starbucks-revenue-per-employee

Starbucks Revenue Per Employee

Business / By /

Starbucks generated over $94K per employee in 2023, compared to $80K revenue per employee in 2022, $75K in 2021, and over $103K in revenue in 2020.

Starbucks Related Visual Stories

Who Owns Starbucks

who-owns-starbucks
Starbucks’ main individual shareholder is Howard Schultz, the founder of Starbucks. Major institutional shareholders comprise BlackRock, with 7.18%, and The Vanguard Group, with 8.6% ownership. Starbucks follows a heavy-chained business model, where the company-operated stores play a critical role in the company’s long-term strategy, compared to McDonald’s heavy-franchised business model, where the long-term plan is to have over 95% of the stores as franchising.

Starbucks Business Model

starbucks-business-model
Starbucks is a retail company that sells beverages (primarily consisting of coffee-related drinks) and food. In 2023, Starbucks had 44% of company-operated stores vs. 56% of licensed stores which might make you think Starbucks is a franchise business, when in reality most of its revenue (nearly 82% in 2023) came from company-operated stores, thus making Starbucks a chain business model.

Starbucks Revenue

starbucks-revenue-breakdown
Starbucks follows a chain business model strategy, where most of its revenue comes from its owned stores. For instance, in 2023, with nearly $36 billion in revenue, most of the revenue came from owned stores ($29.46 billion) compared to franchised stores ($4.51 billion) and other revenue sources ($2 billion). Yet owned stores have higher operational costs compared to franchised stores.

Starbucks Profits

starbucks-profits
Starbucks generated $4.12 billion in 2023, compared to $3.28 billion in net earnings in 2022, $4.2 billion in 2021, and $928 million in 2020.

Starbucks Employee

starbucks-employees
Starbucks had 381,000 employees in 2023, compared to 402,000 employees in 2022, 383,000 in 2021, and 228,000 in 2020.

Starbucks Revenue Per Employee

starbucks-revenue-per-employee
Starbucks generated over $94K per employee in 2023, compared to $80K revenue per employee in 2022, $75K in 2021, and over $103K in revenue in 2020.

Starbucks Strategy

starbucks-strategy
Starbucks follows a chain business model, building its brand through its owned stores. And its owned stores are also where most of the revenue is generated. In addition, the owned stores are a great asset to keep experimenting with new products while maintaining tight control over the customer experience.

Starbucks Store Strategy

starbucks-store-strategy
In 2023, Starbucks operated 19,592vs. 18,253 licensed stores. Starbucks leverages primarily company-operated stores to keep tight control over product development, branding, distribution, and customer experience. It also leverages licensed stores for better amplification of brand, revenue, and profits.

Starbucks Revenue Per Store

starbucks-revenue-per-store
Starbucks generated over $945K per store in 2023, compared to $900K per store in 2022, $858K in 2021, and $720K in 2020.

Starbucks Revenue By Product

starbucks-revenue-by-product
Starbucks made 60% of its revenue, in 2023, from beverages, followed by other revenue, which accounted for 22% of the total revenue (that comprises packaged and single-serve coffees and teas, plus royalty and licensing revenues, beverage-related ingredients, serve ware, and ready-to-drink beverages, among other items.) and food, which accounted for 18% of the total sales in 2023.

Starbucks Mission Statement

starbucks-mission-statement-vision-statement
Starbucks’s mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”

Starbucks Competitors

starbucks-competitors
Starbucks is a multinational coffee chain headquartered in Seattle, Washington. It was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker in 1971. From a single and very humble bean roasting store in Pike Place Market, the company is now a global giant operating over 37,711 stores around the world. This large global footprint obviously increases the competition for Starbucks in many different markets. The coffee industry itself is also highly competitive, with established players including McDonald’s and Dunkin’ Donuts. 

Starbucks Organizational Structure

starbucks-organizational-structure
Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple overlapping chains of command and divisions.

McDonald’s vs. Starbucks

mcdonalds-vs-starbucks
McDonald’s and Starbucks sit in the opposite spectrum of retail business models. Indeed, whereas McDonald’s follows a heavily franchised business model, Starbucks follows a heavy-chained one.

Starbucks Mission Statement

starbucks-mission-statement-vision-statement
Starbucks highlights its mission as “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”

Starbucks SWOT Analysis

swot-analysis-of-starbucks
Starbucks is a global consumer brand with direct distribution, recognized brands, and products that make it a viable business. Its reliance on the Americas as a primary operating segment makes it a weakness. At the same time, Starbucks faces risks related to coffee beans price volatility. Yet the company still has global expansion opportunities.

More Resources

Discover more from FourWeekMBA

Subscribe now to keep reading and get access to the full archive.

Continue reading

Scroll to Top
FourWeekMBA