Could you buy a Starbucks Franchise?

Glen White
- Franchising - Jan 17, 2017

Fancy buying a Starbucks Franchise - Maybe, Maybe Not....

For some businesses it's all about franchising - McDonald's, Burger King, Subway, KFC and many, many more....

But believe it or not, Starbucks has refused to go down the franchise route on its standalone stores to date, even though they have over 24,000 locations worldwide.

So why, well if you just listen to current Starbucks CEO, Howard Schultz then you would clearly hear his vision against the franchise route - "So much of what we've succeeded in is based on the values and culture of the company, and I never believed we could do that in the franchise system where the people weren't working for the company."

There are a few loopholes in Starbucks' anti-franchise stance.

Beginning in 1991, Starbucks began allowing Host Marriott to open and operate Starbucks locations in airports. This eventually led to another loophole: licensed stores in locations such as hospitals, colleges, and grocery stores. Today, roughly 5,100 of Starbucks' 12,800 locations in the US are licensed.

As Starbucks has expanded internationally, the coffee giant has worked with other companies and individuals that have become licensed partners in the business.

Only about one in five Starbucks in Europe, the Middle East, and Africa are company-run. In Asia, Starbucks' current top region of growth, a little less than half are company-operated.

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