This document proposes a reusable coffee cup consortium to reduce the use of disposable paper cups. Some key points: - Starbucks uses 3 billion paper cups per year, equaling 142,045 miles of cups or 5 times around the earth. The cost is $0.06 per cup, totaling $180 million annually. - A reusable cup program would allow customers to return cups at any location for a deposit refund. This would provide convenience while reducing waste. - Financial assumptions estimate the program could save $180 million in paper cup costs while generating $1.6 billion in reusable cup deposits, yielding a gross profit of $980 million annually. - Benefits include reduced waste and costs,

2. Clean Green Coffee Cup
Consortium
Jenn Coyle, Jake Blackshear, Justin Bean

3. 3 Billion Cups / Year

4. 142,045.5
M
iles
5X

5. $0.06 * 3 Billion = $180 Million
2% of Operating Expenses

7. ?

15. Convenience

Return at any location

No washing

Get your deposit back any time

Your cup is still OK!

Cup collection services

17. Loyalty

18. Marketing

19. “Starbucks is committed to a role of
environmental leadership in all
facets of our business”
-Environmental
Mission Statement

21. Coffee
Consumption
Trash
$
Paper
Cups

22. Coffee
Consumption
Trash
$
Paper
Cups

23. Coffee
Sales
Trash
$
Paper
Cups
Coffee
Sales
$
$
Reusable
Cups
$
Cups

24. Finance Assumptions
• Paper Cup Cost $0.06 ($0.12 Wholesale)
• Green Cup Cost $1($4.50 Retail)
• 3 Billion Cups/Year
• 250 Million Cups for First Month
• 20% Replacement Rate

25. Break Even Usage
=
If Green Cup costs $1, it pays for itself in 17 uses

26. Expected Lifetime Usage
=
If Green Cup used 50 times, savings v. paper = $1.98 * 800M Green Cups = $1.584B

27. Paper Cup Cost
Savings $180 Million
Reusable Cup
Deposits $1.6 Billion
Reusable Cup
Expense ($800 Million)
Gross Profit $980 Million
Annual Profit/Loss Analysis

28. Efficiency
Money
Green
Image
Now Future
Benefits to the Starbucks Brand