Description: Starbucks (SBUX) is slowly adding a shot of banking to its grande coffee empire. As customers pour money into its gift cards and its mobile-payment app, the Seattle-based company is booking a tidy profit simply by holding onto customers’ cash.
Date: Jan 24, 2014
Questions for Discussions:
- How does this strategy affect cash flow and other financial issues at the company?
- Are there any risks inherent in holding so much cash advances?