In today’s world, people fuel on caffeine to get them through the day. Coffee is the best source of natural caffeine that also satisfies the taste buds. The word coffee has become synonymous with Starbucks. Rarely, these two aren’t mentioned in the same sentence. Today’s millennial culture has coffee flowing through their veins, and it’s always Starbucks Coffee! Let’s know Who Owns Starbucks?
What is Starbucks?
Starbucks is the largest coffeehouse in the world, operating in over 83 countries and spread over 33,300 locations as of 2021. Starbucks is the prime leader of the coffee culture throughout the world. With over $26 billion in revenue and $3.60 billion in net income, Starbucks is the largest coffeehouse chain in the world.
With so many locations and billions in revenue and income, one may think “Who Owns Starbucks?” We have covered just that in this article!
Owner of Starbucks
This thought must have struck your mind at least once. The right answer is, there is no individual owner of Starbucks. Though Kevin Johnson is the current CEO (Chief Executive Officer) and President of Starbucks, he does not own the company.
The company is run largely by institutional shareholders which own the majority of the company, along with the voting rights. We have mentioned the investors which own most stock of Starbucks below.
- Vanguard Inc.
- BlackRock Inc.
- State Street Corp.
- Magellan Asset Management
Vanguard Inc.
Vanguard control over 91.5 million shares of Starbucks, which amounts to 7.7% of the company, it may not seem much but if it’s converted then it results in over $6 billion, a truly astonishing amount.
Vanguard Inc. is one of the largest investment and management companies in the world. They have close to $7 trillion worth of Assets Under Management (AUM), with exchange trading funds and 430 low-cost funds as well.
BlackRock Inc.
BlackRock currency holds over 86 million shares of Starbucks, which is close to 7.2% of the company. The total market value of these shares is about $5.5 billion.
BlackRock has approximately $6.6 trillion Assets Under Management. The firm provides an array of funds and ETFs to invest in. Starbucks amounts to a meager 0.35% of BlackRock’s total holdings.
State Street Corp.
State Street Corp owns approximately 53.4 million shares of Starbucks, which comprise 4.9% of the total outstanding shares, with a value of $3.9 billion. State Street Corp. is one of the world leaders in the asset and management industry, with over $3.4 trillion Assets Under Management. The firm offers various financial services to investors all over the globe. 0.34% of State Street Corp’s holdings are in Starbucks.
Magellan Asset Management
Magellan Asset Management holds 34 million shares of Starbucks, which make up over 3% of the total outstanding shares. The market value of the shares is just shy of $3 billion.
Magellan Asset Management is an Australian investment and asset company, providing an array of financial services, which include ETFs, financial planning, asset management, equity management, and much more. Starbucks is one of the biggest shares owned by Magellan.
Important People at Starbucks
Creating a huge brand like Starbucks is no easy feat! Nor can something like this be achieved in a week or two. Years of hard work along with literal blood, sweat, and tears go into creating a legacy, which would not be possible without the following people.
Gordon Bowker, Jerry Baldwin, and Zev Seigl
The trio which established the original Starbucks in Seattle Washington is often overlooked. But without their grit and determination, we wouldn’t have the iconic green logo and the iconic taste of rich coffee. The trio first came in contact as students at the University of San Francisco. They had one goal, one vision in mind, to establish a successful coffee house for the people.
Howard Schulz
Schulz is responsible for the rapid growth and transformation of Starbucks from something more exclusive and small to a full-blown global coffee chain. His reign saw the commercialization and rapid expansion of Starbucks. He was credited for the 70% growth in stock price, just a year after its IPO. He is the ex-CEO and ex-chairman of Starbucks. He owns over 40 million shares of Starbucks both directly and indirectly through trusts, this amounts to 2.9% of the company’s total outstanding shares. This astonishing number translates to over $2.6 billion. As of 2021, Schulz is the biggest individual shareholder of Starbucks.
History of Starbucks
We looked at the important people at Starbucks, but now let’s look at the history of Starbucks, where and when did it all begin?
