View Question
Q: Starbucks consumption ( Answered ,   1 Comment )
 Question
 Subject: Starbucks consumption Category: Business and Money Asked by: buckinghammike-ga List Price: \$50.00 Posted: 09 Feb 2005 11:04 PST Expires: 11 Mar 2005 11:04 PST Question ID: 471821
 ```How many people, on average, get their coffee from Starbucks every day? I know there are 6,740 Starbucks stores in the U.S.. I'm not interested in grocery store sales. I'm not concerned about sales outside the U.S.``` Request for Question Clarification by pafalafa-ga on 09 Feb 2005 12:37 PST ```Mike, The only relevant statistic I could find regarding your question is that Starbucks' revenue from its retail operations in the US in 2004 was \$3.7 billion. Assuming each customer spends \$5 per visit, then we have: \$3.7 billion / \$5 = 740 million customers per year in the US. On a daily basis, this comes out to an average of: 740 million / 365 = 2.03 million customers per day Starbucks operated 4,293 stores in the US in 2004 (where did you come across the 6,740 figure by the way...the data I've seen clearly indicate 4,293?]. Therefore, the average number of customers per store per day is: 2.03 million / 4,293 = 472 customers per day. Sounds reasonable to me...what do you think? pafalafa-ga``` Clarification of Question by buckinghammike-ga on 09 Feb 2005 13:33 PST ```Hi. Thanks for your help. I got the store number by calling Starbucks directly. Maybe they have an updated number. I wonder what the average beverage costs...I'm thinking a \$5 average may be a little high. The drink I usually get is among the more expensive at \$3.74. The revenue number is a very good start, though. If you were able to determine average cost of the beverage we'd be all set. I was guessing each store may have 500 customers a day, but if the average beverage is \$3.50, is \$1,750 a store each day enough to keep it going?``` Request for Question Clarification by pafalafa-ga on 09 Feb 2005 14:30 PST ```Mike, Although your question is specifically about coffee, don't forget that people buy other things at Starbucks, especially sandwiches, snacks, newspapers, bulk coffee, and even the occasional gift item. Given these other sales, I do think \$5 per customer is a reasonable guesstimate. I looked, but have not seen, and published information about what an actual "average" customer spends at Starbucks. Also, the 472-500 customers per day figure is an average, and but it certainly doesn't represent the business of a typical, high-volume, center-city Starbucks location, where the traffic is considerably higher than 500 a day, I would think. Anyway....given where we've arrived at for the moment, what else can I do for you to provide a complete answer to your question? Let me know, pafalafa-ga``` Clarification of Question by buckinghammike-ga on 09 Feb 2005 15:16 PST ```You're right. I did forget about the other items. I'm from Boston and the stores here are always choked with people. You're right, there are probably less-visited locations. I expected a higher number, but it seems you're right. Thanks. Mike```
 ```Hey, MIke. Thanks for confirming the value of the numbers I presented earlier. If you haven't already, you might want to take a look at Starbucks' 10K annual report that they filed with the SEC (it is different than the corporate annual report that they provide to investors). You can find a copy of it here: http://ir.10kwizard.com/?source=518 It's the 10K report dated 12/10/2004 that I suggest looking through. It's chock full of information and analysis about their operations, and it may contain information of interest to you, beyond the numbers that I extracted for my analysis. Speaking of which, I'm re-posting the analysis as part of this answer, for the sake of completeness: ---------- The only relevant statistic I could find regarding your question is that Starbucks' revenue from its retail operations in the US in 2004 was \$3.7 billion. Assuming each customer spends \$5 per visit, then we have: \$3.7 billion / \$5 = 740 million customers per year in the US. On a daily basis, this comes out to an average of: 740 million / 365 = 2.03 million customers per day Starbucks operated 4,293 stores in the US in 2004 (where did you come across the 6,740 figure by the way...the data I've seen clearly indicate 4,293?]. Therefore, the average number of customers per store per day is: 2.03 million / 4,293 = 472 customers per day. ---------- Please don't rate this answer until you are satisified you have everything you need. If there's anything else I can do for you on this, just post a Request for Clarification, and I'm at your service. Thanks again, pafalafa-ga search strategy: conducted several Google searches for terms related to Starbucks and its retail customer base, but all significant information emerged from the 10K report cited above.```
 buckinghammike-ga rated this answer: `Thanks for all your help. I plan to check out that report.`
 ```In a question I answered last year, I cited a quote from Starbuck's CEO to the effect that the average transaction was "less that \$4." http://answer.google.com/answers/threadview?id=322401```