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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. |
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Subject:
Re: Average sale at Starbucks in USA
Answered By: markj-ga on 01 Apr 2004 06:08 PST Rated: |
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:
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. |
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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. |
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