How Starbucks Became An $80B Business

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  • Published on Jan 10, 2019
  • 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 '80s and early '90s. 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.
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    How Starbucks Became A $80B Business

Comments • 667

  • drei t
    drei t 8 hours ago

    here in the philippines one mall can have 3 starbucks inside wtf

  • Merrielle Gatlin
    Merrielle Gatlin 18 hours ago

    Nyc definitely has wayyy to many Starbucks

  • Merrielle Gatlin
    Merrielle Gatlin 18 hours ago

    No matter where you go in the world at least you have the familiar taste of crappy coffee from starbucks

  • DJMinor5000
    DJMinor5000 5 days ago

    Starbucks is a member of the evil empire out to destroy the world, up there with Walmart, Apple, Disney, etc.

  • Danny Jenks
    Danny Jenks 5 days ago

    no Starbucks in Perth Australia

  • PRYWATNY
    PRYWATNY 6 days ago

    Just drinking in UK . Taste was awfull .

  • Maria Jaramillo
    Maria Jaramillo 6 days ago

    There customer service is amazing i called and told them about my bad experience they emailed me a 10$ gift card for my trouble! I had only paid 3.5 for the iced coffee

  • cisa93
    cisa93 6 days ago

    💩 💩 ☕️

  • trebledc
    trebledc 7 days ago

    I only drink coffee at starbucks in airports. So i believe coffee is like cigarrete, if you tried smoking in one place everytime your are there you will be tempted to smoke. Its addiction.

  • Robert King
    Robert King 9 days ago

    Having never patronized a Starbucks, I simply don't get it. I've had their coffee and frankly, it is horrendous and overpriced. Starbucks is successful not for their coffee but for their name recognition. No-one, actually likes the taste of Starbucks coffees. They like the "status" it gives them as a Starbucks customer. Every darn movie that features a coffee shop, generally takes place in a Starbucks. This is why Starbucks is successful. Not quality, not speed, not even good service. Branding.

  • Atikah Rozali
    Atikah Rozali 10 days ago

    a sb coffee in my country costs RM13++ .. hell no.

  • Denny StylezZ
    Denny StylezZ 10 days ago

    Starbucks coffee tastes like crap. Dunkin Donuts coffee is wayyy better..

  • Jebbie Sans
    Jebbie Sans 11 days ago

    Ryans Bros is the best!

  • Elite Elite
    Elite Elite 11 days ago

    So many idiots still drink that garbage

  • the SUBMARINES
    the SUBMARINES 11 days ago

    High prices

  • Melissa Hudson
    Melissa Hudson 12 days ago

    20,000sqf of "entrepreneurs" with laptops and no place to sit.

    • Andrew Maina
      Andrew Maina 11 days ago

      That’s the wave of the future, traditional office space will be like how people used to use telephones tethered to a wall like sheep :).

  • Michael Slawson
    Michael Slawson 14 days ago

    How Starbucks is loosing custumers,,,Their coffee sucks

  • Conner Jo
    Conner Jo 16 days ago

    Starbucks shouldn't open the store at the under-educated nation like CHINA.

  • Andrew
    Andrew 16 days ago +1

    3 words. Basic White Girls

  • Maddie
    Maddie 16 days ago +1

    Ex-presso 😖😣😩

  • xr6lad
    xr6lad 17 days ago +1

    Got to love CNBC. Starbucks rarely dominates any market outside the USA. It doesnt in most of Europe, certainly not Australia or New Zealand. In fact in Australia they had to shut many stores as you can get better made and roasted and cheaper coffee in pretty much every cafe in the country.

  • Gregg Hanson
    Gregg Hanson 17 days ago

    Let's get something straight here: The U.S. had become accustomed to crap coffee, with Folgers, etc. because those companies bought crap beans and ground or powered them. Starbucks brought good coffee to the U.S....what Europe and many places on earth had been using for many years. This doc implies that Starbucks just started charging more for coffee. Not the whole story.

  • J Man
    J Man 17 days ago

    Did she really say “Expresso”
    God help her

  • Ni'Shara Thomas
    Ni'Shara Thomas 17 days ago

    I literally pay for starbucks vias ONLY each pack sells for $10 for 16 packets of a specific coffee blend, or 4-6 for either a refresher or iced tea powder blend. I literally walk in a starbucks, ask for hot water or a hot water with a cup of ice or iced water only and i have my kit right there and i save on so much visits. You may get a few snarky looks here and there but $4-$8 for 1-2 drinks? No sorry its cheap cheap gang-gang over here lol.

  • Vincent Molyneux
    Vincent Molyneux 17 days ago

    By not paying tax.

  • Andy M.
    Andy M. 18 days ago

    i love Starbucks!

