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SCENARIO OF STARBUCKS IN UNITED STATES

Starbucks has grown from a small coffee bean business in Seattle to a worldwide
coffee powerhouse. In late August 2021, there were 14,944 Starbucks outlets in the United
States. Given US present population, this equal to one Starbucks for every 22,313
individuals in the United States. However, depending on which part of America, Starbucks
unit numbers and per capita coverage can both fluctuate significantly. According to Vine Pair
statistics, California seems to have the most Starbucks locations. It is now having 2,959
outlets, while Texas has the second greatest total of 1,215 outlets, which does not seem to
come near. With 786 Starbucks stores, Florida comes in third rank, followed by Washington,
where the company was started Last but not least, New York ranked sixth with 643
Starbucks locations in United States. This data shown proves that Starbucks have been
successfully survive and sustain in United States up until year 2021.

Since about January 2, 2022, Starbucks has 34,317 open outlets worldwide including
little under 17,000 in the United States. Starbucks has long struggled to increase the number
of consumers who visit its cafés in the United States. While revenues have increased, the
number of customer visits has stagnated in the beginning. But now, it can be said that
people are obsessed with this coffee house. It has been so successful because it has been
able to deliver an experience that has transformed the way the world views coffee shops and
how many of us consume coffee outside of our homes. Starbucks has created a space in
between home and work where people can chill, have a cup of coffee, and absorb in the
appealing atmosphere.

However, great expansion has not come without challenges. Back to the year 2020,
where the Covid-19 outbreaks happen, Starbucks is one of the many businesses that faced
downsides. Starbucks expects to lose income in the third quarter of its fiscal year, with the
covid-19 outbreak costing the company up to $3.2 billion in revenue. The company were to
operates with modified hours of its store operation since May 2020. In the same month, the
same-store sales in the United States fell by 43%. After a while, majority of the closed sites
in the United States have reopened, with the most of them in the New York City region.
However, Starbucks was compelled to change its cafes to drive-thru or pick-up only after the
COVID-19 pandemic essentially stopped eating out in most of the United States for weeks.

Year 2021 has become the turning point for Starbucks in United States. Now that the
pandemic has been resolved, the company normal routines has begun. Same-store sales in
the United States increased by 12% as customers spent more per order and revisited more
regularly and its active loyalty programme participation increased by 17% to 26.7 million
customers. But there are a few pandemic patterns remain unchanged such as drive thru and
mobile ordering. Also, Starbucks released its profits one day after raising wages for its US
employees. Workers at the company's U.S. stores will earn at least $15 per hour, with the
possibility of earning up to $23. Employees who have been with Starbucks for at least two
years are also getting increases of wages. Starbucks in United States continue to grow
massively in the post-pandemic era with more stores were set up.
CONCLUSION

In conclusion, Starbuck is one of the most successful and well-known companies in the
worldwide and it keeps growing years by years. Not only because it is a coffee house
business, but it delivered an experience that transformed the way many people thought
about coffee shops and how we consume coffee outside of our homes. Starbucks is a brand
that customizes its worldwide product to meet the local and cultural demands of many
countries and people, and it will be able to establish a strong hold on the coffee market as a
whole by expanding into more places and nations. It does not compete with other coffee
companies because it has their own specialty in attracting people. In short, Starbucks has a
strong international business strategy, but it must continue to develop its objectives.
Starbucks will never stop expanding as a company; therefore it is important to maintain its
objectives in mind and plans precisely in order to tackle any obstacles that may arise. All in
all, Starbucks has successfully navigated organizational and management challenges,
establishing itself as a powerful example for international business. It proves that choosing
the right strategy is crucial for gaining a long-term competitive edge and succeeding in
international business.
REFERENCE

CNBC. (2019, January 7). How starbucks went from One Coffee Bean store to an $80B
business. CNBC. Retrieved May 18, 2022, from
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Dee-Ann, D. (2021, October 28). The Seattle Times.

Lucas, A. (2020, June 10). Starbucks says it lost $3 billion in revenue in latest quarter due to
coronavirus pandemic. CNBC. Retrieved May 18, 2022, from
https://www.cnbc.com/2020/06/10/starbucks-says-it-lost-3-billion-in-revenue-in-latest-
quarter-due-to-coronavirus-pandemic.html

Lucas, A. (2022, May 4). Starbucks suspends its outlook as Covid Lockdowns Hammer sales
in China. CNBC. Retrieved May 18, 2022, from
https://www.cnbc.com/2022/05/03/starbucks-sbux-q2-2022-earnings.html

Margalit, L. (2020, May 5). Why is Starbucks so successful despite its mediocre coffee?
CMSWire.com. Retrieved May 18, 2022, from https://www.cmswire.com/customer-
experience/why-is-starbucks-so-successful-despite-its-mediocre-coffee/

Mary, M. (2022, February 5). Insider.

Roby, L. R. (n.d.). An analysis of Starbucks as a company and an international business


(thesis).

This state is the most obsessed with Starbucks, Data reveals. Eat This Not That. (2021,
September 10). Retrieved May 18, 2022, from https://www.eatthis.com/news-states-
with-most-fewest-starbucks-locations/

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