Starbucks 2011 Annual Report Download - page 10

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Starbucks stores offer a choice of regular and decaffeinated coffee beverages, a broad selection of Italian-style
espresso beverages, cold blended beverages, iced shaken refreshment beverages, a selection of premium teas,
distinctively packaged roasted whole bean coffees, and a variety of Starbucks VIA®Ready Brew soluble coffees.
Starbucks stores also offer a variety of fresh food items, including selections focusing on high-quality ingredients,
nutritional value and great flavor. Food items include pastries, prepared breakfast and lunch sandwiches, oatmeal
and salads, as well as juices and bottled water. In addition to being offered in our US and Canada stores, during
fiscal 2011, we expanded our food warming program into our stores in China, with over 90% of the stores in these
markets providing warm food items as of the end of fiscal 2011. A focused selection of beverage-making equipment
and accessories are also sold in the stores. Each Starbucks store varies its product mix depending upon the size of the
store and its location. To compliment the in-store experience, in company-operated Starbucks stores in the US, we
also provide customers free access to wireless internet.
Retail sales mix by product type for company-operated stores:
Fiscal Year Ended Oct 2, 2011 Oct 3, 2010 Sep 27, 2009
Beverages ........................................... 75% 75% 76%
Food ............................................... 19% 19% 18%
Wholebeanandsolublecoffees .......................... 4% 4% 3%
Coffee-makingequipmentandothermerchandise ............ 2% 2% 3%
Total ............................................... 100% 100% 100%
Starbucks Card
The Starbucks Card program is designed to increase customer loyalty and the frequency of store visits by registered
cardholders. Starbucks customers in the US can earn free beverages through the My Starbucks Rewards®program.
Gold Level members earn a free drink after fifteen purchases at participating Starbucks stores. Members also receive
free select syrups, milk options and refills on tea or brewed coffee during a store visit. Starbucks Cards are accepted at
all company-operated and most licensed stores in North America. The cards are also accepted at a number of
international locations.
Licensed Stores
Product sales to and royalty and license fee revenues from US and International licensed stores accounted for 9% of
total revenues in fiscal 2011. In our licensed store operations, we leverage the expertise of our local partners and
share our operating and store development experience. Licensees provide improved, and at times the only, access to
desirable retail space. Most licensees are prominent retailers with in-depth market knowledge and access. As part of
these arrangements, we receive royalties and license fees and sell coffee, tea and related products for resale in
licensed locations. Employees working in licensed retail locations are required to follow our detailed store operating
procedures and attend training classes similar to those given to employees in company-operated stores. For our
Seattle’s Best Coffee brand, we use various forms of licensing, including traditional franchising.
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