  • Metro Mmdk
    Metro Mmdk 18 days ago

    They cause too much problems with customers . no store policy. No one gets fired???? Each act as the snobish owners. They name you and judge you. Not clean.....

  • Metro Mmdk
    Metro Mmdk 18 days ago +1

    FAKE STAFF .MINIMUM WAGE.?????STEALING????

  • Metro Mmdk
    Metro Mmdk 18 days ago +1

    BARISTAS ARE THE BIGGEST AS HOLES ON THE PLANET. CHEESY

  • Avik Ghosh
    Avik Ghosh 18 days ago

    Fantastic story.

  • I'm that good brah
    I'm that good brah 19 days ago

    Starbucks customers start to get ripped off once Starbucks join Wall Street. From that point on it’s a matter of growing yearly sales and how are they doing that ? By raising prices. Nickel and dime every customer and prices will continue to go up.

  • juha bach
    juha bach 19 days ago

    4:33, Did I hear expresso and not espresso?

  • John Kimble
    John Kimble 22 days ago

    You’re making a short documentary about coffee and the industry. And you say ekspresso

  • Donald Gray
    Donald Gray 22 days ago

    In 1944

    • Donald Gray
      Donald Gray 22 days ago

      In 1942 Vans PX started people loving coffee in Seattle. Starbucks is taking credit for something someone else did years before. They are overpriced, serve terrible coffee, and they don’t like conservatives or the Police!!

  • Shourjo Roychaudhuri
    Shourjo Roychaudhuri 22 days ago

    In India we have around 140 stores.

  • meghna sankhla
    meghna sankhla 24 days ago

    Wifi

  • Next Generation Education & Farmers

    Awesome 😎

  • Alli Eliz
    Alli Eliz 28 days ago +1

    Their teas make me happy yes it’s over priced but you don’t get that at any fast food joint the variety is unbeatable. I’ll treat myself when i can

  • Dubwinner Heretoday
    Dubwinner Heretoday Month ago +1

    Answer: Disney dollars

  • Surendran Selvaraj
    Surendran Selvaraj Month ago

    All your videos are good. It shows the sales growth. It would be great if you can add the net profit over the years which would show the exact growth.

  • WHITE LION
    WHITE LION Month ago

    When I saw the NY roastery was being built I knew it was terrible decision. Starbucks hasn't been doing too well in US compared to China. The first few weeks at the roastery I was in heaven and felt very VIP. They had well over 100 baristas on the floor watching customers like a hawk. I opened a tab just kept ordering and ordering I loved it. Baristas moved from all over the world to work at the roastery. Then I didn't go for a few months because it was so crowded so I didn't bother going in. Then I noticed the local fever died and it's now empty during the week and basically a tourist trap on weekends. It has sunk like the titanic. Corporate slashed baristas hours so most of the ones I knew from Day 1 are already gone. They no longer have that amazing VIP experience. You have to wait a long time on long lines and even longer time for your drink to be ready. It's just not worth the price anymore. I'd say if it's worth going once to check it out or as a date option but that's about it. Corporate has been so desperate to keep it afloat that they have sent over executives I guess while they try to figure out how to redesign the operation. Oh well... 🤷‍♂️🤷‍♂️🤷‍♂️🤷‍♂️🤷‍♂️🤷‍♂️🤷‍♂️🤷‍♂️

  • Plant Maven
    Plant Maven Month ago

    Is she saying x-presso?

  • 張海鷗
    張海鷗 Month ago

    這部影像紀錄片內容製作單位及職務執政者必需同與參政言論活動當中移交的執政人物強迫遣送出境海外市場營銷進行查證涉嫌違反公平交易不當互盟各個國家建設操作違反群組規範服務性條款政策紀律公務職務執政經營投資產業資源合資協議夥伴關係協定記載事項教義科學性系統工程的交易經營方式。持有不當模式操作系統直播節目必定有危及到生命及竊賊盜取機體文件技術性技能訓練有素的天賦異樣創造出更多的年少輕狂無知過失殺人罪行為科學性投資者的最大規模最大的危局,甚至破產後債務糾紛難以處理的最大的傷害。相信這部影像製作單位及著作者自己應該會更清楚自己現狀的債券基金銀庫生存競爭空間。已難以伸張正義感的愧疚於百姓萬民生計問題物資所供應量需求。股市財經經濟銀庫同時急速再度引發冷凍的供應借貸互動連結關係。事實證明一切。

  • Tim Campbell
    Tim Campbell Month ago

    If your doing a piece on coffee you should at least be able to say espresso correctly... There in no x

  • alex
    alex Month ago

    Starbucks coffee is crap 💩 according to my expert friends. Also overpriced!! If people use this shops for internet, stop drinking £5 coffees and I guarantee you can afford to pay for your own internet!!!!!

