Scribd Logo
Upload

Welcome to Scribd!

  • 54 views

    Starkbucks Calculations

    Uploaded by

    Mukul
    Starbucks conducted a break-even analysis using data from their 3,496 company-operated stores in North America. The analysis found that each store generates on average $739,073 in annual revenue and has 15,170 customer visits per month. To break even, each store needs to convert at least 66 customers to satisfied or highly satisfied levels. Converting customers increases their lifetime revenue and number of visits over an unsatisfied customer.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Starkbucks Calculations

    Uploaded by

    Mukul
    54 views7 pages
    Starbucks conducted a break-even analysis using data from their 3,496 company-operated stores in North America. The analysis found that each store generates on average $739,073 in annual revenue and has 15,170 customer visits per month. To break even, each store needs to convert at least 66 customers to satisfied or highly satisfied levels. Converting customers increases their lifetime revenue and number of visits over an unsatisfied customer.

    Original Description:

    starbuks

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Starbucks conducted a break-even analysis using data from their 3,496 company-operated stores in North America. The analysis found that each store generates on average $739,073 in annual revenue and has 15,170 customer visits per month. To break even, each store needs to convert at least 66 customers to satisfied or highly satisfied levels. Converting customers increases their lifetime revenue and number of visits over an unsatisfied customer.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    54 views7 pages

    Starkbucks Calculations

    Uploaded by

    Mukul
    Starbucks conducted a break-even analysis using data from their 3,496 company-operated stores in North America. The analysis found that each store generates on average $739,073 in annual revenue and has 15,170 customer visits per month. To break even, each store needs to convert at least 66 customers to satisfied or highly satisfied levels. Converting customers increases their lifetime revenue and number of visits over an unsatisfied customer.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 7

    A) Assuming satisfied ticket size and visits to be the overall average

    STARBUCKS : DELIVERING CUSTOMER SERVICE


    Break-even analysis

    Company-operated stores in North American 3496


    Revenue from these stores $ 2,583,800,000
    Revenue per store $ 739,073
    Number of customer visits per month 15170
    Number of customers 3792.45

    Total investment $ 40,000,000


    Investment per store $ 11,441.65
    Break even number of Customer per store to be
    converted 66.37
    Customer behaviour by satisfaction level
    Unsatisfied Satisfied
    Number of Starbucks Visits/month 3.9 4.3
    Average Ticket size/visit $ 3.88 $ 4.06
    Average Customer Life(Years) 1.1 4.4
    Revenue per year $ 181.58 $ 209.50

    Difference in Revenue between Satisfied


    and Highly Satisfied $ 172.39

    Unsatisfied Satisfied
    Lifetime Revenue Before conversion $ 199.74 $ 921.78
    Lifetime Revenue After conversion $ 199.74 $ 1,893.00
    Highly Satisfied
    7.2
    $ 4.42
    8.3
    $ 381.89

    Highly Satisfied
    $ 3,169.67
    $ 3,169.67
    B) Using Figure A

    Customer Visit Frequency From Figure A

    Customer Visits(/month) 1-2 times 3-7 times 8+ times

    %customer base 42% 37% 21%

    Customer behaviour by satisfaction level


    Unsatisfied Satisfied Highly Satisfied
    Number of Starbucks Visits/month 3.9 4.3 7.2
    Average Ticket size/visit $ 3.88 $ 4.06 $ 4.42
    Average Customer Life(Years) 1.1 4.4 8.3

    Average Ticket Size/Visit $ 4.06


    Number of visits 4.741
    STARBUCKS : DELIVERING CUSTOMER SERVICE
    Break-even analysis

    Company-operated stores in North


    American 3496

    Revenue from these stores $ 2,583,800,000


    Revenue per store $ 739,073
    Number of customer visits per
    month 15170
    hly Satisfied Number of customers 3199.7071737368

    Total investment $ 40,000,000


    Investment per store $ 11,441.65
    Break even number of Customer per
    store to be converted 66.37
    c) Taking company operated stores in North America to be 4500 from exhibit 2

    STARBUCKS : DELIVERING CUSTOMER SERVICE


    Break-even analysis

    Company-operated stores in North American 4500


    Revenue from these stores $ 2,583,800,000
    Revenue per store $ 574,178
    Number of customer visits per month 1697077
    Number of customers 424269.29

    Total investment $ 40,000,000


    Investment per store $ 8,888.89

    Break even number of Customer per store to be converted 51.56


    Customer behaviour by satisfaction level
    Unsatisfied Satisfied Highly Satisfied
    Number of Starbucks Visits/month 3.9 4.3 7.2
    Average Ticket size/visit $ 3.88 $ 4.06 $ 4.42
    Average Customer Life(Years) 1.1 4.4 8.3
    Revenue per year $ 181.58 $ 209.50 $ 381.89

    Difference in Revenue between Satisfied


    and Highly Satisfied $ 172.39

    Unsatisfied Satisfied Highly Satisfied


    Lifetime Revenue Before conversion $ 199.74 $ 921.78 $ 3,169.67
    Lifetime Revenue After conversion $ 199.74 $ 1,893.00 $ 3,169.67

    You might also like