Which Is a Greater Expense for Starbucks: Employee Health Insurance or Coffee Beans?

Employee health insurance is a greater expense for Starbucks than coffee beans, even though the company buys more than 270 million pounds (more than 122 million kg) of coffee each year. The company spends about $300 million US Dollars (USD) on health insurance for its U.S. employees. Every employee who works at least 20 hours per week is offered a health insurance package, which about 64 percent of them take. As of 2010, the company had more than 130,000 employees.

More facts about Starbucks:

  • Starbucks pays double the regular commodity price of coffee to many of its suppliers. Commodity prices for coffee as of 2012 averaged about $0.98 USD to $2.50 USD per pound (0.45 kg), depending on the type of coffee.

  • The company also gives loans to farmers with whom it works. In 2010, the company made loan commitments in excess of $14.5 million USD.

  • Starbucks buys more than 14 million pounds (6.4 million kg) of certified organic coffee beans each year.

More Info: www.starbucks.com

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