SWOT ANALYSIS COFFEE BEAN AND TEA LEAF

STRENGTH

Recruitment, training and recognition program

The Coffee Bean & Tea Leaf has established a regional office in Singapore to

provide training and recruitment support for the region. The previous owner

provides no assistance in recruitment of key managers. They were recruited with the

assistance of a local consultant.

Then each outlet of The Coffee Bean & Tea Leaf can lead and control by the

manager who is suitable enough and have knowledge and experience about the

region. Then they always have the greatest ability to find suitable adaptable

strategies. In additional, special training is provided to staff to be more forward in

greeting and helping the customers.

The Coffee Bean & Tea Leaf has managed to maintain several traditions as secrets of

their success, one of which is having their Team Members provide each customer

with a Total Quality Experience inspired from the company’s Core Values,

F.R.O.T.H: Friendly, Respect, Ownership, Teamwork and Honesty. When The

Coffee Bean & Tea Leaf (The Coffee Bean) stores open their doors, they aren’t just

opening them to customers—they are opening them to new Team Members, too.

Company’s marketing strategy

All the stores of The Coffee Bean and Tea Leaf were located at high traffic, high

visible locations in each Asian market. That the market entry strategies have found to

be used by The Coffee Bean and Tea Leaf in managing their foreign franchisees

when expanding into Asia include master franchising and company owned-stores.

The marketing approach is essential to gain a competitive advantage for The Coffee

Bean & Tea Leaf in the foreign market. The construct included market entry, site

location, and market positioning. The reason for The Coffee Bean & Tea Leaf to

choose master franchise as its form of franchising is because of that the master

franchising was the most popular mode of entry into distant and cultural dissimilar

market such as Asia.

The Coffee Bean & Tea Leaf found that the sale of a master franchise as a quick “off

the peg” method of establishing a franchise operation has often encountered

problems related to differences in the social, economical and cultural environment of

the two countries which have necessitated substantial adaptations and modifications

to the original product, systems and marketing.

Instead of sub-franchising the units, the master franchisees prefer to own and run the

entire unit. When the CEO of The Coffee Bean & Tea Leaf was asked why, he said:

“The reason is attributed largely to be limited size of the marketplace as the products

are targeted at specific niche rather than the general public…coupled with the high

cost of rent, franchisees will not to be financially viable if the ownership is limited to

one or two stores.” It entered Singapore, Malaysia, and Taiwan by master

franchising. In the other hand, The Coffee Bean & Tea Leaf prefers to use company-

owned stores in Hong Kong, Australia and United States. Whereas for complex

markets such as Japan, Philippines and the Middle East, franchising is more favored.

Company’s franchise practice

The Coffee Bean & Tea Leaf encourage information exchange between franchisor

and franchisee to get a better understanding about the environment and problems

which faced by the franchisee. Regular communications were made between the

franchisor and franchisees during early stages of expansion into a region. The Coffee

Bean & Tea Leaf also provides franchise training to the franchisees and key

manager. For example, the first master franchisee and key managers spent 6 weeks

training in the United States.

Overall The Coffee Bean & Tea Leaf appears to be making few modifications for

their international franchise agreement, which is the template used for domestic

franchising. These small firms rely heavily on the professional expertise and advice

of their solicitors who specialize in domestic and international franchising.

Therefore, having an appropriate solicitor who specializes in international

franchising will compensate for the lack of the ability to negotiate the contractual

modifications and handle contract enforcement to help The Coffee Bean & Tea Leaf

build a good and long-term relationship with its franchisees.

Intelligence of the leader

The Coffee Bean & Tea Leaf was established by Hyman in 1963 opening its first store

in Brentwood, California which continues to operate today as one of our highest

volume and highest profile stores. This achievement comes from the intelligence of

the franchisor; Hyman awarded Sunvic the master franchise rights for Singapore,

Malaysia, Taiwan and Australia for 20 years. Over the next three months, a six-weeks

training was provided in the U.S. to key managers in product knowledge such as

coffee and tea but nothing management in stores.

The decision of Hyman to identify the master franchisee characteristics that is

required for success in Asia. However, no research has hitherto been done, especially

in Asia, in determining desired master franchisee characteristics. The master

franchisee characteristics associated with success in Asia are financial strength,

entrepreneurial and like-mindedness. The master franchisee owns a highly successful

luxury watch distributorship and regional entertainment company in Asia, owns and

operates 63 outlets in Singapore, Malaysia and Taiwan.

Hyman came to Singapore for a couple of weeks to assist in the opening of the

inaugural store. This was the first time they had ever set foot in Singapore. Victor

recalled that early battles that were fought the Hyman over changing menu and

operational procedures. As Victor’s recalled: “I wanted to expand the menu to include

sandwiches as Singaporeans need to have food with their coffee. I felt the drinks

were too sweet for Asians, so I proposed some change. The negotiations were not

easy because to tell them it was like an insult- ‘You are a franchisee and you’re

telling me what to do?’”

For the current owner, Victor undertakes evaluation of government policies on an ad

hoc manner because he believes in unsolicited enquires only. He has extensive

knowledge of operating in Asia. Victor cautions that although the Asian youth market

is highly brand conscious, they are very perceptive when it comes to food. Victor

admits that those The Coffee Bean and Tea Leaf outlets in suburbs of middle to high

socio economic groups are performing financially better than those of low socio

economic groups.

In July 1999, Sunvic acquired a substantial stake in the California-based International

Coffee and Tea LLC, which own the global franchise. This move has effectively

transformed the former master franchisee to franchisor. According to Victor, the

move to buy over the business was logical one (Koh 2000). “I’ve watch many other

businesses were the principals take back the franchisee after you’ve spent all your

effort in building up the business. You’re at their mercy, and as your contract gets

closer with the expiry date, things will get harder for you,” Victor said.

