Welcome back to another episode of What's Your Game Plan. This segment is called profit zone, where I reveal where exactly the money is coming from. These videos are aimed to help you understand how big businesses work and teach you how to generate additional revenue, just like they do.
Today we’ll talk about Starbucks. Starbucks is one of the most recognized and respected brands in the world. Last year alone, they generated close to $25 billion dollars in revenue. All of that money doesn’t come just from selling coffee. Let’s dive right in and see just how Starbucks makes their money.
1. Beverage Sales
Starbucks gets paid when you buy their drinks in store or in retail outlets.
2. Food Sales
Starbucks gets paid when you buy food in any of their stores.
3. Packaged Coffees and Tea Sales
Starbucks gets paid when you buy their packaged coffee in their stores or at retail partners.
4. Product Sales
Starbucks gets paid when you buy their branded serve ware, coffee mugs and coffee making equipment.
5. Investment Revenue
Starbucks owns and operates Teavana, Tazo, Ethos Water and a few other companies. They get paid every time these businesses make money.
Starbucks gets paid when they let other businesses use the rights to their name, patents or copyright materials. 20% of their revenue actually comes from licensing stores.
So, it looks like Starbucks has done a great job managing growth, which can be challenging for any company. As they move forward, they will continue to expand into new channels and markets. Starbucks does a whole lot of selling. Do you think this is something you could setup in your business?
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Cheers to your success,
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