Starbucks 2012 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2012 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

5
focusing on high-quality ingredients, nutritional value and great flavor. Food items include pastries, prepared
breakfast and lunch sandwiches, oatmeal and salads. A focused selection of beverage-making equipment and
accessories are also sold in our stores. Each Starbucks store varies its product mix depending upon the size of
the store and its location. To complement the in-store experience, our US company-operated Starbucks stores
also provide customers free access to wireless internet.
Retail sales mix by product type for company-operated stores:
Fiscal Year Ended
Sep 30,
2012
Oct 2,
2011
Oct 3,
2010
Beverages 75% 75% 75%
Food 19% 19% 19%
Packaged and single serve coffees 4% 4% 4%
Coffee-making equipment and other merchandise 2% 2% 2%
Total 100% 100% 100%
Starbucks Card
The Starbucks stored value card program is designed to increase customer loyalty and the frequency of store
visits by cardholders. Starbucks Cards are accepted at company-operated and most licensed stores in North
America. The cards are also accepted at a number of international locations. Customers who register their cards
in the US, Canada, and certain other countries are enrolled in the My Starbucks Rewards™ program and can
receive various benefits depending on the number of Stars earned in a 12-month period.
Licensed Stores
Product sales to and royalty and license fee revenues from our licensed stores accounted for 9% of total revenues
in fiscal 2012. 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.