Company-operated Starbucks stores are run by Starbucks itself, which employs the staff, pays the costs and books all the sales; licensed stores are run by partners such as retailers, airports and joint ventures, which pay Starbucks a royalty and buy its products. As of 28 June 2026 Starbucks had 13,613 company-operated and 27,691 licensed stores (41,304 in total), after its China retail business moved to a licensed joint venture with Boyu Capital. In fiscal 2025 company-operated stores still produced 83% of net revenues.
Starbucks staffs and runs these coffeehouses and keeps their full sales. In fiscal 2025 company-operated stores brought in $30.7 billion, 83% of total net revenues of $37.2 billion.
02
Licensed: rent the reach
Licensees pay operating costs and capital investment. Starbucks sells them coffee, tea, food and equipment, and receives royalties and license fees. Licensed stores brought in $4.35 billion, 12% of net revenues, in fiscal 2025.
03
Same standards, different owner
Licensee employees must follow Starbucks' store operating procedures and attend similar training. Licensees often give access to retail space Starbucks could not otherwise get, and in a few international markets Starbucks also uses traditional franchising.
04
The mix depends on the market
Starbucks says the mix varies with access to retail space, the complexity, profitability and expected size of the market, and its local support infrastructure.
What changed in 2025-26
China flipped the balance
On 30 March 2026 Starbucks completed the sale of a 60% interest in its China retail operations to Boyu Capital, at an enterprisevalue of about $4 billion, keeping 40%. In the following quarter about 8,000 international stores moved from company-operated to licensed, so licensed stores became the majority.
From 21,514 to 13,613
At the end of fiscal 2025 (28 September 2025) Starbucks had 21,514 company-operated stores (52%) and 19,476 licensed (48%). By 28 June 2026 the split was 13,613 company-operated and 27,691 licensed.
Back to Starbucks closures
Under its ‘Back to Starbucks’ strategy Starbucks closed coffeehouses at the end of fiscal 2025. On 22 September 2026 its board approved closing about 1% of its more than 18,000 North America coffeehouses, roughly 250 stores, and it cut its fiscal 2026 net new openings guidance to about 440.
Standards, data and AI
Starbucks is rolling out the Green Apron Service Model, a set of repeatable standards for US company-operated coffeehouses supported by technology for order flow and speed. Its 10-K lists data analytics, including AI and machine learning, among the capabilities it must keep building.
Starbucks stores by model (company filings)
28 Sep 2025 (fiscal 2025 end)
Company-operated21,514 (52%)
Licensed19,476 (48%)
28 Jun 2026: North America
Company-operated11,149
Licensed7,222
28 Jun 2026: International
Company-operated2,464
Licensed20,469
28 Jun 2026: total
Company-operated13,613
Licensed27,691
What it means for you
Investors: read the store split with the revenue split; licensed stores add reach and margin but little revenue per store.
Operators: license where a partner controls the space (airports, grocery, campuses) and operate where the brand experience is the product.
Treat a big licensing deal like China's as a capital decision: it frees cash and risk, and gives up control and part of the upside.
If you license your brand, write the operating standards and training into the contract, as Starbucks does.
Expect technology, including AI tools, to carry more of the consistency job across both models.
The Business Engineer lens
Starbucks is moving toward a capital-light model abroad while keeping control of the experience at home, the same split AI-era platforms make between owned interfaces and licensed distribution. The Business Engineer view: own the places where the brand is made, license the places where it is only sold.
What is the difference between company-operated and licensed Starbucks stores?
Company-operated stores are run by Starbucks, which keeps the full sales; licensed stores are run by partners that pay Starbucks royalties and buy its products.
How many Starbucks stores are licensed?
27,691 of 41,304 stores as of 28 June 2026, after Starbucks' China retail business became a licensed joint venture.
Are licensed Starbucks stores franchises?
Mostly no. Starbucks uses licensing with partners such as retailers; it uses traditional franchising only in a limited number of international markets.
The complete explainer, cleaned up and reformatted for mobile.