Company’s business strategy

For the concept of standardization of The Coffee Bean & Tea Leaf, branding and

image are consistent in host markets with that of home market. Despite the

expectation that cultural differences may affect the demand for their products and

services, The Coffee Bean & Tea Leaf felt that maintaining standardization was more

important than adaptation. Standardization is enforced by The Coffee Bean & Tea

Leaf on branding to ensure that the brand image and value is being perceived

consistently by its target customers in all markets.

Adaptation has also applied to the product offering by The Coffee Bean & Tea Leaf.

In its home country The Coffee Bean & Tea Leaf have a limited range of food and

beverage items in their outlets. However, The Coffee Bean & Tea Leaf had included

a wider range of hot food items in Asia as Asians need to have food with their

coffees

Outstanding quality of input and output

Both the good quality of input and output has brings a big achievement for The

Coffee Bean & Tea Leaf. The foundation of The Coffee Bean & Tea Leaf is a

commitment to quality. The Coffee Bean & Tea Leaf produces and serves only the

finest coffees and teas from around the world. Each year The Coffee Bean & Tea Leaf

search out the best harvests from Sumatra to Costa Rica to bring to their tasting room

for inspection and sampling and accept only the highest grades of green coffee and

full leaf tea.

Experience and innovation

For over thirty-seven years, The Coffee Bean & Tea Leaf has developed the finest

resources, roasting techniques, retailing know-how, and innovative trend setting

coffee and tea drinks. Its founder Herbert B. Hyman is recognized as the "founding

father "of specialty coffee in America and has helped mentor many of the leading

coffee executives in the industry.

At the same time, The Coffee Bean & Tea Leaf also continually builds upon vast

experience to invent numerous industry firsts. The Coffee Bean & Tea Leaf invented

its trademark Ice Blended ®, the frozen mocha drink that created a new drink

category and is the most popular frozen coffee drink in the world.

The Coffee Bean & Tea Leaf also invented the first specialty coffee extract ever

produced. Their French Deluxe ™vanilla and Special Dutch ™ Chocolate powders

are industry firsts that gives coffee drinks a flavor vastly superior to any other. The

Coffee Bean & Tea Leaf newest innovations were the Chai Latté, a creamy sweet

spicy chai tea drink and its juice-based Ice Blended® Drinks, a variety of smoothies

blended with French Deluxe ™vanilla powder that have once again set an industry

standard.

Community involvement

The Coffee Bean & Tea Leaf maintains a strong commitment to the community with

numerous programs contributing to local and charitable causes. The company is

proud supporters of many schools, charities and institutions both nationally and

abroad that benefits our communities, customers and employees. The Coffee Bean &

Tea Leaf can be sure that wherever there is a The Coffee Bean & Tea Leaf, they are

working hard to be a 'good neighbor'.

The Coffee Bean & Tea Leaf has earned its good reputation by maintaining a strong

commitment to the community with numerous programs contributing to local and

charitable causes and as the premier chain of specialty coffee stores in the world with

award-winning drinks that are known across the world.

WEAKNESS

Franchisee’s policy

The Coffee Bean & Tea Leaf does not allow its master franchisees to sub-franchise

any of their outlets in the Middle East and Asia. The reason is attributed largely to

the limited size of the specialty coffee industry in these market. The Coffee Bean &

Tea Leaf is targeted at specific niche markets rather than the general public.

Therefore, coupled with the high cost of rent, franchisees will not able to be

financially viable if the ownership is limited to one or two stores.

To be a master franchisee of The Coffee Bean & Tea Leaf, one must possess the

following characteristics: it must be a public company; it must demonstrate that it

has the fund and infrastructure to open among 30 to 40 outlets and it also must be

currently running a successful business.

OPPORTUNITY

Market potential

“With the success of Singapore,Malaysia and Indonesia, we realize there was a great

potential in Asia. We knew we had to take it over,” said Victor in his interview with

Jordan (1999). Now, the Sassoon has very ambitious plans for the U.S. This is

because of the highly potential of growth of the market in U.S. Victor plans to further

his market plan and expand the share market of The Coffee Bean & Tea Leaf

worldwide because the potential of the market. From 60 outlets on Southern

California, they plan to open additional outlets in California, Nevada and Arizona

and may be as far as Chicago and New York. The company has consulted investment

banker and may try to spin off the Asian operation of The Coffee Bean and Tea Leaf

in the near future; it may also try to list the U.S. Company later.

Changing of lifestyle

Despite major economic recessions, terrorist attacks and two wars over the past two

decades, the specialty coffee industry has grown every year. One industry observer

said, "When times are good the coffeehouse industry is great. And when times are

bad the coffeehouse industry is great."

Lifestyle factors converge to make the coffee industry strong at all times. The

stimulant effect of coffee is an important reason why many hard-working, fast-paced

Malaysian consider a stop at their local coffeehouse a necessary part of their day.

Conversely, coffeehouses provide calm, inviting environment for people to socialize,

relax or catch up on work.

Young people under the legal drinking age are one of the fastest-growing segments

of the coffee drinking market. Coffeehouses provide them with a much-needed place

to meet with their friends. Besides, entertainment on weekend nights draws a young

group of enthusiastic customers. The surge in interest in coffee drinking among

young people assures a diverse, receptive, sophisticated customer base now and in

the future.

Older adults also enjoy the fact that for the relatively modest price of a cup of coffee

and snack, they can meet with their friends, relax or work. Instead of going to a bar

and paying for an alcoholic drink or a restaurant where a meal usually comes with a

hefty price tag, the coffeehouse is an intimate yet inexpensive venue.

