Starbucks Corp. purchases and roasts high-quality whole bean coffees and sells them along with fresh brewed, Italian style espressobeverages, a variety of pastries and confections, and coffeerelated accessories and equipment – primarily through its company-operated retail stores. Starbucks does not franchise, but enters into licensingarrangements with companies that provide access to real estate which would otherwise be unavailable such as airport locations, national grocery chains, major food services corporations, college anduniversity campuses and hospitals. By September 2003, there were over 6,200 Starbuck locations worldwide – about 5,200 in the United States (72.7% company-owned and 27.3% licensed) and 2,000 international(37.9% company-owned and 62.1% licensed). Appendix A presents Starbucks mission statement, and the company indicates that its objective is to establish Starbucks as the most recognized and respectedbrand in the world. To achieve this goal, the Company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities toleverage the Starbucks brand through the introduction of new products and the development of new distribution channels. In support of this strategy, Starbucks opened the following stores during itsfiscal 2003 year:
Sep 2002 United States: Company-owned stores Licensed stores Total International: Company-owned stores Licensed stores Total Total Stores 3,209 1,033 4,242 671 973 1,644 5,886 Sep 20033,779 1,422 5,201 767 1,257 2,024 7,225 % Increase 17.76% 37.66% 22.61% 14.31% 29.19% 23.11% 22.75%
Starbucks reports the following in its 2003 Annual Report:
Starbucks retail stores aretypically located in high-traffic, high-visibility locations. Because the Company can vary the size and format, its stores are located in a variety of settings, including downtown and suburban retail...