Starbucks
The largest coffeehouse chain on earth, a Seattle company of roughly 40,000 stores that made the café a standard retail format.
7 figures on Starbucks, drawn from 5 Modern MBA case studies.
The figures
US dollars2
| Against its own chart | |||
|---|---|---|---|
| Average gross revenue per store by brand, 2000 | $1,600,000 | 1st of 8 · top $1,600,000 | Why Crumbl won't last |
| Average spend per order | $15 | 1st of 8 · top $15 | Why bubble tea is so profitable |
Percentages3
| Against its own chart | |||
|---|---|---|---|
| Store-level operating margins around the time of founding | 16% | 3rd of 6 · top 21% | Why Crumbl won't last |
| Store-level operating margin | 16% | 7th of 8 · top 40% | Why bubble tea is so profitable |
| Annual operating margins | 16% | 5th of 8 · top 40% | Why donut shops out-earn Krispy Kreme |
Counts1
| Against its own chart | |||
|---|---|---|---|
| US store count in 2006 against the leading brick-and-mortar brands of the period | 7,102 | 1st of 5 · top 7,102 | Why GameStop failed |
Measures1
| Against its own chart | |||
|---|---|---|---|
| Retail footprint in square feet | 1,700 | 1st of 7 · top 1,700 | Why omakase is suddenly everywhere |
Case studies covering Starbucks
Case study — Food & beverageWhy omakase is suddenly everywhereNo servers, no walk-ins, no storefront, revenue booked before the door opens. Omakase deleted every cost that kills a restaurant.11 min read
Case study — Food & beverageWhy Starbucks is fighting its own baristasIt can afford the raise. What it cannot afford is an operating margin that looks like a restaurant's.12 min read
Case study — Retail & brandsWhy GameStop failedThe pre-owned disc was a perpetuity at 47% margins. Then the publishers worked out how to make it non-transferable.14 min read
Case study — Food & beverageWhy donut shops out-earn Krispy KremeThe average Krispy Kreme grosses $119K a year. A 650 sq ft Portland shop grosses $600K at a 40% margin.12 min read
Case study — Food & beverageWhy bubble tea is so profitableA Sawtelle boba shop grosses $1.08M at a 30% store margin on $9 orders. The moat is the supply chain, not the brand.11 min read
Case study — Food & beverageWhy Crumbl won't lastMrs. Fields had its decade too. Crumbl store margins fell from 30% to 10% while corporate went from $4M to $152M.15 min read