We are searching data for your request:
To commemorate the occasion, Starbucks will open a 'tribute' store in Tokyo
Starbucks will open its 1,000th location in Japan this summer.
Continuing its quest for global coffee domination, Starbucks is on track to open its 1,000th store in Japan this summer after its first store opened 17 years ago.
According to a release from Starbucks, Howard Schultz helped celebrate the opening of the Meguro location and the Starbucks Support Center in Japan last week. Japan was the first international market Starbucks first opened in back in 1996. "Starbucks will continue to grow in a way that reflects our local customer and the communities we serve — through innovative store designs and formats, locally-relevant beverage and food offerings, continued investments to build an even more engaging digital experience, and an unparalleled in-store 'Starbucks Experience,'" Schultz said in a statement.
The Meguro store was inspired by the traditional Japanese "Ichi-go ichi-e" service spirit (literal translation: one time, one meeting). Japan Daily Press notes that when Starbucks first opened in Japan, the coffee house concept was foreign to Japanese tea drinkers; it's clear that the tides are changing for coffee lovers.
The Starbucks brand has long been ubiquitous in Korea. The first Starbucks opened in Seodaemun on July 27th, 1999, and by 2016, Korea welcomed its 1,000th store in Cheongdam-dong. Although Starbucks here feature an extensive selection of desserts and cakes, often much more elaborate than those found abroad, some of the hype around Starbucks in Korea may be due to its exclusive menu items. Starbucks here offers drinks that often feature flavors unique to Korea such as Omija as well as flavors distinct to Jeju Island.
In its 47-year history, Starbucks has transformed from a single coffee bean store in Seattle to a 30,000 cafe international coffee power house. But massive expansion hasn't come without growing pains.
It's no secret that Starbucks has been struggling to get U.S. customers to frequent its cafes more often. While sales have been positive, the number of customer visits continues to stagnate.
Same-store sales, a key metric in the restaurant industry, have dwindled over the last 12 months as competition heated up and customers were uninspired by some of Starbucks' limited-time offerings. While comparable-store sales exceeded expectations in the fourth quarter that ended Sept. 30, rising 4 percent, much of that was due Starbucks charging more for its lattes.
Under the careful watch of Howard Schultz, Starbucks pursued a strategy of aggressive expansion in the late ➀s and early ➐s. By the time the company went public in 1992, it had 165 stores.
Four years later, Starbucks opened its 1,000th location, including international cafes in Japan and Singapore. Growth was so rapid that, just two years later, Starbucks opened its 2,000th cafe.
While unit expansion helped boost sales throughout the last two decades — Starbucks has had positive same-store sales growth since 2010 — the company has now spread itself too thin.
With more than 14,000 locations in the United States alone today, Starbucks has cannibalized its own sales. The company is regrouping and rethinking its expansion. It is expected to shutter 150 underperforming locations in 2019, three times the amount it typically does.
Compounding its problems are changing consumer preferences, an issue CEO Kevin Johnson has addressed with investors. People are shying away from sugar-laden calorie bombs, which happen to be one of Starbucks' staples. In 2015, sales of Frappuccinos were 14 percent of Starbucks revenue. However, in the first half of 2018, Frappucino sales were down 3 percent — and accounted for only about 11 percent of the company's revenue.
Making matters worse, Frappuccino sales also were hurt by a lack of innovation, analysts said.
To remedy this, Starbucks has shifted its strategy to include more cold beverages like teas, Starbucks Refreshers energy drinks and cold-brew coffee. Around 50 percent of all Starbucks purchases include a cold beverage, the company said when it met with analysts in December.
Starbucks executives also plan to leverage increased use of its mobile app for ordering and a rising number of loyalty members. It also recently announced a new U.S. delivery partnership with Uber Eats.
Another facet of Starbucks' strategy is its Reserve Roasteries — massive 20,000-square-foot stores that are designed to be tourist destinations. Here, Starbucks can experiment with different brewing methods and create innovative beverages.
But Starbucks isn't out of the woods yet. While the company reaffirmed its financial targets last month for fiscal year 2019, it also lowered its long-term earnings forecast.
During its analyst meeting, the company said it expects earnings per share on an adjusted basis to rise at least 10 percent a year over the longer term. Previously, the company predicted 12 percent growth on this basis.
