Is Starbucks a franchise? (It’s not what you think)
There are many advantages to opening a franchise store as it provides popular products for well-known brands. That’s why the idea of opening a Starbucks franchise is attractive to many retailers.
If so, you might be wondering if Starbucks is a franchise and how you can capitalize on its massive success. Here’s what I found!
Is Starbucks a franchise?
Unlike many other retail giants in the food and beverage industry, Starbucks does not offer franchise opportunities for its U.S. stores. However, Starbucks does license kiosks and stands in locations such as airports, bookstores, hospitals and college campuses. In addition, Starbucks also allows people to invest in its shares through the stock market.
To learn more about why Starbucks doesn’t have a franchise, how to get involved, and more, read on!
Does Starbucks offer any alternatives to franchises?
While Starbucks doesn’t offer franchise opportunities in the U.S., it does license small kiosks and stands in locations such as airports, hospitals, bookstores and college campuses.
The best chance of opening a licensed Starbucks booth is if the location will allow the company to reach new demographics. However, opening a licensed Starbucks store isn’t cheap.
To become a Starbucks licensee, you need an initial investment of approximately $315,000. Starbucks is also very picky about the location of its franchise locations, which must be in high-traffic areas with a high number of walk-in customers.
Starbucks will support licensees through store design, equipment, menus, training and promotions.
Additionally, Starbucks does offer franchise opportunities for its stand-alone stores outside the U.S., Europe, the Americas, Asia, and Africa.
Why doesn’t Starbucks have a franchise?
The company itself owns all of the stand-alone Starbucks stores in the United States. Unlike other chain giants in the food and beverage industry, Starbucks has not used franchises to expand its business.
That’s because former Starbucks CEO Howard Schultz, who oversaw the company’s expansion, didn’t want to lose its uniqueness.
The Seattle-based chain began in 1971, and its stores sell coffee beans, spices and teas. Schultz joined in 1982 and came up with the idea for the café based on his travels in Italy.
He wanted a café that focused on the quality of the coffee it sold, as well as the atmosphere and customer experience.
In 1984, following this idea, Starbucks served the first latte in downtown Seattle, which became the first store. Since then, the company has been opening new locations and shows no signs of slowing down.
Howard Schultz wrote in his book Devotion It is the unique culture and values of the company that make it unique. He wants customers to value the Starbucks experience.
This unique experience has always been the secret to Starbucks’ commercial success. Since that experience was difficult to maintain in franchised stores, Starbucks retained ownership of all of its freestanding stores in the United States.
In addition, Starbucks also provides its employees with professional training and special perks and benefits such as stock options. Starbucks employees have a unique relationship with the company that is difficult to maintain in the franchise model.
How else can you get involved with Starbucks?
If you like Starbucks and its products, there are some other ways you can explore to get involved. You can invest in Starbucks stock to share in the profitability.
You might also consider working for Starbucks. Employees receive a variety of perks and benefits, including health insurance, stock options, and college tuition.
What other companies offer franchises?
If you’ve made up your mind to open a franchise of a well-known brand, there are several other options besides Starbucks.
Additionally, chains such as 7-Eleven, Dunkin’ Donuts, KFC, and McDonald’s all offer franchise opportunities.
In fact, companies like Dunkin’ Donuts and 7-Eleven rely on franchises to expand their reach and market share. They help retailers build their franchises every step of the way.
The Secret of Starbucks’ Success
Most of the large retail chains in the food and beverage industry, such as McDonald’s, Dunkin’ Donuts, 7-Eleven, KFC, etc., rely on franchising to help expand their locations and outlets in different markets.
Franchising offers them the opportunity to expand at less cost and with less investment of resources. However, Starbucks has managed to expand its stores without franchising.
The company has more than 32,000 stores in 83 locations around the world. It has a 57% share of the overall coffee shop market in the United States, making it the largest coffee chain in the country.
The name and logo of Starbucks coffee are well known and recognized all over the world. Incidentally, the name is taken from the coffee-loving first mate in Herman Melville’s classic novel Moby-Dick.
Most people mistakenly identify the long-haired woman in the Starbucks logo as a mermaid. In fact, she is a two-tailed siren, another figure from Greek mythology.
Who owns Starbucks?
In 1987, Howard Schulz bought Starbucks stores and created Starbucks Corporation.
Starbucks has been a public company since its initial public offering in 1992. The company’s symbol on the NASDAQ exchange is SBUX.
All Starbucks coffeehouses in the United States are owned and operated by the company. Outside the United States, stand-alone Starbucks stores do operate as franchises.
What is the Starbucks Experience?
The Starbucks success story is based on the neighborhood cafe model developed by Howard Schultz based on his travels in Italy.
With comfortable living room-style seating, a selection of premium gourmet coffees and beverages, pastries and sandwiches, and trained baristas, Starbucks offers a fusion of neighborhood and sophistication.
Schultz’s original idea was to make the Starbucks experience part of people’s everyday lives. All Starbucks stores provide customers with free wireless Internet service.
Starbucks stores have become a favorite place for people to meet friends, catch up on work or grab a cup of coffee on their morning commute.
The popularity of this model has led many people to want to open a Starbucks franchise. While that’s unlikely, there are a few possible alternatives since the company owns all of its US stores.
To learn more, you can also check out our related posts on How Much Does a McDonald’s Franchise Cost, Is Sam’s Club a Franchise, and Is Kroger a Franchise.
in conclusion
Unfortunately for retailers interested in opening cafes, Starbucks is not a franchise. However, you can open a Starbucks-licensed kiosk in a specific location, or explore franchise options with other companies.
