A Green Coffee Cup System for Starbucks
-
Upload
justin-bean -
Category
Business
-
view
902 -
download
1
description
Transcript of A Green Coffee Cup System for Starbucks
Clean Green Coffee Cup Consortium
Jenn Coyle, Jake Blackshear, Justin Bean
3 Billion Cups / Year
142,
045.
5 M
iles
5X
$0.06 * 3 Billion = $180 Million2% of Operating Expenses
?
Convenience
Return at any location No washing Get your deposit back any time Your cup is still OK! Cup collection services
Loyalty
Marketing
“Starbucks is committed to a role of environmental leadership in all
facets of our business”
-Environmental Mission Statement
Coffee Consumption
Trash$
Paper Cups
Coffee Consumption
Trash$
PaperCups
Coffee Sales
Trash$
PaperCups
Coffee Sales
$$
ReusableCups
$
Cups
Finance Assumptions
• Paper Cup Cost $0.06 ($0.12 Wholesale)
• Green Cup Cost $1($4.50 Retail)
• 3 Billion Cups/Year
• 250 Million Cups for First Month
• 20% Replacement Rate
Break Even Usage
=
If Green Cup costs $1, it pays for itself in 17 uses
Expected Lifetime Usage
=
If Green Cup used 50 times, savings v. paper = $1.98 * 800M Green Cups = $1.584B
Paper Cup Cost Savings $180 Million
Reusable Cup Deposits $1.6 Billion
Reusable Cup Expense ($800 Million)
Gross Profit $980 Million
Annual Profit/Loss Analysis
Efficiency
Money
Green
Image
Now Future
Benefits to the Starbucks Brand