Starbucks' new chief financial officer, Pat Grismer, also said its coffee alliance with Nestle will add to its adjusted earnings per share in fiscal years 2020 and 2021, helping to boost its growth to at least 13 percent in those two years.
Overall, it's emerging that Johnson is planning to take a more measured approach to growth during his tenure as CEO.
Shares of the coffee company are up more than 7 percent over the past year.
The name of the company was inspired in the Moby Dick’s novel Starbuck was the first mate of the ship Pequod.
The first Starbucks’ store was opened in 1971 in Seattle, Washington. It was located at 2000 Western Avenue and later moved to the historic Pike Place Market. The three partners that started this company were Jerry Baldwin (English teacher), Go rdon Bowker (writer), and Zev Siegl (history teacher). At the beginning they did not sell brew coffee, only roasted whole beans.
In 1982, Howard Schultz started to work in Starbucks as director of retail operations and marketing. One year later, in 1983 Schulz travels to Italy.
In 1984, Howard convinces the founders to test the coffeehouse concept. The first Starbucks Caffe Latte is served.
In 1985, Schultz found the store II Giornale where he sold coffee and espresso beverages using Starbucks coffee beans.
In 1987, Starbucks was sold to Howard Schultz, who had worked for Starbucks before. Schultz had been in Italy four years before and fell in love with the uniqueness the Italian coffeehouses had: a place where people gather for talking and sharing experiences. He wanted to reproduce that place in the United States. Schultz rebranded other stores he had as Starbucks and started to expand rapidly, having stores in Vancouver, British Columbia, and Chicago. The revenue for that year was of U$ 1.3 million. Two years later he had 46 stores and roasted over 2,000.000 pounds of coffee.
By 1991, Starbucks become the first privately owned U.S. company to offer a stock option program that includes part-time employees.
By 1992, Starbucks had 140 outlets with revenues of U$ 73.5 million and a company value of U$ 271 million. That year Starbucks had its initial public offering and sold 12% of the company, facilitating the expansion of the stores to nearly double number.
In 1994, Starbucks opened the first drive-thru location. Total stores 425.
In 1996, Starbucks began selling bottled Frapuccino and opened first store outside of North America in Japan. Total stores: 1,015.
In 1999, Starbucks acquired Tazo Tea and Hear Music. Total stores: 2,498.
In 2001, Starbucks introduced the Starbucks card.
In 2003, Starbucks acquired Seattle Coffee Trading Company.
In 2004, Starbucks acquired Ethos Water. Total stores: 10,241.
In 2008, Starbucks acquired Coffee Equipment Company and its Clover brewing system. Launches the first Starbucks online community and joins Twitter and Facebook. Total stores: 16,680.
in 2009, Starbucks Launched loyalty program and Card mobile payment.
In 2013, Starbucks prices $750 million of Senior notes. Starbucks opened 1,000th stores in China and Japan.
Now, in 2014, Starbucks revenues have increased 11% earnings per share surge 22% to a Q3 record .67, and it has 20,519 stores across 64 countries. Starbucks opened stores in Brunei and Colombia.
The logo is also inspired by the sea – featuring a twin-tailed siren from Greek mythology.
Although Starbucks Coffee is now an elaborate and extensive corporation with over 20,000 locations, it came from modest beginnings.
Founding of the First Starbucks:
In 1971, Alfred Peet of Peet’s Coffee inspired Jerry Baldwin, Zev Siegl and Gordon Bowker to open
their own coffeehouse in Seattle, Washington. They named their little storefront in Pike Place Market, Starbucks, af
ter the first mate, Starbuck, in Herman Melville’s novel, Moby Dick. The logo, a two-tailed s
iren, adheres to a similar theme. The founders chose this name and logo as a nod to the historical coffee be
The original Starbucks started small, only selling whole bean roasted coffee beans, not even ready-brewed coffee, and brewing and roasting accessories (source ). From its inception, Starbucks prided itself in freshly roasted coffee beans, roasting their beans at their Seattle plant. Thus, they donated all coffee beans deemed “unfresh” by their high standards to charity (source ). The founders chose to create an independent storefront for their coffee instead of selling it at grocery stores because they wanted to attract customers that were well educated on coffee. To decrease competition, Baldwin bought Peet’s Coffee and Tea ( source).
