Key Takeaways

• The average Starbucks coffee shop generates revenue of between $650,000 to $750,000 depending on the location.
• The average size of a coffee shop is between 1,000 and 1,750 sq. feet.
• The average wait time for Starbucks drive-thru is 4.44 minutes, one of the slowest in the Quick Service Restaurant (QSR) industry.
• According to a study by Statista, 24% of coffee drinkers surveyed "stated that they had ordered coffee through an app within the past week, down from 27% in 2019."

Introduction

a) Coffee Shop Revenue

• Coffee shops make an average revenue of $215,000 per year.
• The average revenue of Starbucks shops is about $278 per day and $727,000 per annum.
• The average Starbucks coffee shop generates revenue of between $650,000 to $750,000, depending on the location.

ai) Expanse

• The average size of a coffee shop is between 1,000 and 1,750 sq. feet.
• This size offers comfortable seating for about 50 - 70 guests.

aii) Profit Model

• The average profit of Starbucks stores is about $108,000 per store.
• The average Starbucks profit margin is about $15.5% per store.
• Although the gross profit of a small coffee shop is as high as 85%, the average net profit is about 2.5%.

Distribution in Time

• In high traffic areas, the peak times are typically morning, lunch and after work.
• The actual times are 07:00 – 09:00, 12:00 – 14:00, and 17:00 – 18:00.
• These times often have the longest queues.

Starbucks Wait Lines/Queues

• The average wait time for Starbucks drive-thru is 4.44 minutes, one of the slowest in the Quick Service Restaurant (QSR) industry.
• On a typical Starbucks shop, it takes an average of 3 minutes between the time a customer gets in line to the time they get their order.
• The average wait time in Starbucks declined by about 30 seconds in 2021 compared to five years ago when the company started measuring wait times.
• A study by Channels 2 in Houston found that the mean wait times at Starbucks locations in the city was 2 minutes, 50 seconds, while that of Dunkin' Donuts was 2 minutes, 56 seconds.

Starbucks Coffee Shop Capacity

• Older Starbucks shop size used to be about 1,700 square feet.
• Newer free-standing Starbucks "locations range from 1,500 - 2,000 square feet situated on 0.50 - 1.00 acres of land."
• The average Starbucks shop serves about 500 customers daily.

Mean Wait Times vs. Time of Day

• Data on the distribution of mean wait time vs. time of day is unavailable.
• However, peak times are typically in the morning, lunch, and after work.
• Starbucks reported in 2020 that its peak time has shifted to after 9:00 a.m as more people now work remotely.
• The company said another peak time around 2:00 p.m.

Coffee Shops with Apps and App Ordering Statistics

• According to a study by Statista, 24% of coffee drinkers surveyed "stated that they had ordered coffee through an app within the past week, down from 27% in 2019."
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• Prior to the COVID-19 pandemic, Starbucks’ drive-thru combined with mobile order-and-pay accounted for 60% of the total order volume. During the pandemic, it accounted for as much as 90% of total sales in the third quarter of 2020.
• In the fourth quarter of 2020, 75% of Starbucks' U.S. sales volume was via drive-thru and mobile orders.
• About 35% of Starbucks shops offered pickup orders that are typically done through the app in 2020. The company announced at the end of 2020 that it expects the number to rise to 45% of all its stores going forward.

Number of Employees Per Shift

• Small coffee shops typically need 1-3 employees per shift, depending on the space.
• Starbucks typically staff 5-8 employees per shift from a pool of 15-25 employees, depending on the size of the store and the traffic.

Average Barista Cost

• The average wage of a Barista in the US is $12.89 per hour.
• The average pay salary per month is about $2,135.
• The average base salary is about $30,151.

Research Strategy