Contents
Starbucks
Introduction:
Starbucks Corporation is an American multinational coffee house and roaster chain
headquartered in Seattle, Washington. The largest coffee shop chain in the world. As of
November 2021, the company has 33,833 stores in 80 countries, including 15,444 stores in the
The United States. Of the US-based Starbucks stores, more than 8,900 are operated by the company
and the rest are licensed. From 2021 to 2022, voting for the Starbucks Trade Union
was successful in several Starbucks locations such as Seattle, Buffalo,
Rochester, Isaka, Kansas City, and Manhattan. The rise of the second wave of coffee
culture was generally due to Starbucks’ achievements, which brought about a wider variety of
coffee experiences. Starbucks offers hot and cold drinks, coffee beans, finely ground instant
coffee, espresso, cafe latte, full and lose teas, juices, frappuccinos, pastries, and snacks.
Some offers are seasonal or specific to the location of the store. Free Wi-Fi Internet access is
available in most places in some countries.
Company Overview:
Starbucks was founded in 1971 by Jerry Baldwin, Zeb Siegel, and Gordon Baker at Pike
Place Market in Seattle. In the early 1980s, they sold the company to Howard Schultz. After
traveling to Milan, Italy, Howard Schultz decided to transform its coffee bean business into a
coffee shop specializing in espresso-based beverages. As Chief Executive Officer from 1986 to
2000, Schultz’s first tenure led to the aggressive expansion of the franchise, first in Seattle
and then on the west coast of the United States. Schultz has been running the company for
five years, positioning Starbucks as a big player in fair trade coffee and taking over by
Ironsmith has grown sales to $ 5 billion. Jim Donald was Chief Executive Officer from 2005
to 2008 and organized extensive profit management. Schultz returned as Chief Executive
Officer during the 2007-08 financial crisis, then expanded the company’s market
share, expanded its products, and rebranded around corporate social responsibility over the
next decade. I organized it. Current CEO Kevin Johnson took over Schultz in 2017. In March
In 2022, Starbucks announced that Schultz would return as CEO in April 2022.
Starbucks, a worldwide network:
In addition to drinks and food, many stores carry official Starbucks merchandise such
as cups, mugs, scoops, and coffee presses. There are also several carefully selected locations for
Starbucks Evening, serves beer, wine, and appetizers. Starbucks brand coffee,
ice cream, and bottled cold coffee beverages are sold in grocery stores in the United States and
other countries. In 2010, the company launched a Starbucks Reserve program for single-origin coffee and fine coffee shops. By the end of 2017, we planned to open
1,000 reserve coffee shops. As part of its program, Starbucks operates six roasteries with
tasting rooms and 43 coffee bars. The latest Roastery, which opened in Chicago’s Magnificent
Mile in November 2019, is the largest Starbucks location in the world. The company has
been the subject of several controversies related to its business practices.
Conversely, the franchise has achieved significant brand loyalty, market share,
and corporate value. The company is ranked 114th on the Fortune 500 and 288th on the Forbes
Global 2000.
History:
The 1970s:
Starbucks originally opened on March 30, 1971, in Seattle, Washington. It was founded by
business partners Jerry Baldwin, Zeb Siegel, and Gordon Barker, who first met as students at the
The University of San Francisco. The trio was urged by coffee roasting entrepreneur Alfred Peet to
sell high-quality coffee beans and equipment. Bowker believed that his business partner, Terry
Heckler was powerful for words that started with “st,” so the founders should create a list of
words that start with “st” to find the brand name. I remember what I urged. They chose the
Cascade Range mining town of Starbucks, from which the group remembered the name of the
chief officer of the book Moby Dick, Starbucks. “Moby Dick had nothing to do with Starbucks,”
Bowker said. “It was a coincidence that the sound seemed to make sense.”
The first Starbucks
store was on 2000 Western Avenue in Seattle from 1971 to 1976. After that, the cafe
was moved to Pike Place in 1912. During this time, Starbucks stores only sold coffee beans, not
drinks. Starbucks purchased green coffee beans from Peet’s Coffee & Tea for the first two
years. In 1973, Alfred Peet stopped supplying Starbucks and helped train the new roast
master Jim Reynolds.
The 1980s:
In 1984, the former owner of Starbucks, led by Jerry Baldwin, bought Peet’s Coffee. By 1986,
the company had six stores in Seattle and had just begun selling espresso coffee. In 1987,
the former owner sold the Starbucks chain to former marketing director Howard Schultz.
Howard Schultz rebranded the Il Giornale coffee shop to Starbucks and soon began to
expand its business. In 1987, Starbucks also opened its first locations on the waterfront
stations in Vancouver, British Columbia, and Chicago, Illinois, on the outskirts of Seattle. By
1989, there were 46 Starbucks stores in the Pacific Northwest and Midwest, and the
company roasted over 2,000,000 pounds (907,185 kg) of coffee annually.
