Is Starbucks Secretly A Bank?

[Prince.Skeletor]

Is it a bank?
It may be one of the biggest banks in America.

Here’s why:

The Starbucks card can be topped up with cash to spend at any Starbucks, giving users rewards for their purchases.

The total balance on Starbucks cards is over $1.6 billion.

In other words, customers are lending Starbucks $1.6 billion in cash…at 0% interest!
To put that in perspective, 85% of US banks have less than $1b in total assets.

Starbucks isn’t regulated as a bank because users can’t withdraw their balance as cash.
This means they aren’t effected by various regulations, including the need to hold a large cash balance in case of mass withdrawals.

They are free to spend this loan on whatever they want, such as opening 350+ new stores per quarter.

To top it off, the Starbucks app is the second most used mobile point-of-sale payment platform in the US, sitting between Apple Pay and Google Pay.

Thoughts?

 

[TL15]

They aren’t a bank because they don’t have the transactional relationship with customers.

If anything they are an insanely large cash reserve, but even that isn’t true because behind the 1.6 Billion in cash “loaned” or “lended” by customers, they are actually in debt 1.6 Billion in the value of owed liabilities (coffee or products etc.) to those customers.

IE: I place my money in the bank and the bank does what they want with it and I can withdraw it. They don’t necessarily owe me any asset for putting it in, and are able to invest it so long as they have a percentage to return if I ever want to pull it out. If I invest in a Starbucks card, they have to provide me with that coffee which has overhead and expenses attached.



but this is still a very unique look at their model and assets

 

[KyokushinKarateMan]

Thoughts?

Yeah I got some thoughts. I think you copied that somewhere, and then pasted it here on the Coli

 

[Bubba T]

Could you link the article you got this from?

 

[⠀⠀⠀]

i got tired of re-uppng $25 amount on starbucks card on the app. i'm glad you can just use the app now with a credit card assigned to pay direct even though you get less stars.

 

[⠀X ⠀]

I’m so glad I kicked that Starbucks habit...

 

[Batsute]

It’s a contra asset for them and goes against their balance sheet.

 

[King]

They aren’t a bank because they don’t have the transactional relationship with customers.

If anything they are an insanely large cash reserve, but even that isn’t true because behind the 1.6 Billion in cash “loaned” or “lended” by customers, they are actually in debt 1.6 Billion in the value of owed liabilities (coffee or products etc.) to those customers.

IE: I place my money in the bank and the bank does what they want with it and I can withdraw it. They don’t necessarily owe me any asset for putting it in, and are able to invest it so long as they have a percentage to return if I ever want to pull it out. If I invest in a Starbucks card, they have to provide me with that coffee which has overhead and expenses attached.



but this is still a very unique look at their model and assets

Sohh essentially you saying they diversified them bonds correct

 

[50CentStan]

Howard Schultz won

 

[Dak Pickscott]

imagine paying $10 for a cup of coffee when i can brew my own

 

[Double Burger With Cheese]

imagine paying $10 for a cup of coffee when i can brew my own

It's like $2.00 and some change if you just get straight black coffee without none of that fancy girl shyt. But yeah, still much cheaper if you brew it at home

 

[tuckgod]

Very interesting thread

 

[tuckgod]

It's like $2.00 and some change if you just get straight black coffee without none of that fancy girl shyt. But yeah, still much cheaper if you brew it at home

I pay $8 to Panera Bread a month and get pretty much unlimited coffee (you have to wait 2 hours between orders).

I grab a large black iced coffee everyday and I’m straight.

 

[Umoja]

No


They're capitalising on people who are effectively ordering their coffee in advance. In other words they've exchanged a product for consideration.

 

[Double Burger With Cheese]

I pay $8 to Panera Bread a month and get pretty much unlimited coffee (you have to wait 2 hours between orders).

I grab a large black iced coffee everyday and I’m straight.

Yeah, thats a good ass deal right there. I only been drinking coffee for about 2-3 years, but I'm about to switch back to tea cause coffee too addictive. It got way more caffeine. I be drinking that shyt out of habit more than anything