Like numerous people throughout the world, I prefer to start my work by drinking several cups of roasted p broth filled v psychoactive compounds. Offered that I’m no cool enough to perform peyote, I’m talking, of course, about coffee. Living in Portland, over there are countless places to get an excellent coffee at nearly any time that the day, but none that those places likewise happen to it is in in the same building where ns work. So, I find myself in ~ Starbucks much more often than not, and also perhaps much more often 보다 I would certainly like. Gift the stickler for performance that ns am, as I walk out of the store within 2 minutes of entering through my (surprisingly ok) blonde roast autumn coffee, I find myself wondering “just how countless cups go Starbucks usage every day?”. As there are around two main left in your fiscal year, let’s take it a look.

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This, no doubt is a vexing inquiry to Starbucks management; castle pay because that each and also every cup, consisting of those the they don’t use. Happily for them, they have detailed store-by-store data on cup usage; enough, probably, to usage time-series evaluation to job future demand. Unfortunately for me, i don’t have that type of data. However, together a publicly traded company, I do have their financial statements and also supplementary data. Happily for me, that’s enough data to usage Fermi estimation to derive that information.

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Setting the Stage

When we say “Starbucks”, perform we average “a usual Starbucks store”, “every Starbucks in the US”, or “every Starbucks in the world”? Luckily for us, your 10-K filing for 2014 not only includes global results however breaks castle down into individual segments. Let’s begin with every Starbucks in the world, and then break it under further.

Next, since we room interested in the number of cups that are used, that must median we space specifically interested in your sales of all set drinks. Ready-to-consume beverages don’t count, and also neither does food, coffee accessories, or music.

According to your 10-k filing, the network revenue together a result of operations because that company-operated stores and licensed stores, together, totaled $14,566,500,000 worldwide, or $14.567 Billion. They also have a (not insignificant) separate classification for revenue from business services, but I will certainly not counting those since the soul of the question comes to physical save locations. In the very same filing, they additionally divulge the in the 52 week period ending Sept 28, 2014, 73% the sales were attributable to beverages. This is actually under 1 percentage allude year over year because that the previous two years.

Given this, we have the right to calculate that the revenue as a result of sleeve operations attributable come beverages is $10.634 Billion

Calculating the mean ticket

Here’s where it gets tricky. There is little to no data about the typical ticket dimension in Starbucks stores. Doubtless, they consider that proprietary and strategic data. This being the case, we’ll have to guess. Fastfoodmenuprices.com contains a nicely formatted table that the Starbucks drinks, sorted by size and price. I’ll take this and use that to identify the mean ticket size. The thing to remember here is the the dimension of the drink co-varies with the price, so we really only require to think about one that them. If us assume the consumers space price sensitive, then it makes sense the the the very least expensive items will command the many sales a ratio of the total.

That is, on a macro scale, the sales of an object as a proportion of the full will be inversely pertained to its price. One means to calculate this partnership to determine the ratio of any one food selection item’s price to that of the highest item (producing value equalling one for the highest possible priced item), and then taking the train station of that value. By climate calculating the ratio of the inverses you deserve to identify the percent of sales attributable to the any type of given item together that lower priced items have greater sales totals.

With this calculation, we have the right to then take it the weighted median of each drink permutation utilizing its %total and calculate, nominally, the expense of the average drink in ~ Starbucks. Perform the math, and also you obtain $3.61. Interestingly enough, because the sport of the price range is so low and there space so many individual products, the individual donation to the mean ticket of any type of given drink is similar to at least 13 far-reaching digits. Certainly an oddity, but $3.61 definitely feels right.

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Bringing it every together

Now the we recognize the median ticket because that each drink, we have the right to calculate how many drinks Starbucks stores throughout the world made (assuming they share pricing with the joined States; I’m not certain I’ll get much better data for this). Offered revenue that $10.634 Billion and an median drink expense of $3.61, i calculate the Starbucks stores made 2,945,706,371 drinks between September 27, 2013 and September 28, 2014. In words, that is 2.946 billion drinks.

If 1% of customers who buy drinks lug their own reusable containers (for a $0.10 discount), this indicates that the number of cups offered in Starbucks shop is 2.916 Billion. Together a side note, ns wonder if this 1% is accurate. If the is the case, climate Starbucks is leaving $29,457,063.71 the revenue ~ above the table every year. That’s nothing come sneeze at, even if you’re Starbucks, together I am pretty sure that that does not approach their all price for cup (see this Amazon listing to illustrate just how cheap cups deserve to be for consumers).

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This, in turn, brings up all kinds that questions around per-store utilization, or everyday totals. But that’s an undertaking for one more day. Because that now, we know that in their last annual reporting period, Starbucks most likely used between 2.916 and 2.946 billion cup at your stores, or an typical of 8,070,428 per day. Interestingly, Starbucks’ very own website claims that castle “account for roughly 4 exchange rate cups worldwide each year“. I wonder whereby such a sizable difference comes in. The sheer scale of the difference implies the the difference cannot be defined by methodological error alone, especially due to the fact that that number should encompass the population of cup that space diverted come the usage of reusable containers.