Starbucks(Nasdaq: SBUX) is the largest coffee bar chain in the U.S. In fact, they are the largest in the world, with some 2,600 stores worldwide. These stores all have similar products, similar looks, similar music, and a similar feel to them. In fact, this is the point. Starbucks tries to deliver the same experience to coffee drinkers in Seattle, New York, London, Kuwait City, and Taipei. Starbucks also offers services to companies to supply coffee and related items to their employees, owns a supermarket channel run by Kraft Foods, and sells its coffee and other items directly to customers through catalogs and its website. On top of these items, the company has an agreement with Pepsi-Cola to develop and produce bottled coffee drinks like the "Frappuccino" drinks and an agreement with Dreyer's Grand Ice Cream to produce different flavors of ice cream. Finally, the company provides coffee service to customers like airlines and hotels. To put all this in perspective, in FY1999, retail sales accounted for about 85% of revenues while the myriad of other ventures claimed the remaining 15%. What's next for the coffee giant? Don't miss Foolish analyst Bob Fredeen's quarterly reports!
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