Starbucks pays more for employee health insurance than it pays for coffee!
Starbucks is the go-to place for coffee. Their shops have traveled from Seattle and pretty much taken over the world with their tall, grande and venti beverages. With the amount of coffee they brew, they certainly have to buy a lot of it. And that's true, but it turns out coffee isn't their main expense.
When Starbucks' business modeled spiraled out of control in recent years, they began opening up too many stores too quickly. In order to get them back on track, CEO Howard Schulz had to cut major costs--$600 million worth of cuts.
He refused to cut employee health insurance though. Starbucks spends $300 million annually on health insurance for their employees. This huge amount is more than they even spend on coffee.