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Starbucks’ Licensed and Company Owned Stores (2015 – 2021)

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This statistic highlights Starbucks’ Licensed and Company Owned Stores from Q2 2015 onwards.
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This statistic highlights Starbucks’ Licensed and Company Owned Stores from Q2 2015 onwards.

Starbucks’ Licensed and Company Owned Stores.

Starbucks operates two types of stores:

  • Company Operated stores 
  • Licensed stores
Category  Q2 2021 Q2 2020 YoY Growth Contribution in Q2 2021 No. of New stores opened
Company-operated Stores 16,656 16,188 3% 51% 468
Licensed Stores 16,287 15,862 3% 49% 425
Total 32,943 32,050 3% 100% 893

Starbucks evaluates different factors like neighborhood income, traffic per day, proximity to other businesses, availability of parking, crime rates in the region, consumer behavior, economic conditions, local business practices, etc. while setting up a store.

Company Operated stores 

Starbuck’s retail objective is to be a leader in the brand of coffee and tea in each of its target markets by retailing the finest quality tea, coffee, and other products along with complementary foods. It aims in providing a unique Starbucks Experience by providing superior customer service in clean and well-maintained stores. This helps them in building a high degree of customer loyalty. All this is done with the view to maintain as much control over its customer experience by operating most of its stores.

Starbucks generated a total of $667 billion in Q2 2021 of which the company-operated stores contributed $565 billion. Also, there have been 19% year-over-year growth in revenue earned by company-operated stores from Q2 2020.

In Q2 2020, Starbucks had 16,188 company-operated stores. By the end of Q2 2021, 468 new stores were opened which lead to a total of 16,656 company-operated stores.

The United States has the highest number of company-operated stores that is 8857 stores followed by China with 4973 stores in Q2 2021. 

Licensed stores

Starbucks does not offer franchises instead one can operate a licensed store of Starbucks. In such an arrangement the individual is not the owner of the outlet. This allows Starbucks to exercise greater control over the working of the outlet. In this method, the individual who wants to obtain the license will have to select a prominent location where there is a high footfall and then through the company’s website apply for the license. Once Starbucks is satisfied with the individual’s capability to run the store, the license will be given along with products and necessary training to individual and staff members.

Entering into licensing arrangements enables Starbucks to operate in locations that are otherwise are not easily accessible like airports, small colleges, grocery chains, and large universities.

Licensed Stores contributed 10% of revenue in Q2 2021 amounting to $595 million. However, there have been adverse year-over-year growth of -14% from Q2 2020 this is primarily due to lower product and equipment sales and royalty revenues from the licensees.

In Q2 2020, Starbucks had 15,862 Licensed Stores. By the end of Q2 2021, 425 new stores were opened which lead to a total of 16,287 licensed stores.

The United States has the highest number of Licensed Stores followed by China and South Korea.   

Company overview

Starbucks Corporation is an American-based company established in March 1971 by Gordon Bowker, Jerry Baldwin, and Zev Siegl. Its headquarters is located in Seattle, Washington. Starbucks completed its initial public offering in June 1992 and its common stocks are listed on the NASDAQ Global Select Market under the trading symbol “SBUX”

At the time of IPO it had 140 outlets and today it has its presence in 6 continents and 78 countries with more than 32,000 outlets worldwide. Starbucks purchases and roasts high-quality coffees that are sold along with handcrafted tea, coffee, and other beverages. Along with the Starbucks Coffee brand, it also operates under other brands like Seattle’s Best Coffee, Teavana, SEvolution Fresh, Princi, Ethos, and Starbucks Reserve. It offers a variety of ready-to-drink beverages, such as Frappuccino, Starbucks Refreshers, Starbucks Doubleshot, and TeavanaTM/MC iced tea. It also offers consumer-packaged goods through the Global Coffee Alliance established with Nestlé and other partnerships and joint ventures like PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Anheuser-Busch Companies, LLC, etc.

Costa, Dunkin Donuts, Café Coffee Day, and McDonald’s McCafe are the major competitors of Starbucks.

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