![]() ![]() Starbucks believes investing in partner wages and training will increase retention and productivity. Starbucks has plans to increase the efficiency of its business model while elevating the partner and customer experience (the “Reinvention Plan”). Starbucks’ ability to vary the size and format of its stores allows it to locate them in or near various settings, including downtown and suburban retail centers, office buildings, university campuses, and rural and off-highway locations. Starbucks company-operated stores are typically located in high-traffic, high-visibility locations. The Starbucks Experience is built upon superior customer service, convenience, and a seamless digital experience, as well as safe, clean and well-maintained stores that reflect the personalities of the communities in which they operate, thereby building a high degree of customer loyalty. Starbucks’ retail objective is to be the leading retailer and brand of coffee and tea in each of Starbucks’ target markets by selling the finest quality coffee, tea, and related products, as well as complementary food offerings, and by providing each customer with a unique Starbucks Experience. Revenue from company-operated stores accounted for 82% of total net revenues during FY22. Other revenues increased by $249 million, primarily due to higher product sales and royalty revenue in the Global Coffee Alliance and growth in its ready-to-drink business.Licensed stores’ revenue increased by $972 million, primarily driven by higher product and equipment sales and royalty revenues from its licensees.The growth in company-operated store revenue was driven by an 8% increase in comparable store sales ($1.8 billion), attributed to a 5% increase in average tickets and a 2% increase in similar transactions.Total net revenues increased $3.2 billion, or 11%, over fiscal 2021, primarily due to higher revenues from company-operated stores ($2.0 billion). The mix of company-operated versus licensed stores in a given market generally varies based on several factors, including its ability to access desirable local retail space, the complexity, profitability, and expected ultimate size of the market for Starbucks, and its ability to leverage the support infrastructure within a geographic region.
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