Starbucks Base Case

By Tom Steinert-Threlkeld  |  Posted 2003-04-17 Print this article Print

Starbucks' wireless networks aren't just for latte lovers. Managers also get to spend more time in stores.

Starbucks Base Case

Headquarters: 2401 Utah Ave. S., Seattle, WA 98134

Phone: (206) 447-1575

Business: Operates 5,886 coffee outlets in approximately 25 countries, with shops found on street corners as well as in airport terminals, supermarkets and office buildings

Chief Information Officer: James Snook, vice president of information technology, enterprise architecture

Financials: Revenue of $3.3 billion in fiscal 2002; net income of $215.1 million, or 6.5% of revenue

Challenge: Find ways to boost the productivity of its stores, through development of new coffee-related products and through technology such as wireless Internet access, Internet ordering and prepaid Starbucks cards

Baseline Goals:

  • Improve productivity of district managers, helping lower store operating expenses from 38% of revenue
  • Boost growth of sales at existing stores, from 6% a year
  • Maintain or increase systemwide sales growth, from 26% a year

Tom was editor-in-chief of Interactive Week, from 1995 to 2000, leading a team that created the Internet industry's first newspaper and won numerous awards for the publication. He also has been an award-winning technology journalist for the Dallas Morning News and Fort Worth Star-Telegram. He is a graduate of the Harvard Business School and the University of Missouri School of Journalism.

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