Why does Starbucks rely on licenses for most of its international operation?

Answer 1

Starbucks relies on licensing for most of its international operations to mitigate risks and adapt more effectively to local markets. By partnering with local licensees, Starbucks can leverage their market knowledge, cultural understanding, and established distribution networks, which helps in navigating regulatory environments and consumer preferences. This approach allows Starbucks to expand its global footprint more rapidly while minimizing the capital investment and operational complexities associated with direct ownership. Ultimately, licensing facilitates a more agile and responsive business model in diverse international markets.