Starbucks Achieves Record Revenues

Date: MAY 8th, 2013

Topic: Franchise News

Recently, Starbucks announced that its net revenues increased from $3.44 billion in 2011 to a record $3.8 billion in 2012. This represents an increase of 11 percent. In addition, same store sales growth rose by a total of seven percent in the U.S. and six percent in other locations throughout the world. These numbers, according to analysts, were given a boost by increases in the company's revenues in the U.S., as well as in markets in Asia and China.

Overall, the year of 2012 was a year of expansion and increased profits for Starbucks. The company opened a total of 212 new stores around the world, including three stores in a brand new market, namely India. In addition, 1.4 million new members joined the My Starbucks Rewards club in the U.S., representing an increase of 86 percent from the 778,000 new members that were reported the year before.

According to Starbucks Chairman, President and CEO, Howard Schultz, these record numbers indicate the continued strength and increasingly strong global presence of Starbucks to communities and consumers around the world. Schultz added that Starbucks has never been in a better position to achieve its goals for worldwide expansion.

Starbucks company projections indicate that revenues throughout 2013 may increase by as much as 10-13 percent. These numbers reflect not only the company's current sales increases, but also the planned opening of new stores in the coming months. To more aggressively boost its expansion plans, Starbucks has earmarked about $1.2 billion for capital expenditures for 2013.

According to Starbucks CFO, Troy Alstead, the continued operational excellence of Starbucks stores, as well as the diversity and high quality of growth drivers within the business, have made Starbucks executives confident that the company will continue to experience strong, sustainable and profitable growth.

For those who are interested in investing in a Canadian franchise, Starbucks offers franchising opportunities in Seattle's Best, a coffee subsidiary owned by Starbucks. Like Starbucks, Seattle's Best is also an iconic brand with a proven track record for profitability. In addition, Seattle's Best constantly updates its coffee and menu offerings to appeal to contemporary tastes and periodically updates its company policies to conform to more eco-friendly practices.

A Seattle's Best franchise for a full-size restaurant typically costs between $298,000 - $481,000 and franchisees are required to pay an annual royalty of eight percent of the gross revenues, which includes one percent going toward advertising and marketing costs. In addition to the benefits of owning a franchise with an instantly recognizable brand, Seattle's Best franchisees can also have the satisfaction of owning and operating a restaurant that is internationally popular for its high quality coffee drinks and diverse menu options, all served in a comfortable, relaxed setting.

Another advantage for franchisees is that they can start at a variety of different investment levels, depending on whether they want to operate a kiosk, a coffee cart or a full size cafe.