Which Is a Greater Expense for Starbucks: Employee Health Insurance or Coffee Beans?
Employee health insurance is a greater expense for Starbucks than coffee beans, even though the company buys more than 270 million pounds (more than 122 million kg) of coffee each year. The company spends about $300 million US Dollars (USD) on health insurance for its U.S. employees. Every employee who works at least 20 hours per week is offered a health insurance package, which about 64 percent of them take. As of 2010, the company had more than 130,000 employees.
More facts about Starbucks:
Starbucks pays double the regular commodity price of coffee to many of its suppliers. Commodity prices for coffee as of 2012 averaged about $0.98 USD to $2.50 USD per pound (0.45 kg), depending on the type of coffee.
The company also gives loans to farmers with whom it works. In 2010, the company made loan commitments in excess of $14.5 million USD.
Starbucks buys more than 14 million pounds (6.4 million kg) of certified organic coffee beans each year.
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