Starbucks did not expand its product until Howard Schultz (see photo below) entered the picture. The founders hired Schultz in 1986 as the Director of Retail Operations. After suggesting that Starbucks sell drinks as well as their other products and getting rejected by the founders, Schultz left Starbucks and opened his own chain of coffeehouses called Il Giornale. In 1987, the founders sold Starbucks to Schultz for four million dollars (source ) . From then, Schultz merged his six Il Giornale locations in Seattle with Starbucks. however, Peet’s Coffee and Tea remained separately run than Starbucks. By August of 1987, there were 11 locations and about 100 employers. With a vision of bringing the community sense of
European coffeehouses, Schultz and Starbucks spread rapidly in Seattle and beyond. Within a year, Schultz opened nine Starbucks in C hicag o. In the early years, Schultz made aggressive expansion plans. Schultz was willing to put the company in a deficit to prepare for drastic growth. In 1989 alone Starbucks put themselves one million dollars in debt. However, initially the company spent little money on advertising because of the popularity of Starbucks’ specialty coffee. In the United States, specialty coffee sales increased from $50 million to $500 million during the early years of Starbucks.
In June o f 1992, Starbucks went public, selling each share at $17. Prior to the company’s decision to go public, it gave stock options to its employees. At this time, Starbucks partnered with Nordstrom’s and Barnes & Noble, giving them the right to sell Starbucks coffee. Meanwhile, Starbucks had already expanded
to 165 storefronts. Throughout the 1990s, Starbucks’ expansion an d, consequentially, stock continued to grow at an exponential rate. By 1993, there were 275 stores and by 1994, there were 425 stores. Profits increased by 70-100% in the early 1990s. To meet the demands, Starbucks opened the second roast-plant in Kent, Washington in 1993. When the Starbucks in Washington D.C. opened in 1993, it became the first Starbucks on the east coast. After this addition, Starbucks opened in cities across the nation at a very rapid pace ( source ).
The coalition of Starbucks and Pepsi-Cola led to the release of the Frappuccino in 1995. Because of the intense popularity of the drink, Pepsi-Cola and Starbucks produced portable versions sold in grocery stores. That same year, Starbucks partnered with United Airlines and various CD companies to extend its markets. In 1996, the first overseas location was in Japan, followed by Hawaii, Singapore, and the Philippines. By the end of the year, there were 1,412 storefronts, and profits rose to $57.4 million, more than five times than the net worth in 1994. It was during the late 1990s that Starbucks gained its reputation of employing the strategy to overwhelm civilians with a “Starbucks on every corner.” Their concentrated presence sparked protests in cities. Civilians debated whether it was fair for Starbucks to surround local coffeehouses or to buy them out. This habit brought up the debate between large corporations and small businesses. By 1998 Starbucks coffee was being sold in grocery stores (source).
The rate of expansion only only increased at the turn of the twentieth century. In 2000, Schultz stepped down as CEO to manage international locations, and let Orin Smith take over. Starbucks did not expand into continental Europe until 2001 with Switzerland and Austria. Starbucks opened its 10,000th store in 2005. In March of 2005, Smith demoted himself and promoted Jim Donald, the president of the North American region, to CEO. Now, however, Howard Schultz is the CEO again. Beginning in the 1990s and to the 2000s, Starbucks opened a new storefront each work day. Today there are about 20,900 stores in over fifty countries. For $23 million, Starbucks bought Coffee Connection in Boston, and for $75 million, it bought Seattle’s Best Coffee Company ( source ).
Structure of the Corporation:
From the headquarters in Seattle, executives administer the entire company. District managers look over regional groupings. Each store in a regional grouping has a manager and various shift advisors. The storefronts, however, are not franchises. They are licensed storefronts (source).
The numbers: Starbucks quarterly revenue rose 13% to $3.8 billion in its fourth fiscal quarter, which ended in September, compared to a year earlier. The US and China/Asia-Pacific regions posted especially strong revenue growth at 8% apiece, while the region including Europe, the Middle East and Africa saw sales rise by 2% from last year, the first increase in over a year. Operating income rose 29% to $668.9 million for the quarter, well above the $519.6 million registered for the same period a year ago. Shares are down slightly in after-market trading.