In short
On 28 Jun 2026 Starbucks had 41,304 stores: 13,613 company-operated (33%) and 27,691 licensed (67%). The balance flipped in Q3 fiscal 2026 when its China retail business became a licensed partnership; at the end of fiscal 2025 the split was 21,514 company-operated and 19,476 licensed. Company-operated stores still earn 83% of revenue.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Key figures, at a glance
Starbucks stores: company-operated vs licensed
Company-operatedLicensed
Figure
Value
Company-operated, 28 Jun 2026 filing
13,613
Licensed, 28 Jun 2026 filing
27,691
Company-operated, 28 Sep 2025 filing
21,514
Licensed, 28 Sep 2025 filing
19,476
Revenue from company-operated stores, FY25 calculated
Starbucks operates through two primary retail models: company-operated stores where Starbucks directly manages operations, staffing, and inventory, and licensed stores located within third-party venues like grocery stores, airports, and hotels where partners handle day-to-day operations under Starbucks brand standards. This dual-channel strategy balances brand control with market expansion efficiency.
Key characteristics of this retail structure include:
Licensed locations capture incremental beverage consumption in non-traditional settings without cannibalizing existing company store traffic
Quality control mechanisms are stricter for company-operated locations with direct corporate oversight of training, sourcing, and customer service standards
How Starbucks Operated vs. Licensed Stores Works
Starbucks’ dual retail model operates as an integrated ecosystem where company-operated stores serve as the brand’s foundation while licensed stores extend market reach into captive audience locations. Each channel follows distinct operational frameworks but maintains unified product quality, pricing architecture, and brand presentation standards. The company strategically uses company-operated stores in high-traffic urban centers and airports where brand control justifies premium real estate costs, while deploying licensed locations in grocery chains, Target stores, and university campuses where partner infrastructure reduces capital requirements.
Company-operated store operations follow this structure:
Starbucks corporate identifies high-potential retail locations through demographic analysis and foot traffic modeling
Starbucks hires, trains, and employs store managers and baristas under company payroll with standardized compensation and benefits
Corporate controls supply chain directly, purchasing green coffee beans through C.A.F.E. Practices partnerships with farms in Colombia, Ethiopia, and Indonesia
Store-level operations adhere to detailed standard operating procedures covering espresso machine calibration, customer service protocols, and food safety standards
Revenue flows directly to Starbucks, with all product sales, food item margins, and loyalty program revenue retained by corporate
Data analytics from point-of-sale systems feed directly into product development, enabling rapid testing of seasonal offerings and personalized recommendations
Licensed store operations follow this distinct framework:
Starbucks partners with established retailersโTarget, Marriott International, Target, Grocery Outletโthat already control customer traffic and retail space
Partner organization funds build-out and equipment, reducing Starbucks capital requirements to essentially zero in most arrangements
Partner hires and trains baristas, though Starbucks requires completion of company-developed training certification through Starbucks Learning Journey platform
Partners operate the location independently, handling staffing decisions, scheduling, and local customer service while adhering to Starbucks brand guidelines
Revenue splits vary by partner type, with Starbucks receiving wholesale productmargin (30-40%) plus licensing fees on promotional items and branded merchandise
Starbucks conducts quarterly brand audits and mystery shopper evaluations to ensure licensed locations maintain quality and presentation standards
Starbucks Operated vs. Licensed Stores: Side-by-Side Comparison
Operating Model
Company-Operated Stores
Licensed Stores
Employment Model
Direct Starbucks employment; benefits eligible
Partner company employment; third-party payroll
Supply Chain Control
Direct sourcing; company-negotiated supplier contracts
Wholesale purchases through Starbucks Food Service Division
Strategic Rationale: Why Starbucks Maintains Dual Store Models
Advantages and Disadvantages of Starbucks Operated vs. Licensed Stores
Advantages of Company-Operated Stores:
Brand control excellence: Corporate standardization of beverage preparation, customer service protocols, and store presentation maintains premium brand perception and justifies 65-80% higher pricing versus McDonald’s and Dunkin’
Customer data ownership: Point-of-sale integration captures granular purchasing patterns, seasonal preferences, and geographic trends informing product development and location site selection across company stores
