Is Starbucks Secretly A Bank?

[TheBigBopper]

If you look at it that way, most Fortune 500 companies are banks. Google, for instance, has so much cash on hand that they have a trading desk like many hedge funds do, buying bonds so they can earn additional yield on their money.

 

[MJ Truth]

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

Its $2.65 for a small coffee here.

 

[ThaBronxBully]

This Reminds Me Of The “McDonalds Isn’t A Restaurant It’s A Real Estate Company” Theory lol


“McDonald’s makes much of its revenue by buying the physical properties and then leasing them to franchisees, often at large mark-ups.”

 

[bnew]

 

[Higher Tech]

Having a bunch of cash doesn't make them a bank.

 

[KING WILL]

This sounds like my limited understanding of what fintech is.


Pretty much every top company will be in fintech in a BIG way very soon.

 

[Boogie]

Sound like some bs that be on them fake financial guru pages on Instagram. I seen one that said McDonald’s wasn’t a restaurant business but a real estate business

 

[tuckgod]

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

Yeah facts

 

[beenz]

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?

I saw a video on this exact thing a few weeks ago. But couldn't the same be said of any business who has mad gift cards out in these streets?

 

[beenz]

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 rarely drink coffee, but keep it on Deck at home just in case I need it. A thing of Starbucks k-cups last me forever and that comes out to some 75 cents per coffee at the crib.

 

[Umoja]

Sound like some bs that be on them fake financial guru pages on Instagram. I seen one that said McDonald’s wasn’t a restaurant business but a real estate business

There is truth in the McDonald's statement.

 

[Prince.Skeletor]

This Reminds Me Of The “McDonalds Isn’t A Restaurant It’s A Real Estate Company” Theory lol


“McDonald’s makes much of its revenue by buying the physical properties and then leasing them to franchisees, often at large mark-ups.”

Knowing that is nuts, crazy fukkin crazy

 

[Field Marshall Bradley]

If I invest in a Starbucks card, they have to provide me with that coffee which has overhead and expenses attached.

Does that 1.6 billion get used in it's entirety by gift card holders.... Do these gift cards expire so to speak

 

[⠀X ⠀]

Sound like some bs that be on them fake financial guru pages on Instagram. I seen one that said McDonald’s wasn’t a restaurant business but a real estate business

If they’re leasing land to the franchisees, then they’re in the real estate business. Think about it. Every McDonalds you’ve been to, is sitting on one of the best plots in town.

 

[Prince.Skeletor]

If they’re leasing land to the franchisees, then they’re in the real estate business. Think about it. Every McDonalds you’ve been to, is sitting on one of the best plots in town.

Exactly
If it's a real estate company then it's a real estate company.
They buy land, build a restaurant, and then resell it at profit.
After all, rent in Times Square isn’t cheap, but a Big Mac is.

The founder of McDonalds said: “You don’t build an empire off a 1.4% cut of a 15 cent hamburger, you build it by owning the land on which that burger is cooked.”

They got a whopping $53 Billion (2020) real estate business.

In conclusion, even if people stop eating burgers tomorrow, McDonald’s is not going down, supported by its massive real estate empire. That’s how a sustainable business model is built..

Lessons learned?

1. Try to find a growth model with minimum liabilities. In this case McDonald’s did not have the liability to pay rent yet it became one of the largest fast-food chain
2. As an entrepreneur, it’s important you create an alternate source of income if your original business goes down
3. Focus on building real assets that can provide strength if things do not work in your favor.