Establishing Starbucks
The first-ever Starbucks sold only coffee beans and equipment, they opened in Seattle in the hot summer of 1971. The founders were three friends and classmates Gordon Bowker, Jerry Baldwin, and Zev Seigl. They were largely inspired by Alfred Peet who ran the iconic Peet’s Coffee House in California. The initial name was thought out to be “Starbo” but then they remembered “Starbuck” from the Moby Dick novel and stuck with it. Starbucks used to purchase coffee beans directly from Peet’s Coffee House and other growers in the neighboring area. After a semi-successful run, they moved to another place in Seattle.
Ownership Changes and Rapid Expansion
In 1984, Starbuck’s lead by its original owners acquired Peet’s Coffee. In less than two years, Starbucks was successful in opening six stores in Seattle, after they had just commenced selling espresso coffee. In 1987, Former manager, Howard Schulz was able to acquire Starbucks after the initial owners decided to sell it off. Under Schulz’s reign, Starbucks expanded out of Seattle, with over 46 locations all across the Northwest and Midwest, in large cities like Chicago, Vancouver, British Columbia, and many more.
Starbucks Going Public
In mid-1992, Starbucks shook the world by announcing its IPO (Initial Public Offering). In layman’s terms, a company goes public by issuing shares that people can trade in the market, this process is called the IPO. By the time Starbucks had its IPO, it had established over 140 outlets reaping over $73 million annually. Which was up 700% from $1 million annual revenue just 5 years ago. The market value had risen to $271 million. $25 million was raised during the IPO, assisting them in double their stores around the country. By 1993, Starbucks saw a 70% increase in its share price.
In 1994, Starbucks acquired The Coffee Connection which had patented the word “Frappucino”, allowing them to market and sell it. As of 2020, Frappuccino sales have reached annual sales of over $3,5 billion. Starbucks spent over $72 million to acquire Toreffazone Italia and Seattle’s Best Coffee in the summer of 2003. The acquisition gained them over 150 stores and entry into the wholesale food market. It was also one of the first companies to have their websites, where people could drop feedback and contact customer support.
Job Positions at Starbucks
As of 2020, Starbucks has been responsible for employing over 350,000 people. This includes all the roles and titles ranging from Barista to Regional Manager. Below, we have compiled a list of in-demand jobs at Starbucks along with the average salary. Note that the salaries are just estimates and may be subject to change in the future.
Barista
Baristas at Starbucks are provided with various duties on a daily level while acting with trustworthiness and honesty. They must be inviting along with being friendly with each customer. Baristas are the foundation of every successful coffee house. Their responsibilities include being welcoming to the customers, looking after the food quality, handling the cash register, and much more. On average, the Baristas at Starbucks are paid around $11.73 an hour which amounts to around $27,000 annually.
Store Manager
The Store Manager is an advanced position. There are various duties that the store managers are handed. The extensive list includes maintaining financial reports on a daily and weekly basis, resolving grievances and issues of the partners, have proper inventory management skills that ensure no wastage of raw materials, provide and ask for feedback from the other employees, hiring and termination of employees, training of new employees. On average, the Store Managers at Starbucks get paid around $22 per hour, which amounts to $58,000 on an annual basis.
Shift Supervisor
The shift supervisors work closely with the store manager at Starbucks. The responsibilities of a shift supervisor may include delegating responsibility, assisting the baristas during hectic work hours, running the store as well. The shift supervisors also have to supervise the employees and ensure proper cash management. At Starbucks, the Shift Supervisors get paid $14 an hour which results in $30,000 annually including bonuses and incentives.
District Manager
The District Manager at Starbucks is in charge of all the Starbucks Cafes that are in operation in their cities or areas. The need to guarantee the smooth running of their tasks daily, meeting all the requirements and expectations. They have to comply with the advertising procedures and prioritize the annual sales target. The District Managers are also responsible for the termination and hiring of the employees. The average annual pay of the District Manager can range anywhere from $70,000 to $90,000, including incentives and bonuses.
Conclusion
Starbucks has cemented its name as the world leader in the Coffee industry. They have managed to create a strong legacy, built by its relentless team, with the same intention of creating something larger than life, which Starbucks is. They have created their niche, a sub-culture that thrives on coffee.
The brand has built a reputation over the years, starting as a supplier for coffee beans and other raw ingredients to being an established Coffee House in over 80 countries all across the globe. Starbucks has managed to do something that was deemed impossible by most brands, offering something likable and consumed by people of all ages. Two squares that not all brands can tick together.