  • Ana Cristina Felizardo

    I much rather prefer my coffee... haven’t been in a Starbucks for years...

  • The Mazeシ
    The Mazeシ Month ago +3

    Apple + Hauwei + Samsung
    *Laughs in Technology*

  • Tidwell
    Tidwell Month ago +1

    I went to the Starbucks coffee farm in Costa Rica. It's was a great experience. But I have to say. Colombian coffee is better. Not sure if they have a farm in Columbia.

  • P Davison
    P Davison Month ago

    I make coffee at home and save/ invest $$$. Retiring well off at 60 y/o. I look at all these high fat/ sugary foo foo drinks and all the fat people drinkng them.....More than about 2 teaspoons worth of sugar a day is poison.

  • inviniti inviniti
    inviniti inviniti Month ago

    i am too smart to buy a cup of starbucks

  • prospecops
    prospecops Month ago

    Where my tim hortons fans at

  • LED Grow Lights Depot
    LED Grow Lights Depot Month ago +1

    4:33 "Expresso"

  • QuietStormX
    QuietStormX Month ago +2

    I don't Drink Coffee or have I ever been in a Starbucks anywhere... Tea drinker here...

  • ᴅᴇᴀʀ ᴍʀ. ɪꜱᴀɪᴀʜ ᴅᴇʀɪɴɢᴇʀ;

    They -brewed- screwed it.

  • BILLIONS after YOUR MOTHER

    Vs Dutch

  • Fixer Upper
    Fixer Upper Month ago

    Combine addictive substances like caffeine and sugar together, engage social media to make you think it's cool or something. Also charge way too much so any reasonable person that would blow your cover will never come around.

  • Cre8tive Cre8tion
    Cre8tive Cre8tion Month ago +2

    Am i really the only human that stays away fro Starbucks because of price?
    I mean how can some water + coffee bean drink cost so damn much?

  • Zakyrie
    Zakyrie Month ago

    Please lower the volume of music next time. It made it hard to hear the voiceovers... And thanks for the slick vid!

  • RawhideProductions1
    RawhideProductions1 Month ago +1

    4:32 - EXPRESSO

  • sammi159
    sammi159 Month ago

    Starbucks is a huge success everywhere in the globe. It keeps expanding branches

  • Drake Coldman
    Drake Coldman Month ago +4

    DONT USE STARBACKS SUPPORT LOCALS NEW BUSINESSES.
    Let’s start global movement:
    People over Monopolies.

  • Antione Berry
    Antione Berry Month ago

    simplified 1.$5 coffee🍵2.free WI-FI[i love it]3.make yourself look rich drinking it.

  • Mario castillo
    Mario castillo Month ago

    Too expensive for a cup of joe haven’t been there in years!!!!

  • Paul Štutas
    Paul Štutas Month ago

    @4:33 Expresso?????

  • tallaussiebloke
    tallaussiebloke Month ago +4

    You might want to take the cup off Australia.
    The attempt to move in here was near totally laughed out, and most of the stores got bought out by Gloria Jean, who CAN make coffee.

  • Neville J.
    Neville J. Month ago

    I work for Starbucks and after 3 hours into my shift we did a register check and it was slow and I sold over $600 worth of product imagine this times the crazy number of stores and if other stores were busier and you are making money

  • Benhard Sim
    Benhard Sim 2 months ago

    Coffee with 40% ice.

  • Josh Saggers
    Josh Saggers 2 months ago

    Americans are the only people who enjoy Starbucks as they are used to poor quality coffee. The rest of the world actually has good coffee so when Starbucks wants us to pay for overpriced poor quality coffee we laugh

  • Corbeutr
    Corbeutr 2 months ago

    4:30 you mean espresso

  • Dimitri Rodriguez
    Dimitri Rodriguez 2 months ago

    By appealing to yuppies and rich folks

  • Vladimir Cmero
    Vladimir Cmero 2 months ago

    Starbucks is selling overpriced coffee and hoping that I will pay that price because they will write my name on the cup.

  • Vicky Transparent LED Display Technology

    Love Starbucks

  • the eye in the sky
    the eye in the sky 2 months ago

    And they pay nothing to the real farmers overseas for that cup of coffee

  • Angel Andres Garcia
    Angel Andres Garcia 2 months ago +1

    I really don't know what's the big deal about buying over priced coffee . I go to Walmart , buy a bag of Bustelo and make my own strong as hell

  • Khandar William
    Khandar William 2 months ago +2

    i'm more interested on how to sell overpriced beverages
    i also want high margin sales