THREAT

Competition

The global coffee market is a very competitive sector and The Coffee Bean & Tea

Leaf must compete against the likes of restaurants such as McDonald, Kentucky Fried

Chicken (KFC) and coffee shops such as Starbucks, Dome and Old Town Café. A

major competitor with substantially greater financial, marketing and operating

resources than The Coffee Beans & Tea Leaf could enter this market at any time and

compete directly against the company. Besides Coffee manufacturers including

Starbucks Corporation, The Proctor & Gamble Company, and Nestle USA, Inc.

distribute premium coffee products nationally in supermarkets and convenience

stores. Many of these products may be substitutes for The Coffee Bean & Tea Leaf’s

coffees and coffee drinks. So The Coffee Bean & Tea Leaf must be aware of

competition on all levels and maintain its operational performance if it is to retain its

status as the world’s leading specialty coffee retailer.

Host country risk management

Risk management issues such as government policies, regulations, macroeconomic

variations and monetary uncertainties are important to The Coffee Bean & Tea Leaf

on its international franchising. In recent years, the greatest growth in international

franchising occurred in Asia, South America, Central America and Mexico. This is

because the markets of most of the developed countries became increasingly in

saturated and competitive.

Therefore, as more and more foreign franchisors expand to culturally diverse

countries such as East Asia, host country policy evaluation and foreign exchange

management are fundamental capabilities that are important for The Coffee Bean &

Tea Leaf to develop. Understanding host country government policies concerning to

the transfer and repatriation of dividends, fees and royalties has been found to be an

important capability for The Coffee Bean & Tea Leaf. The Coffee Bean & Tea Leaf

conducts a very little host government policy evaluation. The reason for this could be

attributed to a lack of resources and reactive approach to market expansion.

Culture environmental aspects

The need for The Coffee Bean & Tea Leaf to adapt its concept, business format, and

products to the culture of host country comes to be a threat for The Coffee Bean &

Tea Leaf if it failed to meet the culture of host country. The cultural environment

adds complexity to franchising in a foreign country. Culture impacts the negotiation

of contracts, the daily operations, the hiring of personnel, as well as the format of the

franchise. The very strengths of the franchise format, its standardization, make its

successful of replication in foreign markets difficult to The Coffee Bean & Tea Leaf.

Franchising requires a high degree of standardization to be effective; however, in

foreign markets the pressure to adapt the product or service is frequently high to The

Coffee Bean & Tea Leaf.

Enthusiasm of health consciousness

New age beverages have experienced a rebirth as manufactures have capitalized on

consumers’ growing interest in herbal remedies such as Tongkat Ali and Kacip

Fatimah. People are cutting down on caffeine but the consumption of decaffeinated

coffee has not seen an increase. Consumer attitude to health care are changing and

more people are taking responsibility for their health rather than passively accepting

medical decisions. Within this desire to exercise individual decision, many

consumers are looking outside the traditional realm pharmaceuticals to herbal

remedies and supplements. As a result, demand for coffee from The Coffee Bean &

Tea Leaf will decline because consumer changing their lifestyle and they are more

concern about their health care and they also believe that drinking coffee will harm

their health.

COMPANY PROFILE

COFFEE BEAN AND TEA LEAF

LOS ANGELES

Franchise Home

The Coffee Bean & Tea Leaf® was founded by Herbert Hyman in 1963, with the

mission to source and serve the best coffees and teas in the world. Since its

inception from one café in Brentwood, Los Angeles, The Coffee Bean & Tea

Leaf® has grown to become an international icon with more than 750 cafes in 22

countries. 

The Coffee Bean & Tea Leaf® embodies a passion for quality, customer service,

education, and community. Every beverage, store and potential franchisee should

encompass these core foundations.

The Coffee Bean and Tea Leaf has grown to become a very successful coffee

chain, both nationally and internationally. In fact, it is one of the oldest and

largest chains for specialty coffee and tea stores opening up first in Los Angeles

in 1963.

Founded in 1963, The Coffee Bean & Tea Leaf® is the oldest and largest

privately-held chain of specialty coffee and tea stores in the United States. With a

reputation for excellence, the company is a leader in product innovations, having

developed The Original Ice Blended® coffee beverage. The Coffee Bean & Tea

Leaf® currently has 712 stores, 279 of which are company owned and 429 are

franchised. These stores blanket the world in markets such as California, Arizona,

Nevada, Singapore, Malaysia, Korea, Brunei, Indonesia,Vietnam, UAE, Israel,

Australia, China, Egypt and we continue to expand rapidly.

We are dedicated to serving our community and providing a destination and

lifestyle quality experience. We take pride in our handcrafted oak paneled stores;

the ideal social gathering place to build respectful relationships with our friends,

and customers in the community. Our store environment truly is cozy, warm and

inviting and is ideal for just enjoying The coffee Bean & Tea Leaf experience

Coffee Bean and Tea Leaf Franchise

The Coffee Bean & Tea Leaf has always been passionate about serving our

customers the best coffees and teas from around the world. Today, through our

numerous coffee shop franchises, we remain committed to our original vision of

quality and customer service. We are dedicated to serving our community and

providing a destination and lifestyle quality experience. Our store environment

truly is cozy, warm and inviting and is ideal for just enjoying The Coffee Bean &

Tea Leaf experience. Today, with more than 734 stores in 20 countries and 4

states, and we have plans for continued expansion in the US and around the

world.

The Coffee Bean & Tea Leaf coffee business system is comprised of experienced

and passionate area developers and multi unit franchisees who commit to a set

territory with a mutually agreed upon development agreement. Most development

commitments range from 15 to 100 stores. We join with you to make sure you

have all of the tools that you need to be a successful business owner with The

Coffee Bean & Tea Leaf.

 Our core value

To create a spirit within our company that inspires our team members to provide

our customers a total quality experience: quality of product, service and

environment.

