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2018 18

Ever Wondered the Economic Impact of That Starbucks Drink you are Holding? | AngelouEconomics

Written By:  Maurice Ondoy Project Contributor at AngelouEconomics | Have you ever wondered what is the Economic Impact of Starbucks?

“One Venti Caramel Frappuccino for Maurice!”  There is probably only one thing that comes into mind when we hear this – Starbucks.

We’ve heard a lot about one of the giant global coffee companies. Do you know the humble beginnings of the now coffee giant and how has it been affecting the American economy?

The first Starbucks opened in 1971 at Pike Place Market in Seattle, Washington. At first, the store just sold coffee beans and coffee equipment. The name Starbucks came from the novel Moby Dick, specifically Captain Ahab’s first mate, who’s name was Starbuck. 

Starbucks strives to be more than a quality, consistent coffee destination that is friendly and welcoming.   The company focuses on other key factors: atmosphere, customer service, partner (employee) satisfaction. Starbucks focused on being a place where people could lounge with a good book and drink coffee, or a place to go with friends. Through its success, Starbucks changed the mindset of coffee customers worldwide: from a place to buy a cup of coffee to a place to experience a cup of coffee.  

How does this beverage company impact the United States economy? Here is the summary of Starbucks Economic Impacts:  Starbucks logo

  • According to JUST Capital, among the 17 companies in the Consumer Services sector with available U.S. employee totals, Starbucks stands head and shoulders above the others with regards to total U.S. headcount gains. It added 58,000 U.S. employees between the years 2011 to 2016, 72% more than the number 2 domestic job creator in the consumer services industry, the Chipotle Mexican Grill.
  • Starbucks is ramping up its hiring efforts, announcing plans about the creation of more than 240,000 jobs globally by 2021.
  • Starbucks boasted that it had reached its initial goal of hiring 10,000 veterans and military spouses ahead of its 2018 deadline and will be expanding its goal to 25,000 veterans and military spouses by 2025.
  • Starbucks is scheduled to open 100 more military family stores throughout the U.S. within the next five years. These Starbucks stores are intended to support military communities and will be staffed by veterans, advocates, as well as military spouses. As of March 2017, the chain has put up 32 of these stores.
  • Starbucks said it has surpassed its goal of hiring 10,000 "opportunity youth" in America by year 2018 by hiring more than 40,000 youth. The coffee giant said it is helping to jump-start their careers by giving them their first job. Starbucks also said that it will be expanding its goal to 100,000 youth partners by year 2020.
  • Globally, Starbucks has taken part with the United Nations Refugee Agency, International Rescue Committee's #WithRefugees campaign and the Tent Partnership of Refugees to "scale up the company's support and efforts to reach refugee candidates." The coffee giant announced in January of 2017 that it would hire 10,000 refugees by year 2022.
  • Starbucks Corporation will utilize some of the savings from the recent U.S. corporate tax cuts to give their domestic employees pay raises, company stock, as well as expanded benefits with a combined worth of more than $250 million.

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Contact the team at AngelouEconomics about our Economic Impact studies and about our client references including Circuit of the Americas and Austin City Limits Festival.   About AngelouEconomics:

AngelouEconomics has worked with numerous professional and business associations in building dozens of unique economic impact studies among other types of projects including site selection projects as well as strategic economic development projects. Some projects have examined the effects of statewide policy measures, such as the Texas Bathroom Bill or ban on Sanctuary Cities. Other projects have measured the contribution of member networks in terms of jobs, wages, and total economic output. Like this study for Prospera, a nonprofit organization which specializes in providing bilingual assistance to Hispanic entrepreneurs in Florida. Economic impact studies are effective tools for quantifying and illustrating the value of individual professional and business associations. They are versatile, as they can illustrate the value or impact of a specific policy or quantify the economic contribution of your members to the local, regional, and nationwide economies.

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