How Star­bucks is brewing new data driven busi­ness models


Since the first coffee house was opened in 1555, there has been a global market for coffee shops and signi­fi­cant busi­ness oppor­tu­nities. To ensure sustai­ned growth, local coffee shops now extend their offe­ring to a chain across various cities and coun­tries. A signi­fi­cant player in recent years is Starbucks.

Between 2001 and 2007, the number of stores grew from 4,000 to 16,000 stores while still main­tai­ning a healthy profit margin. This use case shows one key element that has helped them stay ahead of compe­ti­tion all over the world by lever­aging on open data.

Data­sets used

A key source of inter­nal data was the Star­bucks mobile app. Howe­ver, this inter­nal data­set alone was not suffi­ci­ent to gain insights and make criti­cal decisi­ons. Besi­des their focus (new custo­mers) did not have the mobile app. Through a third-party company, open data on loca­tion of train and bus tops, popu­la­tion density in speci­fic areas and city demo­gra­phics was analy­sed and corre­la­ted with their inter­nal data sets. With this infor­ma­tion, Star­bucks is now able to deter­mine loca­tion for new coffee shops that will be profi­ta­ble. They also use meteo­ro­lo­gi­cal data in plan­ning speci­fic products to promote at diffe­rent times of the year.

Adva­neo Data Marketplace

The scen­a­rio descri­bed above invol­ved signi­fi­cant resour­ces in plan­ning, data gathe­ring, sorting and clea­ning before apply­ing machine lear­ning algo­rithms for predic­tion. Not all local coffee shops have the resour­ces to employ dedi­ca­ted teams for this task. The Adva­neo market place provi­des a solution.

Easy to Use: Rather than spend months gathe­ring and sorting through nume­rous data sets, compa­nies now have the oppor­tu­nity to get rele­vant data in a few clicks. These have been care­fully cate­go­ri­sed with veri­fied end points to cut out unne­cessary time spent in search that lead to dead ends.

Privacy and Secu­rity: All data­set provi­ded on the market place have been checked for permis­si­ons and licen­ses. With one click you can check the permis­sion requi­red and limi­ta­ti­ons when using the dataset.

Corre­la­tion: We under­stand the need to corre­late multi­ple data sets. Adva­neo has cate­go­ri­sed all the data set such that a simple keyword search or clicking data­set tags will show other data­sets you might not have consi­de­red but may be rele­vant in solving your current challenges.


The scen­a­rio descri­bed above is not limi­ted to coffee shops as all major grocery chains now employ simi­lar models having inhouse data science teams. Lever­aging on the open data provi­ded on the Adva­neo market­place will lead to signi­fi­cant reduc­tion in resour­ces needed to have an in-house data science depart­ment as well as lead to new busi­ness insights in a shor­ter time scale.

Use of cookies
In order to optimize the website and to improve it continuously, ADVANEO uses cookies. By continuing to use the website, you agree to the use of cookies. Further information can be found in our privacy policy declaration.
-Click here to unsubscribe.