The 1990s:
As of the June 1992 IPO, Starbucks had 140 stores, and sales increased from $ 1.3 million
in 1987 to $ 73.5 million. The market value of the company at that time was $ 271 million. A
12% stake in the sold company provided the company with a profit of approximately $
25 million and was able to double the number of stores over the next two years. By September
1992, Starbucks shares had risen 70%. In 1994, Starbucks acquired The Coffee
Connection, which acquired the rights to use, manufacture, sell, and sell
“Frappuccino” beverages. The beverage was launched under the Starbucks name in 1995, and
by 2012 Starbucks Frappuccino had annual sales of over $ 2 billion. In 1999, Starbucks
experimented with restaurants in the San Francisco Bay Area through a restaurant chain
called CIRCADIAN. After people learned that these restaurants were owned by Starbucks,
Starbucks turned the restaurant into a Starbucks coffee shop.
The 2000s:
In April 2003, Starbucks acquired Seattle’s Best Coffee and Trefazione Italy from AFC Enterprises
for $ 72 million. According to the Seattle Post-Intelligence, the deal brought Starbucks to just
150 stores, but the wholesale business was more important. Howard Behar was President of
Starbucks North America from 2005 to 2007. In September 2006, rival Diedrich Coffee
announced that it would sell most of its retail business to Starbucks, including most
of Oregon’s Coffee People, thereby intensifying the coffee war in the
region. Starbucks has converted the location of Diedrich Coffee and Coffee People to Starbucks.
The Coffee People location at Portland International Airport has been excluded from the sale.
In early 2008, Starbucks launched Starbucks Idea, a community website designed to collect
suggestions and feedback from customers. Other users can comment on the
suggestion and vote. “All my Starbucks seem sweet and light so far, I don’t think this can be
done without a lot of censorship,” said journalist Jack Schofield. In March 2008, Starbucks
acquired a coffee equipment company that is a manufacturer of clover brewing systems. We
have begun testing “freshly squeezed” coffee systems at multiple
Starbucks locations in Seattle,
California, New York, and Boston. During the Great Depression of July 2008, Starbucks
announced that it would close 600 unprofitable retail stores and reduce its expansion plans in
the United States amid growing economic uncertainty. On July 29, 2008, Starbucks
also eliminated nearly 1,000 non-retail jobs as part of a bid to revitalize the brand and increase
revenue.
Of the new cuts, 550 positions were layoffs and the rest were vacant. In addition, in July 2008,
Starbucks announced that it would close 61 of its 84 Australian stores the following
month. “Starbucks didn’t really understand Australian cafe culture,” said Nick Wailes, a strategic
management expert at the University of Sydney. CEO Howard Schultz also announced that
he has received board approval to make the reduction. Overall, from February 2008 to January
2009, Starbucks abandoned an estimated 18,400 jobs in the United States and began closing
977 stores worldwide. In August 2009, Ahold announced the closure and rebranding of 43
Starbucks kiosks are licensed for US-based Stop & Shop and Giant supermarkets.
The 2010s:
In August 2012, Starbucks, the largest in the United States, opened at the Ferguson Center at
the University of Alabama. On June 25, 2013, Starbucks began posting calorie counts on its
beverage and pastry menus at all stores in the United States. In July 2013, more than 10% of in-store purchases were made on customers’ mobile devices via the Starbucks app. The
company re-used the mobile platform when it launched the “Tweet-a-Coffee” promotion in
October 2013. On this occasion, Twitter also participated, and by entering both “@
sweet coffee” and the handle of the friend in one tweet, I was able to purchase a gift certificate
of $ 5 for my friend. Research firm Keyhole monitored the progress of the campaign. So far,
27,000 people have participated and $ 180,000 has been purchased, according to a media
article in December 2013. In January 2014, Starbucks management moved from a globally
unique brand to a focus on locally relevant design for each store as part of a compact direction
change. In May 2014, Starbucks announced a sustained loss in the
Australian market and all
remaining operations were sold to Wizards Group. In July 2017, Starbucks acquired the
remaining 50% stake in Chinese companies from its long-standing joint venture partners Uni-President Enterprises (UPEC) and President Chain Store Corporation (PCSC) for $ 1.3 billion. On
On March 21, 2018, Starbucks announced that it is considering using blockchain technology
with the idea of connecting coffee drinkers with coffee farmers who ultimately have access
to new economic opportunities. The pilot program was set up to develop new ways to track
bean-to-cup journeys, starting with farmers in Costa Rica, Colombia, and Rwanda. In 2019, at
the Microsoft Build conference, coffee companies officially
announced the “Bean to Cup” program that leverages Microsoft’s Azure-based
blockchain services.
