How much money does Barnes & Noble pay to Starbucks for the licensing?
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Barnes & Noble is selling Starbucks coffee, but people can't pay through their Starbucks Rewards Cards. They claim that they are B&N Cafe serving Starbucks Coffee. B&N made this contract really in favor of its own benefits, so I guess the licensing fee is really high in this case?
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Answer:
Starbucks usually charges between $15k-$30k as a license fee. They will also charge an ongoing royalty/license fee of between 8%-15% of revenues. In addition the retailer like barnes and nobles will be required to buy beans from Starbucks. Sometimes retailers can negotiate market + some factor for bean prices.
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Other answers
B&N used to work with other companies besides Starbucks, usually by having a common wall with a coffee cafe. Diedrich Coffee was common in Orange County, California. During the B&N realignment, they opened up their own B&N Cafes inside the store, and feature many of the same products as Starbucks, including prepared coffee beverages. It's not that they "claim" they are a B&N Cafe, they ARE a B&N Cafe. They didn't make a contract "in favor of its own benefits" so much as it made a business decision to lure customers by offering the types of beverages that customers liked. I, personally, would have preferred Diedrich over Starbucks, but that's only because Diedrich's has the ultimate coffee shake. Starbucks is a brand, and the licensing isn't a fee, per se. Just like Coke or Pepsi are sold in fast food restaurants, Starbucks has to remain competitive with other coffee beverages or they'll lose their spot in B&N.
Shawn Bell
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