Starbucks 2010 Annual Report Download - page 10

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Internationally, 97 and 167 company-operated stores were opened during 2010 and 2009, respectively, and 112
and 64 stores were closed during 2010 and 2009, respectively. As described in more detail in Management’s
Discussion and Analysis in this 10-K, we took a number of actions in fiscal 2008 and 2009 to rationalize the size
of our global company-operated store portfolio. Nearly all of the stores related to these actions have been closed
as of the end of fiscal 2010.
(2) Store data has been adjusted for the fiscal 2010 acquisition of the France and Brazil operations by reclassifying
historical information from licensed stores to company-operated stores.
Starbucks retail stores are typically located in high-traffic, high-visibility locations. Our ability to vary the size and
format of our stores allows us to locate them in or near a variety of settings, including downtown and suburban retail
centers, office buildings, university campuses, and in select rural and off-highway locations. To provide a greater
degree of access and convenience for non-pedestrian customers, we continue to selectively expand development of
drive-thru retail stores.
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, sodas, and bottled water. We continue to expand the food warming program in the US
and Canada, with close to 90 % of the stores in these markets providing warm food items as of the end of fiscal
2010. 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. In company-operated Starbucks
stores in the US, we provide customers free access to wireless internet.
Retail sales mix by product type for company-operated stores:
Fiscal Year Ended Oct 3, 2010 Sep 27, 2009 Sep 28, 2008
Beverages .......................................... 75% 76% 76%
Food .............................................. 19% 18% 17%
Wholebeanandsolublecoffees ......................... 4% 3% 3%
Coffee-makingequipmentandothermerchandise............ 2% 3% 4%
Total .............................................. 100% 100% 100%
Starbucks Card
The Starbucks Card program is designed to increase customer loyalty and the frequency of store visits by
cardholders. Since January 2010, Starbucks customers in the US have earned 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.
Specialty Operations
During fiscal 2010, specialty revenues accounted for 16% of total net revenues. Our specialty operations strive to
develop Starbucks brands outside the company-operated retail store environment through a number of channels.
Starbucks strategy to reach customers where they work, travel, shop and dine includes establishing and maintaining
relationships with prominent third parties that share our values and commitment to quality. These relationships take
various forms, including licensing arrangements, foodservice accounts and other initiatives related to our core
businesses. In certain situations, Starbucks has an equity ownership interest in licensee operations.
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