How Starbucks Became An $80B Business - - vimore.org

How Starbucks Became An $80B Business

How Starbucks Became An $80B Business

YouTube

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. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Starbucks How Starbucks Became A $80B Business



Subway - Not Starbucks Or McDonald's - Has The Most Locations

Despite the seeming ubiquitousness of McDonald's golden arches and the Starbucks mermaid, the sandwich chain Subway actually has the most locations of any resta

YouTube

Why WeWork Is Considering An IPO Despite Losing $1.9B in 2018

WeWork's parent company, The We Company, is set to go public this year. It's the latest in a string of richly valued start-ups considering an IPO in 2019. Even

YouTube

How Scammers in China Manipulate Amazon

Chinese sellers resort to a wide range of cunning techniques to manipulate product listings on Amazon and boost sales. WSJ’s Jon Emont investigates their strate

YouTube

Why Jaguar And Land Rover Face Uncertain Futures

Jaguar and Land Rover are two iconic automotive brands with rich heritages. They also have rocky histories of being passed between owners, with BMW owning Land

YouTube

People living in tiny spaces - Hong Kong: World's Busiest Cities | BBC Two

SUBSCRIBE to the OFFICIAL BBC YouTube channel 👉 https://bit.ly/2IXqEIn LAUNCH BBC iPlayer to watch full BBC programmes online now 👉 https://bbc.in/2J18jYJ Pr

YouTube

What is Softbank? | CNBC Explains

Japanese multinational conglomerate, Softbank is an investing powerhouse, investing in the likes Alibaba and Uber. CNBC's Uptin Saiidi travels to Tokyo to expla

YouTube

How Nike Became The Most Powerful Brand In Sports

Nike is one of the most recognized brands in the world. It continues to surpass rivals like Adidas and Under Armor, despite controversy and slowing sales growth

YouTube

Why Medical Bills In The US Are So Expensive

The American health-care system is in a tug of war between physicians, hospitals, insurance companies, pharmaceuticals and shareholders. At the center of it all

YouTube

Why Airbus And Boeing Dominate The Sky

Airbus and Boeing dominate an already under competitive airline manufacturing industry. The duopoly owns the sky by making up 99% of global large aircraft orde

YouTube

How JetBlue Is Challenging American, United and Delta

In just two decades, JetBlue Airways became a major mainstream player in the U.S. airline industry. But in 2018, its shares plummeted. To keep up in the big lea

YouTube

How Jeff Bezos Makes And Spends His Billions

Jeff Bezos is the wealthiest person in the world, with a net worth of $156 Billion. He has five real estate investments and is one of the country's largest land

YouTube

Why Is Costco Opening Its Own Chicken Farm?

In fall 2019, Costco will open a chicken farming operation in eastern Nebraska. This venture will provide Costco with 100 million chickens, or 40 percent of its

YouTube

Why Dunkin' Donuts Is Failing in India

Dunkin' Brands has become synonymous with breakfast pretty much everywhere, with more than 12,600 restaurants in 46 countries. In the United States, Dunkin' has

YouTube

How did Dubai get so rich? | CNBC Explains

Dubai is a global business hub and luxury tourist destination that boasts the world’s tallest building and a police force that drive supercars. So how did it ge

YouTube

What is Flipkart? | CNBC Explains

It's India's largest online retailer and in 2018, retail giant Walmart announced its intent to acquire a controlling stake in the company for $16 billion, makin

YouTube

How Target Is Challenging Amazon

As it redesigns its stores, Target is getting back to offering fashion-forward merchandise at decent prices. If it can keep that momentum going, it will help se

YouTube

Why is India growing so fast? | CNBC Explains

India is poised to be the world's fastest-growing major economy this year. CNBC's Xin En Lee explains what the world's second most populous economy has going fo

YouTube

How JP Morgan Chase Became The Largest Bank In The US

From the railroad and steel consolidations brokered by John Pierpont Morgan on Wall Street more than a century ago, to banking consolidation, the financial cris

YouTube

Why KFC Can't Compete With McDonald's In Israel

KFC has tried, but failed, three times to appeal to the Israeli market. Starbucks, Subway, and Dunkin' have all had to call it quits in Israel, but unlike its r

YouTube

Why Levi's Dominates Denim

Levi Strauss & Co. is considering an IPO in 2019. Levi's patented jeans in 1873 and remains the biggest denim retailer in the U.S. 150 years later. Though it of

YouTube