  Our mission

We believe in these fundamental truths that guide us through our daily lives at The

Coffee Bean & Tea Leaf:

Friendly: with each other and our customers

Respect: each others’ values, opinions and individual diversity

Ownership: because we are proudly entrusted with the responsibility

Teamwork: because we achieve success by working together

Honesty: because we are trustful to each other and ourselves.

INDONESIA

Herbert B. Hyman started The Coffee Bean & Tea Leaf® in 1963 with a

dedication to excellence and quality, and his efforts made him the founding father

of gourmet coffee in California. The Coffee Bean & Tea Leaf® has since grown

into one of the largest privately- owned, family-run coffee and tea companies in

the world.

It currently has more than 315 stores in California, Arizona, Nevada, Singapore,

Malaysia, Korea, Brunei, Indonesia, UAE, Kuwait, Israel, Australia, China,

Philippines and soon to be in Hawaii. The endurance and popularity of The Bean,

as it is affectionately referred to by devotees, can be attributed to the high

standards that were established from the beginning.

From trend-setting drinks like the World Famous Ice Blended®, to the employees

who become a part of the communities they work in, The Coffee Bean & Tea

Leaf® has discovered the formula for a successful coffee and tea company.

The endurance and popularity of The Bean, as it is affectionately referred to by

devotees, can be attributed to the high standards that were established from the

beginning. From trend-setting drinks like the World Famous Ice Blended®, to the

employees

who become a part of the communities they work in, The Coffee Bean & Tea

Leaf® has discovered the formula for a successful coffee and tea company. 

Mission

To create a spirit within our company that inspires our Team Members to provide

our customers with a Total Quality Experience: Quality of Product, Service and

Environment.

Core Values

We believe in these Fundamental truths that guide us through our daily lives at

The Coffee Bean & Tea Leaf®: 

Friendly - with each other and our customers

Respect - for each other's values, opinions and individual diversity

Ownership - because we are proudly entrusted with the responsibility

Teamwork - because we achieve success by working together

Honesty - because we are truthful to each other and to ourselves

Because You Deserve "Simply the Best" 

The Coffee Bean & Tea Leaf Indonesia

The Coffee Bean & Tea Leaf® come in Indonesia since 2001. Under license

of PT. Trans Coffeesince 2006, The Coffee Bean & Tea Leaf Indonesia is a

member of Trans Corporation. Begin with 9 outlets in Jakarta and Surabaya,

now PT. Trans Coffee develops the business by open new outlets and until

November 2008 already has 31 outlets in Jakarta, Tangerang, Bandung,

Surabaya, and Bali. 

With the best coffees and teas, The Coffee Bean & Tea Leaf Indonesia serves the

customers in a professionals and friendly services. To be a leader in food and

beverages industry in Indonesia is a goal of PT. Trans Coffee.

The Coffee Bean & Tea Leaf® come in Indonesia since 2001. Under license

of PT. Trans Coffeesince 2006, The Coffee Bean & Tea Leaf Indonesia is a

member of Trans Corporation. Begin with 9 outlets in Jakarta and Surabaya,

now PT. Trans Coffee develops the business by open new outlets and until

November 2008 already has 31 outlets in Jakarta, Tangerang, Bandung,

Surabaya, and Bali. 

With the best coffees and teas, The Coffee Bean & Tea Leaf Indonesia serves the

customers in a professionals and friendly services. To be a leader in food and

beverages industry in Indonesia is a goal of PT. Trans Coffee.

BLACK CANYON

THAILAND

Black Canyon (Thailand) is the owner of the "Black Canyon Coffee" brand of

quick service restaurants and kiosks, with more than 180 branches located

throughout Thailand, as well as a rapidly expanding international network than

includes Malaysia, Singapore, Indonesia and Myanmar.

The company was formed in 1993 to manage the development of the brand. Black

Canyon has grown from 1 branch in 1993 to 100 in 2003. About one-half of the

branches are company-owned while the rest are franchised. The company began

expanding internationally in 2002 and now has branches in Singapore, Malaysia

and Indonesia.

In Thailand, branches are found in most major shopping centers and super-stores,

as well as gas stations, airports, hospitals and hotels. Branches serve not only the

company's distinctive coffees, but also a complete range of Thai and international

dishes. Black Canyon is 97% Thai and 3% American owned.

Black Canyon (Thailand) Co. Ltd. was established in 1993 to operate restaurants

serving food, coffee and drinks under the "Black Canyon Coffee" name. The

company is the registered owner of the "Black Canyon" trademark and all

associated service marks.

The company's business is the operation of coffee houses serving food and coffee

of the highest quality, located in shopping centers, movie theaters and gas stations

throughout Thailand, as well as an increasing number of overseas countries.

Black Canyon owns and operates some branches directly, while others are owned

and operated by franchisees. All branches are decorated to the same high

standard, with overall designs selected from a palette of available options

depending on the type of location. Black Canyon's excellent reputation is based

on serving coffees of the highest quality, with the best aroma and taste, made

from 100% fresh coffee beans imported from around the world, as well as those

grown in Thailand under Royal patronage.

Black Canyon coffee houses also serve an extensive food menu. The menu

combines Western dishes such as soups, salads, pasta and French fries with

Eastern favorites like fried rice and noodles; and Thai specialties tom yum, som-

tam, etc. A unique feature of the menu are the "fusion" dishes which combine

East and West, examples of which are spaghetti with green curry sauce, Japanese

Udom noodles in tom yum soup, fusilli with a tuna tom yum sauce, spaghetti with

red panang shrimp sauce, etc.

