How do you go about working out the revenue of a Starbucks store, from coffee only?

Market sizing Market Sizing Beginner Level Revenue analysis
Neue Antwort am 29. Feb. 2020
4 Antworten
5,6 T. Views
Anonym A fragte am 14. Feb. 2020

Übersicht der Antworten

Upvotes
  • Upvotes
  • Datum aufsteigend
  • Datum absteigend
Beste Antwort
Luca
Experte
Content Creator
antwortete am 29. Feb. 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello,

I would use the following approach:

  1. Identify the bottleneck of the service (e.g. number of seats or cashiers)
  2. Divide the day into different time slot
  3. Make an assumption of the occupancy for each time slot
  4. Calculate the volume of customers
  5. Revenues = Customers x average expenditure

Be careful to make clear the boundary conditions of the case (Are you talking of a standard working day or weekend?Which time of the year?Do we do any delivery service?)

Best,
Luca

War diese Antwort hilfreich?
Antonello
Experte
Content Creator
antwortete am 16. Feb. 2020
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi,
1. calculate traffic per day in the store (use the bottleneck of seats or cashier)
2. percentage of customers that order coffee
3. average selling price per coffee

Best,
Antonello

War diese Antwort hilfreich?
Clara
Experte
Content Creator
antwortete am 14. Feb. 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Classic market sizing question, all comes down to P x Q.

  • Q (i.e., quantity of cups sold):
    • Estimate number of hours in which the store is open
    • Calculate the traffic in each of the hours (doing it in groups, such as high, medium and low traffic).
  • P (i.e., average price): Given the classic 3 sizes, estimate in your currency an average price per coffee cup.

Hope it helps!

Cheers,

Clara

War diese Antwort hilfreich?
Vlad
Experte
antwortete am 14. Feb. 2020
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

You should assume the traffic (av wait time in Starbucks) at different times of the day.

Make an assumption of how many of them drink coffee and how many cups

That's it

Best

War diese Antwort hilfreich?

Luca

Content Creator
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
64
Meetings
3.087
Q&A Upvotes
33
Awards
5,0
19 Bewertungen
Wie wahrscheinlich ist es, dass du uns einem Freund oder Kommilitonen empfiehlst?
0
1
2
3
4
5
6
7
8
9
10
0 = Nicht wahrscheinlich
10 = Sehr wahrscheinlich