Contrary to popular belief, Starbucks does not just sell coffee. Since it opened for business in 1971 in Seattle, the company has grown and expanded its product lines significantly. Today it offers food items and a variety of teas, juices and bottled drinks. But coffee is still the cornerstone of its business and the company’s financial performance. In 2018, Starbucks served over 5 billion cups of coffee to customers around the world, a staggering amount that underscores the role of coffee in its business.
How much coffee does Starbucks sell each day? It’s an impressive figure. According to the company’s annual report, Starbucks served over 4 million cups of coffee per day in 2020. That’s an average of 17 cups of coffee per second. This means the company is selling more than 4.5 cups of coffee per day for every Starbucks store in the world. The company attributes its success to a combination of quality ingredients, customer service and convenience.
The company spends considerable time and energy researching and developing new and innovative ways to better serve its customer. It is committed to sustainability, ethically sourcing coffee beans and has made considerable strides in reducing its environmental footprint. The company also invests in research and development to extend its product range, customer experience and technology.
In addition to its traditional hot and cold coffee drinks, Starbucks also offers other types of coffee such as iced espresso, nitrogen-infused cold brew and cafe-style draft coffee. The company also sells a variety of whole bean coffees, including organic and fair trade options. Checking out the coffee options at Starbucks is a great way to find something new and different.
Experts in the coffee industry attribute much of Starbucks’ success to its customer-focused approach. The company puts customer service at the forefront of its operations by offering free drinks to thank loyal customers, rewards programs and friendly staff. All of these customer-oriented services help contribute to Starbucks selling so many cups of coffee every day.
Coffee Economics
How much does Starbucks spend to produce those 4 million cups of coffee each day? According to the company’s 2010 annual report, the total cost for coffee at Starbucks was about $527 million per year. That would amount to approximately $1.5 million per day, which can be divided into the cost of purchasing the beans and labor costs for making the coffees. At an average cup cost of $2.25, Starbucks can sell that many cups of coffee at a reasonable margin of profits.
Ensuring Starbucks delivers the same consistent quality cup of coffee to customers across the world is the key to their success. The company has developed a carefully designed brewing process including exact temperature, water and proportion of coffee beans to give customers the same cup of coffee they expect every time they visit a Starbucks store.
Location Matters
Location plays an important role in how much coffee Starbucks sells. The highest per store sales highs in 2020 were recorded in densely populated urban areas where Starbucks stores were most accessible to customers. In comparison, stores in suburban areas or remote locations saw significantly lower sales volumes. This suggests that customers are more likely to buy Starbucks coffee if it’s easy to access.
Starbucks’ marketing and advertising campaigns are also instrumental in driving higher sales. By sponsoring and hosting events, the company has been able to reach a wider cohort of potential customers. In addition, it has also been active on social media platforms to stay connected with customers and build a stronger brand following.
Brewing Success
The company’s success at selling coffee can be attributed to its customer focus and its commitment to highlighting the quality of its coffee. Its use of customer loyalty programs, free drinks and events help to strengthen relationships with existing customers. Additionally, its focus on research and development, innovation and sustainability demonstrate the extent to which it is willing to go to provide customers with the best experience.
Starbucks’ cappuccino, espresso, cold brew and nitrogen-infused coffee brews appeal to a wide range of coffee drinkers. The company’s investment in branding, advertising and customer loyalty programs further contribute to its success. These strategies give it an edge over other coffee retailers — and help Starbucks sell more than 4 million cups of coffee every day.
Coffee Quality
A huge factor for the success of Starbucks coffee lies in the quality of its coffee. It relies on ethically sourced coffee beans and environmentally friendly production. Starbucks is committed to ensure that their coffee is of the highest quality, setting strict standards for Arabica coffee beans and setting up quality assurance laboratories all over the world to monitor their coffee production. Furthermore, Starbucks executes a 6-step process when roasting the beans to guarantee a consistent, quality cup of coffee each time.
It is worth noting that much of the coffee produced at Starbucks outlets is consumed that same day. Starbucks has an impressive track record for selling freshly brewed coffee and limiting the number of days it is on the shelf — and that also helps to boost its daily sales.
Technological Advancements
Technological advancements are also playing a role in Starbucks’ success. In 2020, the company launched Starbucks Now – a new app that enables customers to order coffee from their phones and pick it up when it’s ready. This is a completely contactless experience that enhances convenience and customer service.
In addition, the company has launched a new AI powered barista robot called Starbucks Bot that can quickly and efficiently make coffee on demand. This helps to reduce lines in busy stores and adds efficiency to the system. The machine produces precise drinks with consistent quality — and that’s a great way to increase the company’s sales.
Community Engagement
The company also has initiatives to bring communities together. Starbucks has created an entire line of “community blend” coffees that aim to promote a sense of unity and belonging. It partners with organizations such as the Starbucks Foundation to create and fund projects that support communities in need.
The company has also launched the Starbucks College Achievement Plan, which helps Starbucks partners (employees) pay for college tuition. According to the company, this program has reached nearly 10,000 participants.
The company believes that supporting others is key to its success and the success of its customers. This focus on giving back to society is a strong motivator for customers to choose Starbucks coffee.
Impact on the Environment
The company is also committed to reducing its environmental impact, and is investing in initiatives such as sustainable sourcing of coffee beans and compostable paper cups. Starbucks recycles all of its coffee grounds and uses them in gardens and public spaces to help reduce waste. This commitment to sustainability is attractive to customers and has been a major contributor to the company’s success.
Through its continual focus on customer service, product innovation and sustainability, Starbucks has been successful at selling millions of cups of coffee each day. Its commitment to quality and consistency has gained the trust and loyalty of customers worldwide. That, combined with its technological advances, has led to its vast success in selling coffee.
