Coffee Shop Business - A Good Investment?

An Overview of Starbucks

In 1971 Starbucks was founded as a coffee bean retailer and has now grown to a chain with more than 12,000 houses all over the world. As a now iconic brand associated with coffee, Starbucks has become one of the largest providers of coffee products in the world. But with strong competition is Starbucks such a good investment?

Coffee Business - A Recession Proof Concept

As a brand and product itself, Starbucks is known for its quality product worldwide. But in times of a recession are people still paying $4-5 for a coffee? The answer is yes.

The worlds fixation with caffeine and the morning coffee is fuelling demand worldwide, not only in out-of-home businesses but also in home with pre packaged coffee products.

Starbucks Share Price Performance

Starbucks has bounced back from the global recession, and other smaller coffee chains and coffee franchises are doing the same, seeing profits and share prices with steady increase.

Starbucks (SBUX) is currently trading on various world markets with great performance in the NASDAQ. It’s ranging the $18 mark (August 2009) and has experienced an increase of almost 90% in 2009. Not bad for a non-smoking coffee shop!

Starbucks Franchise or Corporate?

Starbucks doesn’t franchise so all the Starbucks coffee shops are corporate owned. However, don’t let yourself down; with a clear view of the share price performance, you can clearly see you don’t need to franchise to make money in the coffee shop industry.