Google Answers Logo
View Question
 
Q: Average sale at Starbucks in USA ( Answered 4 out of 5 stars,   7 Comments )
Question  
Subject: Average sale at Starbucks in USA
Category: Business and Money
Asked by: neobobkrause-ga
List Price: $10.00
Posted: 30 Mar 2004 08:45 PST
Expires: 29 Apr 2004 09:45 PDT
Question ID: 322401
I want to know average dollar amount of Starbuck's typical US sale for
some recent annual period. This "average ticket amount" is calculated
by dividing the total sales volume by the total number of sales in the
entire country for a 12 month period. The beginning of the cited
period must be Janurary 2002 or later.
Answer  
Subject: Re: Average sale at Starbucks in USA
Answered By: markj-ga on 01 Apr 2004 06:08 PST
Rated:4 out of 5 stars
 
neobobkrause - -

Thanks for your helpful comment, and I believe that this answer fully
satisfies your criteria.

The quote I have found comes directly from Orin C. Smith, President
and CEO of Starbucks Coffee Company.  Here it is, along with the lines
that precede it, which will give you a little of  its context:

"It's easy to hear the note of satisfaction and pride in Smith's
voice, and while he's too modest to openly acknowledge his leadership
role in Starbucks' phenomenal success, he's too honest to discount the
effort it involved. 'If you look at our history, the ocean looks
pretty tranquil,' he says. 'But there's a lot of churning going on
below the surface. To grow a company as rapidly as we have is unusual,
particularly when you consider the fact that our average transaction
is less than four dollars.'

The quote is included in a profile of Smith that was prepared by
Harvard Business School in connection with the granting of Awards for
Alumni Achievement 2002 to four alumni.  Here is a link to the
complete profile:
Harvard Business School: Awards for Alumni Achievement 2002: Orin C. Smith
http://www.hbs.edu/about/news/AAA/smith.html

The Awards for Alumni Achievement 2002 were announced by the Harvard
Business School on November 11, 2002.  Here is that announcement,
which includes links to the profiles of all four of the 2002 winners:
Harvard Business School: Working Knowledge: Entrepreneurship
http://hbswk.hbs.edu/item.jhtml?id=3177&t=entrepreneurship

The quotes in the profiles from Mr. Smith and the other recipients of
the 2002 awards are all introduced in the present tense ("he says,"
etc.) making it clear from the context that they are reasonably
contemporaneous with the granting of the awards.


Additional Information:

A reputable journal published a 1995 case study involving Starbucks,
which was written with the cooperation and input of Starbucks
management and related to "real" events.  In that case study, the
"average customer transaction" at that time was stated as being 
"approximately $3.01, about the price of a large espresso":
Starbucked: Case Study: Case Research Journal: Dorosin v. Starbucks
http://www.starbucked.com/public_html/case_study/casemain.html

A 1995 anecdote like that obviously is of little value to you.  But I
found it interesting that a large ("venti") espresso apparently
continued to correlate roughly to the amount of an average transaction
at Starbucks.  That is, the cost of espresso apparently had risen to
$3.80 by early 2003, about the time when the average customer
transaction was, according to Starbucks CEO Smith, "less than $4.00":

"Compared to other specialty coffee shops the products sold at
Starbucks are priced a bit higher. A small coffee-of-the-day cost
$1.25 and an extra large, Venti, Espresso Frappuccino cost $3.80."
San Jose State Business School: Creating the Starbucks Experience:
Global Expansion and Strategic Planning: Maryann Ferrer, et al.:
4/28/03
http://216.239.39.104/search?q=cache:g3bQow5E-KQJ:www.cob.sjsu.edu/facstaff/kwan_p/Section%252010%2520presentations/Starbucks.doc+starbucks+%22large+OR+largest+OR+venti+espresso%22+costs&hl=en&ie=UTF-8


Search Strategy:

I used various Google searches combining the term "starbucks" with
other terms such as "average customer," "average transaction" "average
customer transaction," and many other permutations designed to
minimize irrelevant results.


