Starbucks Franchise
Starbucks Franchise
With over $7 billion in annual revenues, Starbucks is one of the leaders in the industry. But, for those looking to join the Starbucks family, the franchising opportunities are limited. Unfortunately, it is not possible to own a Starbucks franchise as an individual entrepreneur, and the almost 9,000 Starbucks outlets around the world are privately owned by the company. While the Starbucks franchise is not up for sale, there are other options for those looking to get involved.
Starbucks restricts its dealings to corporations, companies or groups of people. It engages primarily in joint venture and licensing agreements with stores where it did not originally have the ability to create its own store outlet. For instance, it first made such an agreement with Marriott Host International, allowing a Starbucks outlet to be placed in various airports throughout the U.S. It also signed a deal with Aramark Food and Services to allow Starbucks stores on its associated university campuses. Similar to what would have happened with a Starbucks franchise, every Starbucks outlet that was licensed out still had to follow company operating and training procedures.
Another strategy that the company uses to expand instead of selling the Starbucks franchise is through providing Starbucks products to various retailers, restaurants, airlines, hotels, businesses, country clubs, hospitals and hotels. The company created a specialty sales group to manage these operations. For example, in 1995, Starbucks signed an agreement with United Airlines to serve their coffee to the over 20 million passengers who fly United each year. Similar arrangements were made with Nordstrom, Barnes & Noble and Wells Fargo Bank. This division of specialty sales now makes up roughly 15 per cent of Starbucks’ total revenues.
As the company began to expand internationally, it decided that here, too, selling the Starbucks franchise was not its preferred business model. Instead, it entered into similar agreements as in the U.S. In Canada, Starbucks began selling its products at Chapters and Costco nationwide. Outside the continental U.S., Starbucks began licensing agreements with local companies who were already established in the desired market who could then develop and operate the new stores. Starbucks Coffee International was created to oversee this expansion via licensing agreements.
Thus, although it is not possible to purchase outright a Starbucks franchise, there are still agreements that interested parties can seek out. The company is always searching for additional opportunities to increase distribution of their products, whether through licensed stores, business alliances or specialty sales. So, you can’t buy a Starbucks franchise, but that doesn’t have to be the end of the story. Keep those business ideas brewing!
Starbucks Franchise - To learn more about this author, visit Starbucks Starbucks's Website.
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The coffee industry is one of the most robust in the world, with the public’s ever-increasing demand for superior quality and better-grade coffee. The practice of drinking coffee is no longer simply a household morning routine; it has become a regular part of everyday work and leisure. There is thus no shortage of entrepreneurs trying to find their way into the industry through franchising opportunities.
With over $7 billion in annual revenues, Starbucks is one of the leaders in the industry. But, for those looking to join the Starbucks family, the franchising opportunities are limited. Unfortunately, it is not possible to own a Starbucks franchise as an individual entrepreneur, and the almost 9,000 Starbucks outlets around the world are privately owned by the company. While the Starbucks franchise is not up for sale, there are other options for those looking to get involved.
Starbucks restricts its dealings to corporations, companies or groups of people. It engages primarily in joint venture and licensing agreements with stores where it did not originally have the ability to create its own store outlet. For instance, it first made such an agreement with Marriott Host International, allowing a Starbucks outlet to be placed in various airports throughout the U.S. It also signed a deal with Aramark Food and Services to allow Starbucks stores on its associated university campuses. Similar to what would have happened with a Starbucks franchise, every Starbucks outlet that was licensed out still had to follow company operating and training procedures.
Another strategy that the company uses to expand instead of selling the Starbucks franchise is through providing Starbucks products to various retailers, restaurants, airlines, hotels, businesses, country clubs, hospitals and hotels. The company created a specialty sales group to manage these operations. For example, in 1995, Starbucks signed an agreement with United Airlines to serve their coffee to the over 20 million passengers who fly United each year. Similar arrangements were made with Nordstrom, Barnes & Noble and Wells Fargo Bank. This division of specialty sales now makes up roughly 15 per cent of Starbucks’ total revenues.
As the company began to expand internationally, it decided that here, too, selling the Starbucks franchise was not its preferred business model. Instead, it entered into similar agreements as in the U.S. In Canada, Starbucks began selling its products at Chapters and Costco nationwide. Outside the continental U.S., Starbucks began licensing agreements with local companies who were already established in the desired market who could then develop and operate the new stores. Starbucks Coffee International was created to oversee this expansion via licensing agreements.
Thus, although it is not possible to purchase outright a Starbucks franchise, there are still agreements that interested parties can seek out. The company is always searching for additional opportunities to increase distribution of their products, whether through licensed stores, business alliances or specialty sales. So, you can’t buy a Starbucks franchise, but that doesn’t have to be the end of the story. Keep those business ideas brewing!
Starbucks Franchise - To learn more about this author, visit Starbucks Starbucks's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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