Employment relationship: Direct hiring enables benefits programs, equity compensation, and career development that strengthen employee retention and reduce training costs compared to partner-managed locations
Disadvantages of Company-Operated Stores:
Real estate risk: Long-term lease obligations averaging $60,000-$90,000 annually expose Starbucks to location obsolescence and neighborhood deterioration beyond corporate control
Advantages of Licensed Stores:
Zero capital requirement: Licensing arrangements require minimal upfront investment while providing immediate market presence and brand awareness in established retailer locations
Incremental revenue capture: Licensed locations in grocery stores, hotels, and offices reach customers during non-destination shopping occasions, generating beverage sales that wouldn’t occur at standalone Starbucks locations
Partner infrastructure leverage: Hudson Group, Target, and Whole Foods Fund facilities, staffing, and customer relationships, allowing Starbucks to scale without duplicating operational infrastructure
Geographic expansion efficiency: Licensed partnerships enable rapid market entry into secondary cities and smaller markets where standalone company stores couldn’t achieve payback profitability
Disadvantages of Licensed Stores:
Reduced brand control: Partner companies prioritize their own operations and customer experience, creating quality variance and menu simplification that dilutes Starbucks premium positioning
Limited customization: Licensed locations typically offer reduced menu options (12-15 beverage selections versus 50+ in company stores) reducing customer personalization and premium pricing opportunities
Partner dependency: Starbucks lacks direct control over partner hiring standards, training rigor, and store presentation, creating quality consistency risks mitigated only through quarterly audits
Key Takeaways
Capital allocation strategy prioritizes company-operated stores in major metropolitan areas and international markets including China and Japan where premium positioning justifies investment; licensed partnerships expand into secondary markets.
Point-of-sale data integration in company-operated stores informs product development and location site selection; licensed locations provide market coverage and brand visibility with minimal operational overhead.
Frequently Asked Questions
What is the primary difference between Starbucks company-operated and licensed stores?
Why does Starbucks maintain both company-operated and licensed store formats if licensed stores are more profitable per location?
How much capital does Starbucks invest per company-operated store?
Do licensed store baristas receive Starbucks benefits and employment?
What revenue contribution do licensed stores provide to Starbucks total revenue?
How does Starbucks maintain quality standards in licensed store locations?
Starbucks enforces licensed store quality through quarterly brand audits, mystery shopper programs, and contractual compliance mechanisms embedded in licensing agreements. Licensed partners must adhere to Starbucks Standard Operating Procedures covering espresso machine calibration, drink preparation protocols, food safety standards, and store presentation specifications. Violations can result in license suspension or termination, creating financial incentive for partners to maintain standards. Company-operated stores enjoy daily corporate oversight enabling immediate remediation; licensed locations face less frequent monitoring creating quality variance risk. Starbucks Learning Journey training platform ensures all licensed baristas receive standardized instruction in espresso preparation and customer service protocols.
What geographic markets does Starbucks prioritize for company-operated store expansion?
How do comparable store sales differ between company-operated and licensed Starbucks locations?
Starbucks in charts
After the China retail sale, 67% of Starbucks' 41,304 stores are licensed. Source: Starbucks Form 10-K for fiscal 2025 (SEC EDGAR); Starbucks Q3 fiscal 2026 earnings release (Form 8-K, SEC EDGAR). Analysis by The Business Engineer.Company-operated stores bring in 83% of Starbucks revenue. Source: Starbucks Form 10-K for fiscal 2025 (SEC EDGAR). Analysis by The Business Engineer.
The Business Engineer view: capital-light where it can be
Licensed stores carry a lower gross margin but a higher operating margin, because licensees pay the operating costs and capital (Starbucks fiscal 2025 10-K). Moving China to a licensed model shifts 8,009 stores’ worth of capital off Starbucks’ books.
Starbucks is not a franchise in the traditional sense. The company operates through two models: company-owned stores (corporate locations) and licensed stores. Licensed locations are found in airports, grocery stores, and universities, but individual entrepreneurs cannot purchase standard Starbucks franchises like other restaurant chains.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
