Starbucks Corporation (NASDAQ: SBUX) is an international coffee and coffeehouse chain based in Seattle, Washington, USA. Starbucks is the largest coffeehouse company in the world,[2] with 16,120 stores in 44 countries.[3] Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also sold at grocery stores.
From Starbucks' founding in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. Domestic growth has since slowed, although the company continues to expand in foreign markets and will open a net of 900 new stores outside of the U.S. in 2009.[4] The first location outside of the United States and Canada was established in 1990s, and they now constitute almost one third of Starbucks' stores.[5]
By late March 2008, Starbucks had more than 16,226 stores worldwide, including 11,434 stores located in the United States. On July 1, 2008, the company announced it was closing 600 under-performing company-owned stores and cutting U.S. expansion plans amid growing economic uncertainty.[6][7] On July 29, 2008, Starbucks also cut almost 1,000 non-retail jobs as part of its bid to re-energize the brand and boost its profit. Of the new cuts, 550 of the positions are layoffs and the rest are unfilled jobs.[8] These closings and layoffs have effectively ended the company’s period of growth and expansion that began in the mid-1990s.
On January 28, 2009, Starbucks announced the closure of an additional 300 under-performing stores, and the elimination of 7,000 positions. CEO Howard Schultz also announced that he had received board approval to reduce his salary to $10,000 per year.[9]
From Starbucks' founding in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. Domestic growth has since slowed, although the company continues to expand in foreign markets and will open a net of 900 new stores outside of the U.S. in 2009.[4] The first location outside of the United States and Canada was established in 1990s, and they now constitute almost one third of Starbucks' stores.[5]
By late March 2008, Starbucks had more than 16,226 stores worldwide, including 11,434 stores located in the United States. On July 1, 2008, the company announced it was closing 600 under-performing company-owned stores and cutting U.S. expansion plans amid growing economic uncertainty.[6][7] On July 29, 2008, Starbucks also cut almost 1,000 non-retail jobs as part of its bid to re-energize the brand and boost its profit. Of the new cuts, 550 of the positions are layoffs and the rest are unfilled jobs.[8] These closings and layoffs have effectively ended the company’s period of growth and expansion that began in the mid-1990s.
On January 28, 2009, Starbucks announced the closure of an additional 300 under-performing stores, and the elimination of 7,000 positions. CEO Howard Schultz also announced that he had received board approval to reduce his salary to $10,000 per year.[9]
Type
Public (NASDAQ: SBUX)
Founded
In 1971 across from Pike Place Market in Seattle, Washington
Founder(s)
Zev Siegel, Jerry Baldwin and Gordon Bowker
Headquarters
Seattle, Washington, USA
Key people
Howard Schultz, Chairman, President and CEOMartin Coles, President, Starbucks InternationalTroy Alstead, Chief Financial OfficerStephen Gillett, Chief Information Officer
Industry
RestaurantsRetail Coffee and TeaRetail BeveragesEntertainment
Products
Whole Bean CoffeeBoxed TeaMade-to-order beveragesBottled beveragesBaked GoodsMerchandiseFrappuccino beveragesSmoothies
Services
Coffee
Revenue
▲ US$9.411 billion (2007)
Operating income
▲ US$1.053 billion (2007)
Net income
▲ US$672.64 million (2007)
Total assets
US$5.343 billion (2007)
Total equity
US$2.284 billion (2007)
Employees
172,000 (2008)[1]
Subsidiaries
Starbucks Coffee CompanyTazo Tea CompanySeattle's Best CoffeeTorrefazione ItaliaHear MusicEthos Water
Website
Starbucks.com