Based on your helpful comment, I am confident that this information
will suit your purposes.  If any of the above is unclear, please ask
for clarification before rating this answer.

markj-ga
neobobkrause-ga rated this answer:4 out of 5 stars and gave an additional tip of: $1.50
While markj's answer didn't meet all the initial criteria I'd set when
posing the question, he submitted a comment beforehand asking whether
what he had was sufficient. I responded that as long as it met a
modified criteria I gave him, that his answer would be sufficient,
which it was. His answer was very complete and included sufficient
context for me to properly assess its value. Good job markj.

Comments  
Subject: Re: Average sale at Starbucks in USA
From: alwaystheretrading-ga on 30 Mar 2004 23:18 PST
 
According to the following website <a
href="http://albuquerque.bizjournals.com/albuquerque/stories/2003/07/21/daily16.html">
here</a>"Seattle-based coffee retailer Starbucks Corp. (Nasdaq: SBUX),
which operates 22 stores in New Mexico, reported an increase in net
income for the third quarter of fiscal 2003 ending June 29, 2002. Net
income was $68.4 million, or 17 cents per share, compared with $55.7
million, or 14 cents per share, during the same period last year. This
represents a 23% increase for the quarter. For the quarter, the
retailer also reported a 8% jump in comparable-store sales, or stores
open at least 13 months, compared to the same period last year. Net
revenues were $1 billion, compared with $835 million, during the same
period last year. Starbucks also beat analyst expectations by a penny.
Founded in 1971, Starbucks operates more than 5,000 locations
nationwide and employs 54,000." This doesn't actually answer all of
your question because you want US sales. I found the annual Report for
Starbucks <a href="http://www.hoovers.com/free/co/secdoc.xhtml?ipage=2489823&doc=0&attach=on">
here</a> and among other things it says "The Company's United States
operations ("United States") represent 86% of retail
revenues, 81% of specialty revenues and 85% of total net revenues.
Company-operated retail stores sell coffee and other beverages, whole bean
coffees, complementary food, coffee brewing equipment and merchandise.
Non-retail activities within the United States include: licensed operations,
foodservice accounts and other initiatives related to the Company's core
businesses."

I hope this helps!
Subject: Re: Average sale at Starbucks in USA
From: marklangenkamp-ga on 31 Mar 2004 05:48 PST
 
This query is looking to find the average amount of individual sale at
the register for recent years.
Subject: Re: Average sale at Starbucks in USA
From: neobobkrause-ga on 31 Mar 2004 15:31 PST
 
alwaystheretrading-ga,

While appreciate the effort, this is information I'd already seen. As
marklangenkamp-ga indicates, I'm really looking for a recent reference
to Starbuck's average ticket.

Thanks for any help.
Subject: Re: Average sale at Starbucks in USA
From: markj-ga on 31 Mar 2004 16:59 PST
 
neobobkrause --

I expect that it is not good enough for your purposes, but I can tell
you what the company's CEO said in 2002 was the average ticket amount
at that time, without any explanation as to whether the amount was a
snapshot or was averaged over a period of time.  Also, his statement
is in the form of a "less than" approximation, which may or may not be
specific enough for you.

markj-ga
Subject: Re: Average sale at Starbucks in USA
From: neobobkrause-ga on 31 Mar 2004 19:33 PST
 
If you can give me an CREDIBLE, attributable quote (who said it? what
was said? was he trying to tell the audience that the average ticket
was not some amount? who says he said it? where did he say it? when
did he say it?) then I'll settle for that as an answer. But it's got
to meet all the above critieria.
Subject: Re: Average sale at Starbucks in USA
From: markj-ga on 01 Apr 2004 10:26 PST
 
neobobkrause --

Thanks much for the kind words and the tip.

markj-ga
Subject: Re: Average sale at Starbucks in USA
From: divanov-ga on 23 May 2004 15:19 PDT
 
you may want try searching knowledge@wharton
http://knowledge.wharton.upenn.edu there were some good reseach papers
on Starbucks strategy.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy