 2010 and 2017, Starbucks revenue more than doubled from 10.7 billion U.S. dollars to 22.39 billion U.S. dollars.
Within the last 10 years over 70 percent of Starbucks sales have been generated through its beverage range. Since the company’s founding, Starbucks has broadened its product range beyond warm beverages. Food, packaged coffees and tea, as well as coffee making equipment and merchandise such as mugs help boost Starbucks sales. Food items have become a more significant product in recent years. The line's share of total Starbucks sales increased annually over the past 10 years, growing from 15 percent in 2005, to 20 percent in 2017. In 2016, Starbucks invested more than 378.7 million U.S. dollars in marketing.