Black Canyon now has more than 160 branches all around Thailand. Black

Canyon also operates kiosks under the "Black Canyon X'press" name in several

stations of Bangkok's elevated commuter train system (BTS Skytrain). Each year,

Black Canyon serves more than one million cups of coffee to Thais and

foreigners visiting Thailand, who appreciate the flavor and aroma of real coffee,

and keep coming back for more. Experts at Black Canyon monitor and control the

quality of every batch of coffee to ensure that our customers get the same

experience every time they visit a Black Canyon restaurant.

Black Canyon is the largest and most well known operator of franchised coffee

houses in Thailand. The management and every employee has as their goal to

continually develop and improve the Black Canyon Coffee brand.

INDONESIA

Black Canyon founded by Dr. Thanong Bidaya and Mr. Pravit Chitnarapong.

Black Canyon Thailand established in 1993 by serving affordable premium

quality of coffee, food and beverages. Black Canyon Coffee has grown to more

than 170 outlets in Thailand. In 2002 Black Canyon Coffee open their foreign

market business in Singapore, Malaysia, Indonesia and Myanmar.

First Indonesia Black Canyon Coffee outlets open in 2005 at Discovery Shopping

Mall, Kuta, Bali. Since then Black Canyon Coffee Indonesia (PT.Boga Citra

Cemerlang) has opened 18 outlets in major cities such as Medan, Batam, Jakarta,

Bandung, Semarang, Manado, Makasar, Surabaya and Bali 

Black Canyon Coffee is the largest coffee franchise originating from Thailand

that serves the best coffee quality, flavor and aroma that is made from 100%

choice of coffee beans imported from the best plants in the world that is as good

as the original Arabica beans grown in the mountains of western region Thailand.

In addition to providing the best coffee freshness also provides International

Cuisine Thai healthy foods at affordable prices ternyaman location.

With the motto "A Drink from paradise ... Available on Earth is inspired by the

word - Thalirene's famous words such as" The best coffee is as black as the devil,

hot as hell, pure as an angel, and sweet as love! ". Indonesia Black Canyon

Coffee vision statemen is to be the most popular Coffee House and International

Restaurant in Indonesia.

STARBUCKS COFFEE

INDONESIA

The Starbucks Story

Our story began in 1971. Back then we were a roaster and retailer of whole bean

and ground coffee, tea and spices with a single store in Seattle's Pike Place

Market.Today, we are privileged to welcome millions of customers through our

doors every day, in more than 16,000 locations in over 50 countries.

Folklore Starbucks is named after the first mate in Herman Melville's Moby

Dick . Our logo is also inspired by the sea – featuring a twin-tailed siren from

Greek mythology.

Starbucks Mission

Our mission is to inspire and nurture the human spirit – one person, one cup, and

one neighborhood at a time.

Our Coffee

We've always believed in serving the best coffee possible. It's our goal for all of

our coffee to be grown under the highest standards of quality, using ethical

trading and responsible growing practices. Our coffee buyers personally travel to

coffee farms in Latin America, Africa and Asia to select the highest quality

arabica beans. Once these quality beans arrive at our roasting plants, Starbucks

experts bring out the balance and rich flavor of the beans through the signature

Starbucks Roast™.

Our Stores

Our stores are a welcoming third place for meeting friends and family, enjoying a

quiet moment alone with a book or simply finding a familiar place in a new city.

Total stores 16,706 (as of Dec. 27, 2009) 8,850 Company-operated stores. 7,856

Licensed stores. Operating in more than 50 countries Argentina, Aruba ,

Australia, Austria, Bahamas, Bahrain, Belgium, Brazil, Bulgaria, Canada, Chile,

China, Cyprus, Czech Republic, Denmark, Egypt, France, Germany, Greece,

Hong Kong, Indonesia, Ireland, Japan, Jordan, Korea, Kuwait, Lebanon,

Malaysia, Mexico, New Zealand, Netherlands, Northern Ireland, Oman, Peru,

Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Scotland,

Singapore, Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates,

United States and Wales.

Our Partners

We offer the finest coffees in the world, grown, prepared and served by the finest

people. Our employees, who we call partners, are at the heart of the Starbucks

Experience . Our store partners are committed to coffee knowledge, product

expertise and customer service. We believe in treating our partners with respect

and dignity. We are proud to offer two landmark programs for our partners:

comprehensive health coverage for eligible full- and part-time partners and equity

in the company in the form of stock options.

Our Products

Coffee : More than 30 blends and single-origin premium arabica coffees.

Handcrafted Beverages Fresh-brewed coffee, hot and iced espresso beverages,

coffee and non-coffee blended beverages, Vivanno™ smoothies and Tazo® teas.

Merchandise Home espresso machines, coffee brewers and grinders, coffee mugs

and accessories, packaged goods, music, books and gift items.

Fresh Food : Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and

fruit cups.Consumer Products VIA™ Ready Brew coffee, bottled Starbucks

Frappuccino® beverages, Starbucks Discoveries® chilled cup coffee (in Japan,

Taiwan and Korea), Starbucks DoubleShot® espresso drinks, Starbucks® Iced

Coffee, whole bean coffee and Tazo® teas at grocery and a line of super-

premium ice creams. Brand Portfolio

Tazo tea, Ethos water, Seattle's Best Coffee and Torrefazione Italia Coffee.

Investor Information

Starbucks went public on June 26, 1992 at a price of $17 per share (or

$0.53 per share,

adjusted for subsequent stock splits) and closed trading that first day at

$21.50 per share.

Starbucks was incorporated under the laws of the State of Washington,

in Olympia, Washington, on November 4, 1985.

Starbucks Corporation's common stock is listed on NASDAQ, under the

trading symbol SBUX.

Being A Responsible Company

We are committed to doing business responsibly and conducting ourselves in

ways that earn the trust and respect of our customers, partners and neighbors. We

call this Starbucks™ Shared Planet™ – our commitment to doing business

responsibly. Within this, we have identified three areas of focus: ethical sourcing,

environmental stewardship and community involvement.

