Case Type: Increase sales
Case Style: Candidate Led
Industry: Food & Beverages
Case Type: Increase sales
Industry: Food & Beverages
Case by Evalueserve
Starbucks Corporation is an American multi-national chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As of September 2020, Starbucks had ~ 10,000 stores in the US.
Starbucks locations serve hot and cold drinks like whole bean coffee, espresso, cafe latte, Frappuccino and snacks. Many stores sell pre-packaged food items, pastries, hot and cold sandwiches, and drinkware including mugs and tumblers. There are also several select “Starbucks Evenings” locations which offer beer, wine, and appetizers.
Executives at Starbucks are looking forward for a strategic plan to achieve a sales growth of 30% annually for the next five years. Investors have been telling Starbucks to open more coffee shops, but the coffee retailer feels it has exhausted all the areas where it could grow. What should Starbucks do?
Additional information (To be provided only on request)
Starbucks is looking for increasing sales opportunities only in the US. (Do not discuss cross-border opportunities)
Coffee based beverages industry is growing at a steady rate of 20% and so was Starbucks’ last year growth percentage.
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Candidate is expected to solve this case by answering following questionnaires, led by the interviewer or the case partner. It is a candidate led case and below questions are given only to provide a direction to the candidate’s analysis wherever necessary. A good candidate is expected to crack this case end to end on his own using appropriate assumptions.