A Green Coffee Cup System for Starbucks
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This document proposes a reusable coffee cup consortium to reduce the use of disposable paper cups. Some key points: - Starbucks uses 3 billion paper cups per year, equaling 142,045 miles of cups or 5 times around the earth. The cost is $0.06 per cup, totaling $180 million annually. - A reusable cup program would allow customers to return cups at any location for a deposit refund. This would provide convenience while reducing waste. - Financial assumptions estimate the program could save $180 million in paper cup costs while generating $1.6 billion in reusable cup deposits, yielding a gross profit of $980 million annually. - Benefits include reduced waste and costs,
A Green Coffee Cup System for Starbucks
- 2. Clean Green Coffee Cup Consortium Jenn Coyle, Jake Blackshear, Justin Bean
- 3. 3 Billion Cups / Year
- 5. $0.06 * 3 Billion = $180 Million 2% of Operating Expenses
- 7. ?
- 15. Convenience Return at any location No washing Get your deposit back any time Your cup is still OK! Cup collection services
- 17. Loyalty
- 18. Marketing
- 19. Starbucks is committed to a role of environmental leadership in all facets of our business -Environmental Mission Statement
- 24. 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
- 25. Break Even Usage = If Green Cup costs $1, it pays for itself in 17 uses
- 26. Expected Lifetime Usage = If Green Cup used 50 times, savings v. paper = $1.98 * 800M Green Cups = $1.584B
- 27. 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
- 28. Efficiency Money Green Image Now Future Benefits to the Starbucks Brand