Starbucks' business model in 2025

When it first appeared on the market, Starbucks did not sell coffee to go, but only coffee beans. Howard Schultz is the one who initiated the movement, inspired by the Italian model, the famous "third place", or a place where it would be possible to meet and relax between home and work. 

Over time, the bet has been largely successful, since it was a question of profoundly transforming the customer experience. Ordering a coffee was not enough, Starbucks wanted to immerse consumers in a real sensory experience, a total immersion. 

In 2025, Starbucks has about 38500 stores worldwide, with a presence in 84 countries. Revenue is $38.7 billion in 2024, up 5.7% from the previous year. 

 

The group's marketing strategy

As we said above, Starbucks focuses a large part of its strategy on the customer experience. It is an essential lever for offering quality products but also for standing out from increasingly tough competition. 

Today, the Starbucks group sells coffee to take away, but not only, since the bet was initially to bet everything on the atmosphere. The shops, the decoration, the music, all in order to create an atmosphere that is both warm and personalized. Customers don't just come to drink a coffee but also to relax and share good times. 

In addition, there are a large number of new products that appear every year, seasonal drinks, vegans, premium ranges. For the brand, it is a question of remaining competitive. 

Finally, digitalization and digital transformation have enabled the group to improve customer satisfaction and get closer to them. The dedicated mobile application has more than 30 million users and as many members in the loyalty program. 

 

Starbucks SWOT Analysis 

Among the main strengths is brand awareness, which allows it to constantly increase its number of customers. As said above, the customer experience is something particularly important for the brand, it allows it to effectively stand out from other brands. The digital ecosystem is efficient, the digital experience is fluid, the application allows users to make their reservations online, to benefit from a complete and advantageous loyalty program. 

As far as weaknesses are concerned, Starbucks still depends a lot on the North American market, which may weaken its position in Europe in the long term. 

It should also be noted that prices remain very high compared to the competition. Even if this is compensated by a richer customer experience, the fact remains that many consumers also look at their wallets. 

In terms of key opportunities, Starbucks is growing significantly in emerging markets, providing a back-up to crises in other countries. In addition, we have talked above about the new vegan ranges that are perfectly in line with the expectations and needs of a large part of the new consumers, often the youngest. 

Customizing products does not fail to add value to the entire service. 

Finally, the main threat comes from competition, which is becoming more and more fierce over time. Among the main competitors, Costa, but also McDonald's, with its famous McCafé, or Dunkin'. 

It should also be noted that the price of coffee is quite volatile, it will depend on several factors, and depending on the situation, this can impact Starbucks in a negative way. Finally, be careful to know how to assess the needs and expectations of consumers, because they are constantly changing.

Starbucks internationally 

Starbucks has managed to expand internationally, strengthening its position in the global market. Its strategy can thus be described as hybrid, since the brand continues to maintain the brand's standards without marking an adaptation to the different countries in which it is located. In China, for example, the products are different, there are more teas and snacks. 

Environmental protection also plays an important role in the group's marketing strategy. Indeed, Starbucks is offering more and more ethical coffees, following a growing demand. Plastics are almost no longer present in packaging, and partnerships with farming communities are more frequent. It is a question of strengthening their brand image, while taking into account the demand. 


And the future, in all this? 

The future of Starbucks depends on a number of criteria, including how to compete with new entrants to the market. This is essential because consumers are constantly attracted to novelty. 

To do this, the group must focus on digital technology, and especially the use of artificial intelligence in order to offer an ever-increasing personalization of the customer experience. 

The future of the brand will also depend on emerging markets, and its ability to adapt to new demand, particularly from Southeast Asia or Africa. 

Ecological awareness is also important, the group must achieve carbon neutrality in the coming years, and the implementation of reusable packaging for example. 

In 2024, Starbucks' results appear to be rather mixed. In any case, this means a need to review the marketing strategy. The group therefore wants to offer simpler products and menus, and refocus the brand on a certain number of values, which is important for customers. 

 

Conclusion

Starbucks remains one of the main players in coffee distribution in the world. The group's business model demonstrates an ability to react to the main crises, even if the brand must pay particular attention to the competition, which continues to grow over the years. The main strengths of this model are the customer experience, which is based on quality products and a rich, emotionally focused in-store experience. Innovation is just as important, not to mention the use of new technologies, including artificial intelligence, which makes it possible to strengthen the personalization of all services.