Starbucks. Franchising

15

The first Starbucks location outside North America opened in Tokyo, Japan, in 1996. Starbucks entered the U.K. market in 1998 with the $83 million acquisition of the then 60-outlet, UK-based Seattle Coffee Company, re-branding all the stores as Starbucks.

In April 2003, Starbucks completed the purchase of Seattle's Best Coffee and Torrefazione Italia from AFC Enterprises, bringing the total number of Starbucks-operated locations worldwide to more than 6,400. On September 14, 2006, rival Diedrich Coffee announced that it would sell most of its company-owned retail stores to Starbucks. This sale includes the company-owned locations of the Oregon-based Coffee People chain. Starbucks converted the Diedrich Coffee and Coffee People locations to Starbucks, although the Portland airport Coffee People locations were excluded from the sale.

Many bookstores have Starbucks outlets within them, including Barnes & Noble in the United States, Chapters-Indigo in Canada, Livraria Saraiva and Fnac in Brazil and B2S in Thailand.

The Starbucks location in the former imperial palace in Beijing closed in July 2007. The coffee shop had been a source of ongoing controversy since its opening in 2000 with protesters objecting that the presence of the American chain in this location "was trampling on Chinese culture. Also in 2007, Starbucks cancelled plans to expand into India, but opened its first store in Russia, ten years after first registering a trademark there. In 2008, Starbucks continued its expansion, settling in Argentina, Bulgaria, the Czech Republic and Portugal. In Buenos Aires, the biggest Starbucks store in Latin America was opened. In April 2009, Starbucks entered Poland. New stores will be opened in Algeria. Starbucks has also opened its doors on 5 August 2009, in Utrecht, Netherlands. On October 21, 2009 it was announced that Starbucks will finally establish in Sweden, starting with a location at Arlanda airport outside Stockholm. On June 16, 2010 Starbucks opened its first store in Budapest, Hungary.

In May 2010, Southern Sun Hotels South Africa announced that they had signed an agreement with Starbucks that would enable them to brew Starbucks coffees in select Southern Sun and Tsonga Sun hotels in South Africa. The agreement was partially reached in order for Starbucks coffees to be served in the country in time for the commencement of the 2010 FIFA World Cup hosted by South Africa.       16

Starbucks is planning to open its third African location, after Egypt and South Africa, in Algeria. A partnership with Algerian food company Cevital will see Starbucks open its first Algerian store in Algiers. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                        17

Corporate governance 

Orin C. Smith was President and CEO of Starbucks from 2001 to 2005.

Starbucks' chairman, Howard Schultz, has talked about making sure growth does not dilute the company's culture and the common goal of the company's leadership to act like a small company.

In January 2008, Chairman Howard Schultz resumed his roles as President and CEO after an eight year hiatus, replacing Jim Donald, who took the posts in 2005 but was asked to step down after sales slowed in 2007. Schultz aims to restore what he calls the "distinctive Starbucks experience" in the face of rapid expansion. Analysts believe that Schultz must determine how to contend with higher materials prices and enhanced competition from lower-price fast food chains, including McDonald's and Dunkin' Donuts. Starbucks announced it will discontinue its warm breakfast sandwich products, originally intended to launch nationwide in 2008, in order to refocus the brand on coffee, but the sandwiches were reformulated to deal with complaints and the product line stayed. On February 23, 2008, Starbucks closed its stores from 5:30-9:00 p.m. local time to train its baristas. 
 
 
 
 
 
 
 
 
 

18

Recent changes 

In March 2008, Schultz made several announcements to Starbucks shareholders. Schultz introduced Starbucks' "state of the art espresso system", the Thermoplan AG manufactured Mastrena, which replaced their previous superauto, the Thermoplan Verismo 801 (known internationally as the Thermoplan Black & White). Starbucks also announced that the company hopes to enter the energy drink market. Pre-ground beans will no longer be used, so that the grinding of whole bean coffee will "bring aroma, romance and theater" to American stores. The company also announced the acquisition of The Coffee Equipment Company, the manufacturer of the Clover Brewing System. They are currently test marketing this "fresh-pressed" coffee system at six Starbucks locations; three in Seattle, and three in Boston.