The takeaway: Apparently, Wall Street is already looking past what Starbucks is doing today. Record revenue, strong same-store sales growth and rapid expansion across the company’s several regions wasn’t enough to impress the markets. After rising slightly on Wednesday, Starbucks shares are down almost 3% in after-market trading. This probably has to do with the company’s outlook for 2014 Starbucks is targeting sales growth of 10% for 2014, but analyst expectations were closer to 12%.
What’s interesting: 2013 has been a great year for Starbucks. In fact, according to the company, this has been the best year in its 42-year history. “Today Starbucks announced incredible fourth quarter results in what has been a truly outstanding year,” CFO Troy Alstead said in a statement. Indeed, the company’s performance over the past four quarters has been very strong. The $3.8 billion in revenue Starbucks posted in both its first and fourth quarter are historical bests, and the company continues to post near-double digit growth in several regions, including North America and China/Asia Pacific.
The global coffee shop king has also promised to expand, and expand it has. So far this year, the company has opened over a thousand stores around the globe. In the fourth quarter alone, Starbucks opened 558 new stores, including its 1,000th store in both China and Japan. But it’s also boosting same stores sales on better store traffic. Further validating Starbucks record year is how well its stock has done: it’s up by a staggering 50% since last year.
XIAMEN, China — This city of two million on the coast between hard-charging Shanghai and Guangzhou is celebrated as the capital of China’s tea-sipping, slow-living culture.
It now boasts the largest Starbucks store in the country: four stories, 4,300 square feet, with a glass-enclosed patio offering an ocean view.
However, it isn’t bustling. It serves mainly vacationers and shoppers, not the kind of habitual patrons that have made the company a $60 billion darling of Wall Street.
Here, people nurse their drinks and lose themselves in their laptops. They stake out a nook with overstuffed armchairs or loiter at the communal long table, and they tend to hunker down there — enjoying tranquility that's usually elusive in teeming China.
What isn’t elusive in China these days is the green mermaid logo.
Between 2012 and 2013, Starbucks opened 500 new stores across the country, slightly more than the total in the chain’s first 12 years in the mainland market. Last fall, Starbucks achieved its 1,000th store goal with a flagship cafe in Beijing’s central business district. It's on track to add another 500 locations this year.
Given such explosive growth, China is projected to overtake Canada as the second largest market by year’s end.
What remains to be seen is if such ambitious expansion is sustainable. The average Chinese earns $500 a month and drinks just three cups of coffee a year. How many $4.5 cups of coffee do they actually want — or can they afford?
Already, Starbucks coffee costs 10 to 20 percent more in China than in the United States. That aggressive pricing prompted a recent attack by China’s state media, which accused the Seattle company of profiteering.
“Our pricing is based on the costs of doing business in the market,” responded John Culver, Starbucks president for China and Asia Pacific.
Either way, the accusation didn’t stick. Feisty, witty Chinese netizens quickly came to Starbuck’s defense — a sign of the coffee behemoth’s growing legion of supporters.
"In China, Starbucks is still a name brand."
That may be evidence that Starbucks’ efforts to accommodate Chinese preferences are actually working.
Unlike Americans, who can’t cope without a morning cup of joe, most Chinese customers don’t just grab and go. Instead, coffee shops here are a destination. People sit back and chat with friends and family. Some come to meet with clients or do business.
So Chinese customers have come to expect spacious branches with ample comfortable seating. More than the proverbial third place outside their home and office, Starbucks to them is as cozy as their own home, and more functional than their office.
“What we’ve been able to do is to build Starbucks into a lifestyle brand that Chinese customers want to be a part of,” said Culver. “There is a tremendous opportunity to grow that connection and earn their business.”
For China’s brand conscious middle class, a trip to the coffee shop is a see-and-be-seen occasion. This is especially true for the young, who are increasingly trading tea for the occasional coffee.
“In China, Starbucks is still a name brand,” said Xu Lijuan, 25, a manager at a residential building. “However, that in and of itself isn’t enough to keep me coming.” Xiamen, with its Venti-size branch, embodies both challenges and opportunities for Starbucks. The city boasts per-capita income of $620 — China’s 10th highest, and slightly above the national average. Although sipping tea is the signature pastime, the city already offers a high density of coffee shops, and Starbucks — which opened its first café in 2010 — is facing stiff competition here.
