BUS685 (Final) PDF

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STARBUCKS
COFFEE LOUNGE
More than Coffee – A Lifestyle Experience
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GROUP MEMBERS

NAME ID

MD. TOWFIQUL ISLAM MOZUMDER 2225491660

SHEIKH SAYMA SIDDIKA 2215046060

S.M. SHAHRIAR ANIK 2235341660


INTRODUCTION
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Starbucks, established in Bangladesh and operating for the last couple of years, has grown into a dominant coffee
industry player, attributing its success to exceptional customer experiences and modular business systems. With a
desire for a global footprint, the company is venturing into franchising in the USA, Canada, and Switzerland.

Recognizing the complexity of international expansion, Starbucks is meticulously considering cultural nuances,
legal and political systems, as well as customer preferences. The selection of local franchisees is crucial to avoid
global brand equity degradation. Starbucks aims to streamline the process by articulating budgets, operations, and
back/front office services, offering a handbook for potential business partners.

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ORGANOGRAM
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Value Addition Process
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Value Addition Process
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Value Addition Process
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Value Addition Process
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Franchise Terms & Conditions
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Initial Fees:

Franchise Fee: $[100,000 - 150,000]


• Covers brand usage, training, and operational support.
•Royalty Fee: [8-10%] of monthly gross revenue
• Ensures ongoing support and brand development.
•Marketing Fund: [2-3%] of monthly gross revenue
• Contributes to national and international marketing campaigns.

Term & Renewal:

•Initial Term: 10 years, renewable with good performance.


•Renewal Fee: Negotiable percentage of the initial franchise fee.

Territory & Exclusivity:

•Exclusive Territory: Defined market area for franchisee operation.


•Site Approval: Franchisor approval required for location selection.

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Franchise Terms & Conditions
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Operations & Standards:

•Compulsory Branding: Strict adherence to Starbucks branding, design, and


equipment.
•Operational Manuals: Strict adherence to operational manuals and training
Upfront Payment Estimation:
protocols.
•Inspections: Regular inspections and performance reviews.
•Total initial investment: $[600,000 - 1,200,000], including franchise
fees, development costs, and working capital.
Termination: •Real estate costs: Variable depending on location and size of the
facility.
•Breach of agreement or poor performance is grounds for termination by
either party. Defined dispute resolution process.
Annual Commission Estimation:
Other Key Points:
•Annual revenue potential for a well-run Starbucks Coffee Lounge:
•Comprehensive training and operational support provided by the $[2-4 million].
franchisor. •Based on this, annual commission for the franchisor would be:
•Franchisee responsible for local and international marketing and $[160,000 - 400,000].
promotions.
•Franchisor may offer purchasing discounts for equipment and supplies.
•Minimum investment expected for development (excluding real estate):
$[500,000 - 1,000,000].

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International Marketing
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Year Country & City Justification

• USA: New York, Canada: Toronto, • Big cities with lots of people who love coffee.
• 2024
Switzerland: Zurich • New York and Toronto are busy places with diverse people, and Zurich is a rich city in Europe.

• USA: Los Angeles, • Exciting cities where people enjoy life and love coffee.
• 2025 • Canada: Vancouver, • Los Angeles and Vancouver are cool places with entertainment,
• Switzerland: Geneva • And Geneva is in Europe with a great coffee culture.

• USA: Chicago, Canada: Montreal, • Important cities with lots of culture and people who like good coffee.
• 2026
Switzerland: Basel • Chicago and Montreal have a lot of art and life, and Basel is a key city in Switzerland.

• Growing cities with more and more people who want good coffee.
• USA: Dallas, Canada: Calgary,
• 2027 • Dallas and Calgary are getting busier, and Bern is the important city in Switzerland.
Switzerland: Bern

• USA: Atlanta, Canada: Ottawa, • Going to cities that are getting bigger and where people are starting to like better coffee.
• 2028
Switzerland: Lausanne • Atlanta and Ottawa have many people, and Lausanne is a nice city in Switzerland.

• USA: Boston, Canada: Quebec City, • Going to cities with history that people like.
• 2029
Switzerland: Lucerne • Boston and Quebec City are old and famous, and Lucerne is a beautiful place in Switzerland.

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Conclusion

The Starbucks DNA: Unveiling the meticulous Investing in Your Success: Understanding the
operations, from initial groundwork to robust initial investment required and embarking on a
supply chains, and the modular system that five-year expansion plan tailored to major cities
fuels our success. and towns worldwide.

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Now, the opportunity awaits.
Partner with Starbucks, and:
Leverage Our Brand Power: Tap
into the unparalleled
recognition and loyalty of the
Starbucks name, a global icon
synonymous with premium
coffee experiences.

Join a Supportive Embrace Proven


Network: Gain access Systems: Implement
to comprehensive our meticulously honed
operating procedures
training, ongoing and benefit from our
support, and the modularity, ensuring
expertise of our efficiency and
franchise family. consistent quality.

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WELCOME!!!

Call to Action:
• Express your interest in
becoming a Starbucks Embark on a journey with
franchisee. Starbucks, become a steward
of our coffee legacy, and build
• Schedule a follow-up meeting to your own success story within
discuss next steps. our global network. We invite
you to join us in brewing a
• Download our comprehensive brighter future, one steaming
cup at a time.
franchisee handbook for further
details.

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THANK YOU!

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