Question

Starbucks Franchise

What are their costs, fees, and what does that include? Do they have good value or not? Do they benefit the society/community?

Answer 1

Starbucks is actually not a franchise but there may be licensed shop which means the shop is owned by Starbucks.Franchise model is not there in Starbucks.Their corporate headquaters operates every model of starbucks.Starbucks franchise cost for opening one licensed store may be $315,000 .The answer to cost and fees of Starbucks is hypothetical, maybe the numbers that the corporation gives.To open a franchise the person need to have liquid asset of 500,000. A person needs food and beverage experience at manager level which means about 120,000 added to initial cost.Next investment is to open 20 store in a period of 5 years which amounts to a total of 2,100, 000 or 2,600,000.

Even though Starbucks has lower than expected earnings report in 2017,Starbucks has about 23,000 outlets and it is the largest coffee shop chain in the world.Due to global expansion ,its revenue earnings has gone up . Taking into consideration ,Starbucks's financial strength, in some areas and also weaknesses in other areas, Starbucks has the possibility of being under valued.But as stated above , its revenue has increased as a result of expansion across the world.

Starbucks's social responsibility is on community, environment and ethical sourcing.To help community Starbucks opens community stores and joins partners with local nonprofits.Ethical sourcing means starbucks helps the farmers and suppliers who grow their products and also supply their products.They ensure that their product is ethically produced and also purchased.To reduce environmental impact,they made LEED certified stores,which recycle and conserve water and energy.