Ethical Sourcing

We've developed strong, long-term relationships with farmers all over the world

that help ensure we are able to buy the high-quality coffee our customers expect

from us. It's our goal that by 2015, all of our coffee will be grown using ethical

trading and responsible growing practices.

Environmental Stewardship

We share our customers' commitment to the environment. And we believe in the

importance of caring for our planet and encouraging others to do the same. It is

our goal that by 2015, 100% of our cups will be reusable or recyclable. We will

also work to significantly reduce our environmental footprint through energy and

water conservation, recycling and green construction.

Community Involvement

From the neighborhoods where our stores are located to the ones where our

coffee is grown – we believe in being involved in the communities we're a part

of. Bringing people together, inspiring change and making a difference in

people's lives – it's all part of being a good neighbor. By 2015, we plan to

contribute one million volunteer hours each year to our communities

Mission statement

The Way We Do Business : To inspire and nurture the human spirit— one

person, one cup, and one neighborhood at a time.

Here are the principles of how we live that every day:

Our Coffee

It has always been, and will always be, about quality. We’re passionate about

ethically sourcing the finest coffee beans, roasting them with great care, and

improving the lives of people who grow them. We care deeply about all of this;

our work is never done.

Our Partners

We’re called partners, because it’s not just a job, it’s our passion. Together, we

embrace diversity to create a place where each of us can be ourselves. We always

treat each other with respect and dignity. And we hold each other to that standard.

Our Customers

When we are fully engaged, we connect with, laugh with, and uplift the lives of

our customers— even if just for a few moments. Sure, it starts with the promise

of a perfectly made beverage, but our work goes far beyond that. It’s really about

human connection.

Our Stores

When our customers feel this sense of belonging, our stores become a haven, a

break from the worries outside, a place where you can meet with friends. It’s

about enjoyment at the speed of life—sometimes slow and savored, sometimes

faster. Always full of humanity.

Our Neighborhood

Every store is part of a community, and we take our responsibility to be good

neighbors seriously. We want to be invited in wherever we do business. We can

be a force for positive action— bringing together our partners, customers, and the

community to contribute every day. Now we see that our responsibility—and our

potential for good—is even larger. The world is looking to Starbucks to set the

new standard, yet again. We will lead.

Our Shareholders

We know that as we deliver in each of these areas, we enjoy the kind of success

that rewards our shareholders. We are fully accountable to get each of these

elements right so that Starbucks—and everyone it touches—can endure and

thrive.

Onward.

Starbucks is committed to a role of environmental leadership in all facets of our

business.

We fulfill this mission by a commitment to:

Understanding of environmental issues and sharing information with our

partners.

Developing innovative and flexible solutions to bring about change.

Striving to buy, sell and use environmentally friendly products.

Recognizing that fiscal responsibility is essential to our environmental

future.

Instilling environmental responsibility as a corporate value.

Measuring and monitoring our progress for each project.

Encouraging all partners to share in our mission.

UNITED STATES

The Starbucks Story

Our story began in 1971. Back then we were a roaster and retailer of whole bean

and ground coffee, tea and spices with a single store in Seattle’s Pike Place

Market.

Today, we are privileged to welcome millions of customers through our doors

every day, in more than 17,000 locations in over 50 countries.

Folklore

Starbucks is named after the first mate in Herman Melville’s Moby Dick. Our

logo is also inspired by the sea – featuring a twin‐tailed siren from Greek

mythology.

Starbucks Mission

Our mission: to inspire and nurture the human spirit – one person, one cup and

one neighborhood at a time.

Our Coffee

We’ve always believed in serving the best coffee possible. It's our goal for all of

our coffee to be grown under the highest standards of quality, using ethical

sourcing practices. Our coffee buyers personally travel to coffee farms in Latin

America, Africa and Asia to select the highest quality arabica beans. Once these

quality beans arrive at our roasting plants, Starbucks experts bring out the balance

and rich flavor of the beans through the signature Starbucks Roast™.

Our Stores

Our stores are a welcoming third place for meeting friends and family, enjoying a

quiet moment alone with a book or simply finding a familiar place in a new city.

Total stores: 17,009 (as of January 2, 2011)

8,870 Company‐owned

8,139 Licensed stores

Operating in more than 50 countries

Argentina, Aruba, Australia, Austria, Bahamas, Bahrain, Belgium, Brazil,

Bulgaria, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Egypt, El

Salvador, England, France, Germany, Greece, Hong Kong, Hungary, Indonesia,

Ireland, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, New Zealand,

Netherlands, Northern Ireland, Oman, Peru, Philippines, Poland, Portugal, Qatar,

Romania, Russia, Saudi Arabia, Scotland, Singapore, South Korea, Spain,

Sweden, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United

States and Wales.

Our Partners

We offer the finest coffees in the world, grown, prepared and served by the finest

people. Our employees, who we call partners, are at the heart of the Starbucks

Experience.

Our Products

Coffee: More than 30 blends and single‐origin premium arabica coffees.

Handcrafted Beverages: Fresh‐brewed coffee, hot and iced espresso beverages,

coffee and non‐coffee blended beverages, Vivanno™ smoothies and Tazo® teas.

Merchandise: Coffee‐ and tea‐brewing equipment, mugs and accessories,

packaged goods, music, books and gift items.

Fresh Food: Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and

fruit cups.

Consumer Products: Products in 13 countries (Austria, Canada, China,

Denmark, Germany, Ireland, Japan, Korea, Mexico, Norway, Spain, UK and

U.S.) in three categories:

Coffee and Tea: Whole bean and ground (Starbucks and Seattle’s Best Coffee

brands), Starbucks VIA® Ready Brew, Tazo® tea filterbags and tea latte

concentrates.