There’s a Singaporean coffee house that claims it is best suited for the Chinese palate. Another offers sought-after tiramisu and homemade gelato. One two-store chain even receives courier packages for patrons.
Starbucks, addressing Chinese consumers’ concerns about food safety, takes pains to label many of its pastries as US imports. (Even so, Starbucks sourced chicken for its panini from the same Shanghai company that was found to have supplied McDonald’s with tainted meat.)
LIMA, Peru - After hundreds of thousands of dollars and millions of miles traveled, one man is more than halfway to his goal.
The 47-year-old, whose full legal name is Winter, is on a personal mission to drink coffee at every Starbucks location in the world. The international coffee chain opened its 30,000th store earlier this year in Shenzhen, China — and continues to expand.
Last week, Winter hit a milestone of visiting his 15,000th Starbucks in Peru. He said he typically prefers drip coffee, but ordered a Colombia Nariño Latte Macchiato for the momentous occasion.
𠇏or milestones, I like to choose something different,” he wrote on Twitter.
Winter has visited nearly 12,000 locations across the United States and Canada. He has also stepped foot in more than 3,000 international stores in dozens of countries around the world, including locations in India, Japan, Egypt, France and Costa Rica.
He meticulously documents his visits with photos on his website, StarbucksEverywhere.net, and shares updates on social media.
“Usually I go in, I talk to the manager, explain what I’m doing, asking for anything that’s unusual about the store and any stores that I might have missed in the area that I might not be aware of,” he explained. “I ask for sample coffee, and I’ve gotten a sample coffee from over 95 percent of Starbucks that I’ve been to.”
Winter said when he’s on a blitz, stopping into as many Starbucks locations in a row as time allows in his travel plans, he’ll just go in and pay for coffee without pausing to chat.
Winter has been featured by dozens of media outlets and starred in the 2007 documentary, "Starbucking." He periodically gets recognized from the publicity he’s received over the years.
“Sometimes, I’ll tell them what I’m doing and they’ll have heard of me and we’ll get into a five or 10 minute conversation,” he said. “They might want a selfie for the Instagram, and I love that kind of stuff. I love meeting new people and talking to people.”
In addition to “Starbucking” as he calls it, Winter stays busy working as a contractor in computer programming. He also takes care of his mother who lives in Panama, is a tournament Scrabble player, runs and does kickboxing — among many other things.
use I work as a contractor, I’m not limited to two to four weeks of vacation a year. I can take as much time off as the schedule and my personal budget allows,” he explained. “That’s been crucial in getting up to 15,000 stores in the last 22 years because typically I have only worked six to nine months out of the average year.”
Winter, who is originally from Houston, said he didn’t start drinking coffee until his third year at the University of Texas.
“Starbucks didn’t get to Austin until late 1994,” he said. “I personally did not discover Starbucks until March of 1995 in Houston and I became a Starbucks addict later that year.”
Since that time, Winter said he believes the company’s customer service and store design has greatly improved. Starbucks CEO Howard Schultz left the company in 2000 and returned in 2008 — transforming certain elements of the company for the future.
“In the mid s when I discovered Starbucks and through the mid 2000s, Starbucks store design was mostly cookie cutter. You𠆝 have essentially the same layout, same design elements from store to store across the country. Then Howard Schultz stepped away as CEO,” Winter explained. “He came back in late 2008 after the purge, and he put out an open letter to the public admitting that Starbucks had made mistakes, had opened too many stores, had chosen poor locations, and that they were committed to choosing better locations moving forward, and having more individualized stores.”
Winter said more Starbucks stores are now unique to their own communities. The company has also added WiFi, electrical outlets and improved other areas of customer service throughout its locations.
At the same time, Winter feels the coffee quality has steadily declined since he started drinking Starbucks. Part of the reason could be that he has developed a taste for third wave, lighter roasted coffee, he said. He’ll often seek out coffeehouses offering artisanal or specialty coffee, which he also documents on his website.
But despite his coffee tastes, Winter is committed to his Starbucks project and constantly monitors the Starbucks website for store openings, closures and relocations. Many times, a store will move locations — sometimes across the street or within the same building unit — which has “significantly” increased his efforts to keep up.
“Starbucks put new store development on effective hiatus for several years from 2009 to 2012. When they started ramping up growth in North America again, a significant percentage of store openings were relocations of older stores. Now, over half a decade later, Starbucks has relocated more than 1,000 stores across North America.”
