Day 13: Starbucked
Wednesday, May 8, 2013
7:00 am
How big is the coffee market? How big is the entire caffeine market?
Book Report on “Starbucked”: Starbucks is the second biggest restaurant chain in the world!
Video Summary:
Still no withdrawal symptoms.
According to Huffington Post (November 2011) 400 million cups of coffee are consumed every day in U.S.
Coffee represents 75% of our intake of caffeine.
We spend on average $1.38 per cup.
Average cup size is 9 oz.
65% of our coffee is drunk during breakfast time.
So with these statistics you can back into how big the market is:
65% of 400 million = 260 million cups are drunk just during breakfast time every day.
There are only 350 million people in the U.S., with many being children, so the whole country is getting a huge caffeine injection every morning.
$350 million is being spent every morning. Think how much could be saved if people stopped drinking coffee just for one day!
So size of coffee market is 400 million * 365 days * $1.38 = roughly $200 Billion market.
Whole caffeine market is even bigger, probably around $300 Billion.
Starbucks revenue $13B, Energy Drinks revenue $12.5B
Starbucks opens 2,000 stores a year, or 6 new stores per day.
Their goal is to have a total of 40,000 stores.
Second biggest restaurant chain in the world after McDonald’s.
The issue for this series is not so much who owns the industry, but are Americans drinking more coffee and stronger coffee. Probably the answer is yes in terms of Starbucks. Here are some caffeine content comparisons:
Caffeine in 5 Hour Energy Shot 200 mg
Starbucks 16 oz. grande 330 mg
Starbucks 20 oz. venti 415 mg
Rise of coffeehouse culture in past 20 years.
Coffeehouse in the U.S. increased from 585 in 1989 to 24,000 in 2007.