Ready‐to‐Drink (RTD): Starbucks® bottled Frappuccino® coffee drinks,

Starbucks Discoveries® chilled cup coffees, Starbucks Doubleshot® espresso

drinks, Starbucks Doubleshot® Energy+Coffee drinks; Seattle’s Best Coffee®

Iced Lattes, Tazo® bottled iced and juiced teas.

Starbucks® Ice Cream: Super‐premium coffee and coffee‐free flavors.

Brand Portfolio

Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, and Torrefazione Italia

Coffee.

Investor Information

Starbucks went public on June 26, 1992 at a price of $17 per share (or $0.53 per

share, adjusted for subsequent stock splits) and closed trading that first day at

$21.50 per share.

Starbucks was incorporated under the laws of the State of Washington, in

Olympia, Washington, on Nov. 4, 1985.

Starbucks Corporation's common stock is listed on NASDAQ, under the trading

symbol SBUX.

Being a Responsible Company

We are committed to doing business responsibly and conducting ourselves in

ways that earn the trust and respect of our customers, partners and neighbors. We

call this Starbucks™ Shared Planet™ – our commitment to doing business

responsibly.

Ethical Sourcing: We’ve developed strong, long‐term relationships with farmers

all over the world that help ensure we are able to buy the high‐quality coffee our

customers expect from us. It's our goal that by 2015, all of our coffee will be

grown using ethical trading and responsible growing practices.

Environmental Stewardship: We share our customers' commitment to the

environment. And we believe in the importance of caring for our planet and

encouraging others to do the same. It is our goal that by 2015, 100% of our cups

will be reusable or recyclable. We will also work to significantly reduce our

environmental footprint through energy and water conservation, recycling and

green construction.

Our store partners are committed to coffee knowledge, product expertise and

customer service.

We believe in treating our partners with respect and dignity. We are proud to

offer two landmark programs for our partners: comprehensive health coverage for

eligible full‐ and part‐time partners and equity in the company through our Bean

Stock program. Starbucks Company Profile © 2011 STARBUCKS COFFEE

COMPANY. ALL RIGHTS RESERVED.

Community Involvement: From the neighborhoods where our stores are located

to the ones where our coffee is grown – we believe in being involved in the

communities we’re a part of. Bringing people together, inspiring change and

making a difference in people’s lives – it’s all part of being a good neighbor. By

2015, we plan to contribute one million volunteer hours each year to our

communities.

GLORIA JEAN’S COFFEES

INDONESIA

OUR STORY

Gloria Jean’s Coffees is dedicated to offering the world’s highest quality

speciality coffee – from bean to cup.

Australian owned and locally operated, the Gloria Jean’s Coffees family now

stretches far and wide across the globe, with over 1,000 coffee houses in 39

countries.

It is a combination of passion, commitment to our communities and dedication to

delivering the highest quality coffee to our guests that unites our global team in

the same Vision – to be the most loved and respected coffee company in the

world.

OUR COMPANY

Gloria Jean’s Coffees an Australian owned global specialty coffee company, and

is a brand synonymous with coffee quality and leading franchise systems.

The Gloria Jean’s Coffees story began in the USA in 1979 when Gloria Jean and

Ed Kvetko opened a specialty gourmet coffee outlet in a small town just north of

Chicago.

With appreciation for quality coffee growing, it wasn’t long before Gloria Jean’s

Coffees outlets started to appear around the USA.

More than 16 years later, Nabi Saleh, an Australian businessman and coffee

expert, experienced the brand while in the USA and with his business partner,

Peter Irvine, brought Gloria Jean’s Coffees across the globe to Australia.

Australia quickly became Gloria Jean’s Coffees' fastest growing market. So with

a recipe for success, Nabi and Peter set their sights on realising a vision to make

Gloria Jean’s Coffees the most loved and respected coffee company in the world.

In 2004, they returned to the USA and purchased the international branding and

roasting rights for all countries outside of the USA.

Four years later, the story has come full circle. In early 2009 Gloria Jean’s

Coffees International affiliate company, Praise International North America Inc,

completed negotiations to buy Gloria Jean’s Coffees U.S. retail and franchise

operations from its current U.S. owner comprising of 102 coffee houses in 24

states.

Today Gloria Jean’s Coffees is located in numerous countries around the world

and continues to find a place in the hearts of coffee lovers everywhere.

OUR PEOPLE

The diversity in our Gloria Jean's Coffees family is significant but from our

Support office in Australia to our baristas in South Africa & our Logistics

Managers in Turkey, the Gloria Jean's Coffees family is connected by our shared

vision to be "the most loved and respected coffee company in the world". We are

dedicated to excellence and innovation in everything we do and foster a culture of

enthusiasm, family values and a strong belief in people.

OUR BARISTAS

Juggling cups, beans and extracting that perfect espresso shot is all part of the

challenge of meeting our Gloria Jean’s Coffees barista standards. Our dynamic in

store baristas are expertly trained and can help you with the Gloria Jean’s Coffees

art of making the perfect cup of coffee.

OUR COMMITMENT

Our success is thanks to the communities that support us, and in return we aim to

give back whenever possible. We strive to have a positive impact, both on the

communities from where we source our coffee and the communities we serve.

Amongst our many locally based fundraising activities, we support a number of

National and International fundraising projects.

OUR JOURNEY

1979 – Gloria Jean and Ed Kvetko opened a specialty gourmet coffee outlet in a

small town just north of Chicago

1995 – The Australian journey began in 1995 when co-funders Nabi Saleh and

Peter Irvine brought the Gloria Jean’s Coffees brand to Australia from the US,

with the aim of providing Australians with high quality specialty coffee.