Winter uses a database to keep his Starbucks visits organized, he said.
“It would be impossible to do it otherwise,” Winter said. 𠇊nd even with the database, it’s a nightmare because Starbucks has been routinely changing store names for decades on the website.”
After more than 15,000 stores and counting — Winter said his favorite location is the Dazaifu Tenmangu Sando store in Fukuoka, Japan.
"When asking me about Starbucking, most journalists focus on Starbucks, but that&aposs like looking at a painting and fixating on the canvas," he wrote recently on Twitter. "In truth, Starbucking is more about challenges, travel, experiences and people than about one company."
America might run on Dunkin', but there's at least one man who runs on — and in pursuit of — Starbucks.
A Texan man named Winter says he has visited at least 15,061 Starbucks stores across the globe since 1997. His goal to hit as many of the company's 30,000 locations as possible is all part of a project he calls "Starbucks Everywhere."
"This project does get quite tedious," said the 47-year-old, who told Business Insider that his career as a contract computer programmer gives him the freedom to travel across the world for his hobby, which he calls "Starbucking." To make each visit "count," Winter usually orders a small sample size of coffee in each store, downs it, and then snaps a picture for his website.
To date, Winter has traversed four continents in search of Starbucks locations. Needless to say, that's a lot of coffee-drinking for someone who doesn't even like the taste of Starbucks — Winter said he's never even tried the company's famed Pumpkin Spice Latte. But despite his personal preference for independent coffee roasters, Winter powers through for the project.
"If I want to accomplish the goals of hitting future milestones, I got to go through the motions of following the rules of Starbucking," he said.
Winter's hobby started by chance in a Starbucks in Plano, Texas, 22 years ago, after he started speaking to some baristas about the coffee chain that seemed to be growing quickly. At the time, Winter recalled, there were close to 1,500 locations in the US.
"And then I immediately asked, 'I wonder if it would be possible to visit them all.'"
In the early days, Winter completed his quests by using phone books and speaking to baristas. Since then, he's developed a more advanced system to keep track of his visits, which involves recording trips with photos and assigning numbers to correspond to the stores.
His hunt has taken him to stores in South Korea, Japan, and Qatar and even nabbed him a backstage pass to meet rock band Vampire Weekend at Madison Square Garden, after one of the band members heard about his extreme hobby.
The habit has facilitated meaningful friendships for Winter all over the world and has nabbed him national media attention. But he says all of this was completely unplanned.
"I never anticipated that it would get to this level," Winter said, adding, "I'm just a boring computer programmer."
You might turn up your nose at the idea of the convenience store as a legitimate coffee shop, but 7-Eleven offers coffee and is serious business, finishing as the No. 2 business on the Entrepreneur Franchise 500 list in 2018 and No. 1 in 2017. Like Dunkin&rsquo Donuts or Starbucks, 7-Eleven combines longevity with current success and expansion -- as of the start of 2017, there were more than 62,000 7-Elevens across the globe. That&rsquos far more than the number of Dunkin&rsquo Donuts and Starbucks combined.
7-Eleven is sort of the opposite of Starbucks in that, where Starbucks is looking for business owners who can offer them new locations, 7-Eleven wants to offer potential business owners new locations. So if you go to the 7-Eleven website, you can see a map, similar to the one for Dunkin&rsquo Donuts. Except, instead of showing places where you might build a franchise, 7-Eleven highlights pre-existing locations you can buy, skipping over much of the labor of construction and startup.
This business model might also be why there is such a disparity between the possible investment costs in a 7-Eleven franchise: A 7-Eleven can cost anywhere between $37,550 and $1,149,900. Of course, if you&rsquore buying New York City real estate, you&rsquore probably going to end up paying more than you would for a corner store in my home state of Missouri.
Much of that cost will go into the franchise fee, which can range anywhere from $10,000 to $1,000,000 (with 10 to 20 percent off for veterans, as well as special financing), and 7-Eleven requires a net worth of $100,000 to $250,000.
So, if you have some money in your pocket and want to open a coffee franchise in Midwest America, but you can&rsquot license a Starbucks or afford a Dunkin&rsquo Donuts, you might at least consider doing research for 7-Eleven.