Do you consider yourself a bonafide Starbuck's coffee fanatic? Do you line up early each morning for your requisite shot of irresistible and unmistakable Starbucks coffee? Do you dream of opening up or pursuing a Starbucks franchise opportunity, leading to the opening of your very own Starbucks coffee shop? If so, you're not alone. The story of the Starbucks Corporation tells of one of the most successful business endeavors in recent memory. Unfortunately, if you dream of someday opening your very own Starbucks coffee shop, you should know that the Starbucks Corporation famously does not franchise its business operations. However, there are other ways to pursue a Starbucks franchise opportunity.
The Starbucks Corporation is based in Seattle, where the first Starbucks stores were opened in Seattle's Pike Place Market in 1971. Howard Schultz, the director of retail and marketing for Starbucks, was inspired by the coffee culture of Southern Europe. In the early 1980s, Schultz made a trip to Milan, Italy that inspired him. He realized that the United States (and all of North America) lacked the robust love for quality coffee that was so common overseas. He decided that North America too, with the proper business model in place, could become a place where a coffee-loving culture could be successfully cultivated.
Schultz convinced the original owners to sell him and a small group of investors to sell them the assets of the coffee shop. Schultz and company launched their new experiment of spreading a love of coffee to the masses by opening a new flagship store in downtown Seattle. They officially changed of the coffee company to Starbucks, and the Seattle chain soon blossomed into twenty local coffee shops. Schultz and company made several wise business moves. They launched a catalog mail order campaign that successfully introduced the Starbucks brand name to a wide segment of consumers. Soon after, the fast growing Starbucks Corporation landed a key affiliation with the well-known chain bookstore Barnes and Noble. In 1992, the Starbucks Corporation introduced an incredibly successful IPO. The Starbucks IPO initiated a period of momentous growth, culminating in the introduction of almost 6,000 new coffee shops in a relatively short period of time. The business numbers speak for themselves: in just four short years, Starbucks revenues increased from $975,389,000 to over $2,648,980,000.
Clearly, the Starbucks business model has attracted much success and attention. While many potential investors would relish the idea pursuing a Starbucks franchise opportunity, the company does not franchise their stores. There does exist another Starbucks franchise opportunity. The Starbucks Corporation does participate in the sales of license agreements to qualified businesses or individuals. The Starbucks license agreement allows a smaller company to sell Starbucks products and conduct its own operations. However, this smaller operation remains solely owned by the Starbucks Corporation. Another way to pursue a Starbucks franchise opportunity is through the route of a joint venture scheme. A joint venture scheme allows a company to align itself with the Starbucks Corporation in a hopefully mutually beneficial business relationship. The joint venture scheme is akin to the relationship forged between Barnes and Noble and Starbucks.