1996 – The first Gloria Jean’s Coffees was opened in Miranda, Sydney with the

second store closely following in Eastgardens, Sydney. These concept stores

became the testing ground for the future model of Gloria Jean’s Coffees store

nationally and internationally.

1997 – The Gloria Jean’s Coffees franchise system was born in 1997 – with

Eastgardens and Miranda becoming the first franchised stores.

2003 – Gloria Jean’s Coffees is now present in every state and territory.

````

2004 – Gloria Jean’s Coffees in now Australian owned, after the company buys

the international brand rights from the US (for all counties except the USA and

Puerto Rico).

2008 – Gloria Jean’s Coffees has now opened over 900 stores and signed 36

Master Franchise Agreements across 35 counties worldwide and there are over

470 stores located in Australia. 

2009 - Gloria Jean’s Coffees International affiliate company, Praise International

North America Inc, completed negotiations to buy Gloria Jean’s Coffees U.S.

retail and franchise operations from its current U.S. owner comprising of 102

coffee houses in 24 states.

 2011 – Gloria Jean’s Coffees has now opened over 1,000 stores and signed 42

Master Franchise Agreements across 39 counties worldwide, with over 480 stores

opened in Australia. 

OUR AWARDS

2010

International Franchisor of the Year 2009 - FCA International Franchising Award

Excellence in Marketing Award - FCA Excellence in Franchising Awards

Merit Award Intenational Franchising - FCA Excellence in Franchising Awards

2009

2009 BRW Fast Franchises

2008

Innovation Award at the MYOB Excellence in Franchising Awards

Western Sydney Exporter Award NSW Premier’s Export Awards

BRW Top 1000 company

BRW Top 500 Private company

Golden Bean Roaster

Sydney Royal Coffee Competition

2007

Equal Golden Bean Roaster Award – Bronze Medal Filter Category

Western Sydney Exporter Award Premier’s NSW Export Awards

Food Franchisor of the Year Excellence in Franchising Awards

PricewaterhouseCoopers

Sydney Royal Coffee Competition – silver placing for Gloria Jean’s Coffees 100%

Single Origin Nicaraguan rainforest Alliance whole bean coffee

BRW Hot Franchises ranking 20th fastest growing franchise by revenue and 25th

fastest growing franchise by number of outlets

2006

International Franchisor of the Year by the Franchising & Licensing Association

Singapore (FLA)

Emerging Exporter Award Premier’s NSW Exporter of the Year Awards

Franchise Export Award of the Year Princewaterhouse Coopers Excellence in

Franchising Awards

American Express Supreme Reward for Best Retailer and Bank of Queensland Best

Franchise Awards

OUR BRAND

Gloria Jean’s Coffees' success around the world is built not only on our passion to

offer the best quality coffee but in realising that to be loved and respected you must

first respect the cultures and needs of others. 

That’s why we understand that no matter where you visit us around the world it’s

important that our signature experience also has a touch of local culture and taste. 

So in Turkey we serve traditional Turkish coffee, we have developed a special

Lucuma Chiller in Peru made from a local fruit and even in Australia we offer drinks

made with popular local treats like Tim Tam chocolate biscuits. 

So from Kalgoorlie, in Western Australia to Kazakhstan, in Eastern Europe, we aim

to make all our guests feel truly at home.

OUR VISION

Gloria Jean's Coffees will be the most loved & respected coffee company worldwide

OUR MISSION

Gloria Jean's Coffees is committed to building a unified family who consistently

serve the highest quality coffee and provide outstanding and personalized service in a

vibrant store atmosphere.

OUR VALUES

Partnerships based on integrity and trust 

Commitment to excellence and innovation

a culture of joy and passion 

Belief in people, building & changing lives for the better.

AUSTRALIA

Our Story

Australian owned and locally operated, the Gloria Jean’s Coffees family stretches

far and wide across the country. It is a brew of passion, community and

commitment to delivering the highest quality coffee to our guests that unites our

Australian team in the same Vision – to be the most loved and respected coffee

company in the world.

Our Company

The Gloria Jean’s Coffees Vision is to be the most loved and respected coffee

company in the world. To achieve our Vision we are committed to serving you,

our guests, with the consistently highest quality coffee and outstanding

personalised service in a vibrant store atmosphere. Our Values are based on…

a commitment to excellence

building partnerships that are based on integrity and trust

a belief in people and changing lives

fostering a culture of joy and passion throughout our company

Our Commitment

Committed to community...

Our success is thanks to the communities that support us, and in return we aim to

give back whenever possible. We strive to have a positive impact, both on the

communities from where we source our coffee and the communities we serve.

Amongst our many locally based fundraising activities, we support a number of

National and International fundraising projects.

16 & 17 October 2009 is the UN International Day for the Eradication of Poverty.

Gloria Jean’s Coffees is supporting Opportunity International Australia, a not-for-

profit that helps people out of poverty by providing them with small loans to start

a business, earn an income and provide for their families

We sponsor over 300 disadvantaged children in Brazil, one of the world’s largest

coffee-growing nations, through Compassion by providing nutrition, health care,

and education.

We support Opportunity International, a not-for-profit global leader of

microfinance and enterprise development services, who provide low interest loans

to foster small business and cottage industries in Asia. This enables

disadvantaged entrepreneurs to start or expand a business and work their way out

of poverty.

Melissa Nassif, Jeans for Genes Campaign Manager said, “Gloria Jean’s Coffees

Denim-strating Coffee 101 is one important initiative that is helping us work

towards trying to prevent genetic diseases before they occur in children or, where

that is not possible, to develop better treatments.”

Gloria Jean’s Coffees was the leading retail fundraiser for Jeans for Genes in

2008, raising over $90,000, and has now raised a total of $470,000 since it first

began supporting the charity seven years ago.

To find out more about the ‘Denim-strating Coffee 101’ event and how to

register, please click here.