Restaurant Profile
Starbucks
“To inspire and nurture the human spirit — one person, one cup.”
About
Starbucks opened its first store at Pike Place Market in Seattle in 1971, initially selling whole-bean coffee rather than brewed drinks. The company's transformation came when marketing director Howard Schultz visited Milan in 1983 and was captivated by the Italian espresso bar culture. After a brief detour founding his own Il Giornale chain, Schultz bought Starbucks for $3.8 million in 1987 and immediately began building the espresso-forward coffeehouse model that defines the brand today.
The company went public in 1992 and scaled ferociously through the 1990s, helping popularize espresso drinks — lattes, cappuccinos, mochas — for an American audience that had previously known only drip coffee. The Frappuccino, introduced in 1995 after Starbucks acquired the Santa Barbara-based blended coffee brand Coffee Connection, became one of the highest-margin drinks in QSR history. The Pumpkin Spice Latte, launched in 2003 and mocked relentlessly, quietly became Starbucks' best-selling seasonal beverage of all time.
Starbucks now operates in 84 countries and has made China its second-largest market. Under CEO Brian Niccol (appointed 2024, previously of Chipotle), the company has been restructuring after a difficult 2023-24 period marked by declining US traffic. Despite headwinds, Starbucks remains the world's most valuable restaurant brand and the dominant force in premium coffee globally.
Revenue history
| Year | Revenue |
|---|---|
| 2000 | $2.20B |
| 2005 | $6.40B |
| 2010 | $10.70B |
| 2015 | $19.20B |
| 2019 | $26.50B |
| 2022 | $32.30B |
| 2023 | $36.00B |
Total net revenue for fiscal year 2023 (ended October 2023). Starbucks operates most of its US stores directly rather than franchising.
Signature Items & Price History
Launch price and year, historical price milestones, and how the item's price growth compares to U.S. CPI inflation over the same period.
Caffe Latte (Tall, 12 oz)
Two shots of espresso topped with steamed whole milk and a thin layer of microfoam.
Historical prices
| Year | Price | vs. Prior |
|---|---|---|
| 1987 | $1.75 | — |
| 1995 | $2.25 | +28.57% over 8yrs |
| 2000 | $2.75 | +22.22% over 5yrs |
| 2010 | $3.25 | +18.18% over 10yrs |
| 2019 | $3.95 | +21.54% over 9yrs |
| 2025 | $4.75 | +20.25% over 6yrs |
Price growth vs. CPI inflation
The foundational Starbucks drink, introduced when Howard Schultz relaunched the company as an espresso bar in 1987. Latte prices have risen modestly — near CPI levels — compared to more elaborate seasonal beverages.
Frappuccino (Grande, 16 oz)
A blended frozen coffee drink with milk, ice, flavored syrup, and whipped cream.
Historical prices
| Year | Price | vs. Prior |
|---|---|---|
| 1995 | $2.75 | — |
| 2000 | $3.25 | +18.18% over 5yrs |
| 2010 | $4.25 | +30.77% over 10yrs |
| 2019 | $4.75 | +11.76% over 9yrs |
| 2025 | $5.95 | +25.26% over 6yrs |
Price growth vs. CPI inflation
Starbucks acquired the Frappuccino concept from The Coffee Connection in 1994 and launched it nationally in 1995. Despite being the highest-margin drink category, Frappuccino pricing has tracked inflation remarkably closely over 30 years.
Pumpkin Spice Latte (Grande)
Espresso, pumpkin spice sauce, steamed milk, and signature spices, topped with whipped cream.
Historical prices
| Year | Price | vs. Prior |
|---|---|---|
| 2003 | $3.25 | — |
| 2010 | $4.25 | +30.77% over 7yrs |
| 2019 | $5.25 | +23.53% over 9yrs |
| 2025 | $6.75 | +28.57% over 6yrs |
Price growth vs. CPI inflation
The PSL launched in fall 2003 and has been on the seasonal menu every year since, making it one of the longest-running limited-time offers in QSR history. It generates hundreds of millions in annual sales, and its pricing has outpaced general inflation.
Internal Links
More Ways to Compare Starbucks
Jump from the Starbucks profile into the live menu table, map view, comparison tools, and related value analysis.
Core tools
Related analysis