Starbucks stopped using milk originating from rBGH-treated cows in 2007.

In early 2008, Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers. Other users comment and vote on suggestions. Journalist Jack Schofield noted that "My Starbucks seems to be all sweetness and light at the moment, which I don't think is possible without quite a lot of censorship". The website is powered by the Salesforce software.

In May 2008, a loyalty program was introduced for registered users of the Starbucks Card (previously simply a gift card) offering perks such as free Wi-Fi Internet access, no charge for soy milk & flavored syrups, and free refills on brewed drip coffee. Free Wi-Fi Internet access varies in different regions. US & Canadian card holders can access 2 hours of Internet access through AT&T in the United States and through Bell Canada within Canada. In Germany customers can get 1 hour of free Wi-Fi with a voucher card, and in Switzerland and Austria customers can get 30 minutes the same way (through T-Mobile).In June 2009, the company announced that it will be overhauling its menu and selling salads and baked goods without high-fructose corn syrup or artificial ingredients. The move is expected to attract health- and cost-conscious consumers and will not affect prices. At least three stores in Seattle were "debranded" to remove the logo and brand name, and remodel the stores as local                                                               19

coffee houses "inspired by Starbucks."The first, 15th Avenue Coffee and Tea, opened in July on Capitol Hill after Starbucks employees visited local coffee houses to look around. It serves wine and beer, and plans to host live music and poetry readings. The practice has been criticized as "local-washing", similar to greenwashing.

In September 2009, Starbucks in the UK rolled out free Wi-Fi at most of its outlets, working with its Wi-Fi partner BT Openzone. Customers with a Starbucks Card will be able to log-on to the Wi-Fi in-store for free with their card details, thereby bringing the benefits of the loyalty program in-line with the United States.

Beginning in July 2010, Starbucks plans to offer free Wi-Fi in all of its US stores via AT&T and information through a partnership with Yahoo!. This is an effort to be more competitive against local chains, which have long offered free Wi-Fi, and against McDonald's, which begin offering free wireless internet access in 2010.

On June 30, 2010, Starbucks announced it would begin to offer unlimited and free Internet access via Wi-Fi to customers in all company-owned locations across Canada starting on July 1, 2010.

A store in Seattle known for its use of the corporation's new ideas will reopen in the fall of 2010 with modifications to the interior decorating and the addition of wine from Pacific Northwest vineyards. The espresso machines will be in the middle of the store to create what Starbucks calls a "coffee theater". 
 
 
 
 
 
 
 
 

20

Activity indicators 

Number of the personnel in 2009 —  176 thousand persons. The network revenue for the fiscal year which has ended in 2007, has constituted $9,41 billion, net profit — $672,64 million 
 

Starbucks in Russia

Starbucks has repeatedly expressed a desire to enter the booming Russian market. But in 2004, Starbucks trademark registered by the Russian company Starbucks, which has no relation to the American corporation. Later, the Chamber of Patent Disputes deprived LLC Starbucks rights to the brand on the complaint of American network.

In September 2007, opened its first coffee shop chain in Russia - in the shopping center "Mega - Khimki. After this was discovered a number of stores in Moscow: Stary Arbat Street, an office complex at Tower Wharf, Sheremetyevo-2, etc. In October 2010, the capital of Russia operated 37 stores Starbucks. It is planned that in St. Petersburg first coffeehouse network starting at TRC "Summer", which is based on Pulkovo Highway. 
 
 
 

21

The conclusion 

At the moment a franchising is extended worldwide.

Also is in great demand.

It is used by such companies: Subway, MiniMarkets, Servo-Pro, Jani-King, Dunkin Donuts, H&R Block, Supercuts, Hampton Inns & Suites, 7-Eleven Inc., McDonald's. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

22

Appendix 

24

Literature 

http://ru.wikipedia.org/wiki/Starbucks

http://wikipedia.org/wiki/Starbucks 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

25