Starbucks 2006 Annual Report Download - page 7

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REVENUE COMPONENTS
The following table shows the Company’s revenue components for the fiscal year ended October 1, 2006:
REVENUES
%of
Total Net
Revenues
%of
Specialty
Revenues
Company-operated retail 85%
Specialty:
Licensing:
Retail stores 7% 45%
Grocery and warehouse club 4% 24%
Branded products ⬍1% 2%
Total licensing 11% 71%
Foodservice and other:
Foodservice 4% 27%
Other initiatives ⬍1% 2%
Total foodservice and other 4% 29%
Total specialty 15% 100%
Total net revenues 100%
COMPANY-OPERATED RETAIL STORES
The Company’s retail goal is to become the leading retailer and brand of coffee in each of its target markets by selling the
finest quality coffee and related products and by providing each customer a unique Starbucks Experience. The Starbucks
Experience, or third place after home and work, is built upon superior customer service as well as clean and well-
maintained Company-operated retail stores that reflect the personalities of the communities in which they operate,
thereby building a high degree of customer loyalty. Starbucks strategy for expanding its retail business is to increase its
market share primarily by opening additional stores in existing markets and to open stores in new markets where the
opportunity exists to become the leading specialty coffee retailer. In support of this strategy, Starbucks opened 1,040 new
Company-operated stores during the fiscal year ended October 1, 2006 (“fiscal 2006”). Starbucks Company-operated
retail stores, including 11 Seattle’s Best Coffee»(“SBC”) stores and 4 Hear Music retail stores, accounted for 85% of total
net revenues during fiscal 2006.
STARBUCKS CORPORATION, FORM 10-K 3