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