Starbucks runs a retail-led model built on premium beverages, food, and a consistent in-store experience. In fiscal 2025, beverages made up 73% of sales in company-operated stores, food accounted for 23%.
The model combines scale with brand control through a dual store structure. At fiscal year-end 2025, Starbucks operated 40,990 stores, split between 21,514 company-operated and 19,476 licensed.
Key pillars of the business:
- Company-operated and licensed stores
Company-operated stores drive most revenue, while licensed stores extend reach with partner capital. In fiscal 2025, company-operated stores generated 83% of total net revenues, licensed stores generated 12%.
- Digital and loyalty as a traffic engine
In the U.S., Starbucks reported 34.2 million 90-day active Starbucks Rewards members in Q4 FY2025. Mobile order transactions were 31% of total transactions in U.S. company-operated stores.
- Channel Development beyond cafés
Starbucks sells packaged coffee and ready-to-drink products outside its stores and earns royalties through the Global Coffee Alliance with Nestlé. It also runs ready-to-drink collaborations with partners including PepsiCo and Nestlé.
Market position
Starbucks remains one of the largest specialty coffee retailers globally, operating in 89 markets. The U.S. and China are the biggest store bases, with 16,864 and 8,011 stores at the end of fiscal 2025. Competition comes from specialty coffee shops, quick-service restaurant chains, and the ready-to-drink coffee aisle, with pressure showing up in price, convenience, and location access.
Sustainability supports supply security and brand trust. Starbucks runs farmer support centers staffed with agronomists and sustainability experts and ties its sourcing programs to long-term coffee supply resilience in key growing regions.
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