Why Starbucks Operates Like a Bank | WSJ The Economics Of

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Starbucks, the $124.4 billion global coffee giant, trails only McDonald’s as the largest restaurant chain by market capitalization. Until a few years ago, the massive coffee company held more mobile payment users than Apple Pay. But what actually makes Starbucks excel in a crowded market?

WSJ’s Heather Haddon explains how Starbucks used technology to build its loyal customer base and why mobile orders are shifting the chain’s business priorities.

0:00 Starbucks operates like a bank
0:52 Starbucks’s history and menu
2:59 Starbucks’s technology
4:16 Store models
4:49 Culture and values

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How do the world’s most successful companies generate revenue? In this explainer series, we’ll dive into the surprising stories behind how businesses work–exploring everything from Costco’s “treasure-hunt” model to the economics behind Amazon’s AWS.

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35 COMMENTS

  2. Starbucks Canada closed all the stores by home and blamed it on the pandemic. I say their leases were coming up and they were too cheap to renew them. I would now have walk 25 minutes to find a Starbucks. But yet the App says, "Hey how come you haven't been to Starbucks lately." Here's an idea why, STOP CLOSING THEM!!!

  14. FOOD AT STARBUCKS
    How do Starbucks and Costa coffee train their young staff
    I ordered a cheese and pepper croissant with my hot drink I chose medium drink
    the young man took away my croissant he was going to heat it
    Oh I envisioned something really nice crispy fresh but he gave me some dead gloopy mush
    in a bag very hot.. I just went and got a new one in a packet ate it cold at least it was a croissant.
    I gave him the dead croissant back
    How do you keep standards when you have a lot of staff to train

  16. all i’m seeing is tons of disposable cups, so much waste. why are even the sit-down customers drinking out of disposable cups? starbucks is an environmental disaster.

  18. There are some errors with the opening statement by Heather Haddon. She states that Starbucks will record revenue associated with the gift card sales immediately, and show a liability after they are purchased. This is incorrect and it is not how Starbucks, or any other public company in the US, records their gift card purchases under US GAAP (FASB 606-10-55-46). Starbucks recognizes a liability for all gift card purchases and will only recognize revenue when the card is used, which is opposite of what is presented in the video. So while gift card sales are always positive to their bottom line, they are liabilities considering starbucks owes the customer product at no additional cost. Side note, Starbuck's profit margin per transaction is high, so they do not care that they have to provide the products, although they would rather have customers forget about the balances. Gift cards are essentially just normal sales with a postponed date of transferring goods to the customer and a chance that Starbucks won't ever have to provide the goods.

  19. 🎯 Key Takeaways for quick navigation:

    01:52 ☕ Starbucks ha evolucionado, ofreciendo más de 170,000 variedades de bebidas, desde el espresso hasta el famoso Pumpkin Spice Latte, adaptándose a las cambiantes preferencias de los clientes.
    03:44 💳 Starbucks destaca en transacciones móviles, con el 44% realizadas mediante tarjetas de regalo y la aplicación móvil. Poseen $2.4 mil millones en efectivo cargado por clientes, superando depósitos bancarios.
    04:41 🚗 Durante la pandemia, las opciones de recogida alternativas, como el servicio de autoventa y las órdenes móviles, se volvieron vitales para Starbucks, manteniendo su operatividad y adaptándose a las circunstancias.
    05:09 🤝 Starbucks se esfuerza por mantener una conexión entre baristas y clientes, incluso en drive-thrus y pedidos móviles. La cultura interna se centra en la relación entre la gerencia y los empleados, denominados "partners".
    06:37 🤔 Starbucks enfrenta desafíos laborales, con algunos lugares votando a favor de la sindicalización. La empresa busca mantener una relación directa con los empleados y se opone a la intermediación sindical.

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  23. This content is abundant with pioneering ideas. I read a book with like themes that shifted my worldview. "The Art of Meaningful Relationships in the 21st Century" by Leo Flint

  25. The cashier at StarBucks is no more a "partner" than the security-guard at DisneyWorld is a "team member." Titling employees with these pandering labels does nothing but induce cringing.

  26. They are trying to give Starbucks a good rep in the midts of this boycott so people assume that their boycotts are in vein and stop. But we will not stop until Palestine is free 🇵🇸🇵🇸🇵🇸

  32. Starbucks excels in a crowded market due to its strong branding, focus on customer experience, high-quality products, innovation in digital technology, strategic store locations, commitment to corporate social responsibility, and strong employee culture.

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