The 2020s:
On March 20, 2020, Starbucks closed all cafe-only stores in the United States for two weeks due
to the COVID-19 pandemic. During this period, you should only operate drive-through and
delivery-only services. According to company officials, all workers should be paid for the next
30 days, regardless of whether they went to work or were at home. [62] With the blockade of
COVID-19, Starbucks saw a 10% decrease in overall sales and a 50% decrease in overall sales in
China, where quarantine measures are particularly strict. In May 2020, the company demanded
that landlords reduce rent due to a drop in sales. In June 2020, during the COVID-19 outbreak in the United States, the company announced that it would close 400 locations in
the United States / Canada region over the next 18 months as it transitions from the
coffee shop concept to the current concept. did. Convenience-driven format with drive-through
and curve-side pickups. Starbucks said it will open 300 stores that focus primarily
on takeaway and pickups. The new store will work with the Starbucks mobile app to allow
customers to prepay their orders prior to arrival to receive their orders.
The layout of
some branches will also change to another counter to receive mobile orders. In December
2020, Starbucks announced plans to increase the number of stores from approximately
33,000 to approximately 55,000 by 2030.
Products:
Low-calorie and sugar-free products:
In January 2008, Starbucks launched a “thin” beverage line, offering a low-calorie, sugar-free version of the beverages it offers. It uses skim milk and can be sweetened with natural
sweeteners (such as raw sugar). Agave nectar syrup or honey), artificial
sweeteners (Sweet’N Low, Splenda, Equal, etc.), or one of the company’s sugar-free syrup
flavors.
Non-dairy milk offerings:
In 1997, Starbucks first introduced soymilk in US stores to provide non-dairy milk. In 2007,
Starbucks stopped using milk from rBGH-treated cows. In June 2009, the company began selling
high-fructose corn syrup and salads, and baked goods that do not contain artificial ingredients.
This move should attract health and cost-sensitive consumers and prices. In 2015, Starbucks
began offering coconut milk. In 2016, we started offering almond milk. In January
, In 2020, oat milk became available nationwide. The company has also partnered with Nestlé SA
to offer non-dairy milk jugs at retail stores. In an interview in 2020, CEO Kevin Johnson
said dairy alternatives could make a significant contribution to reducing carbon
emissions. These efforts have urged vegans, environmentalists, lactose-intolerant people, and
others to urge companies to abolish the premium for beverages made from non-lactose milk.
PETA encouraged sit-ins at Starbucks locations and noted that they bought Starbucks shares
and felt they were an injustice. A Starbucks Canada spokesman told ET Canada that there would
be an additional charge for customizing additional flavors, non-dairy beverages, and additional
espresso. In December 2020, Starbucks announced that it would offer oat milk in all stores
in the United States by the spring of 2021.
Instant coffee and coffee capsules:
In March 2009, Starbucks announced a line of instant coffee packages called VIA “Ready Brew”.
It was first introduced in New York City and subsequently tested in Seattle, Chicago, and
London. The first two VIA flavors include Italian roast and Colombia. Launched in the United
In the states and Canada in October 2009, Starbucks stores promote their products with instant roast
and fresh roast blinds “Taste Challenge.” Between instant coffee and freshly brewed coffee.
Financial analysts speculated that the introduction of instant coffee would reduce the value of
Starbucks’ own brand.
Alcoholic Drinks:
In 2010, Starbucks began selling alcoholic beverages in some stores across the United States. In
In August 2014, Starbucks opened its first store in Williamsburg, Brooklyn. This store was one of
the 30 places that served beer and wine at the time. In 2016, it announced that it would also
offer alcohol in three locations in Toronto, Ontario, including high-end primopiats such
as bacon-wrapped dates, macaroni and cheese, and truffles. Starbucks ensures that the location
chosen to serve alcohol accommodates the community and allows for additional seating and
storage.
Fruit juices, fruit beverages, and sodas:
On November 10, 2011, Starbucks acquired the juice company Evolution Fresh for $ 30 million
in cash, opened a juice bar chain around mid-2012, and planned to expand into the area
where Jamba was betting. His first store opened in San Bernardino, California, and plans for a
San Francisco stores were scheduled to begin in early 2013. In March 2012, Starbucks began
selling Starbucks ice soft drinks containing green coffee extract. The drink is fruit flavored
and contains caffeine, but is advertised as having no coffee flavor. The Starbucks green coffee
extraction process involves soaking the beans in water. In June 2014, Starbucks
began testing its own sodium carbonate called “Fizzio.” A special machine was needed to make
the drink.
Energy drinks:
In January 2022, Starbucks launched a line of canned energy drinks called “Baya.” The drink
contains coffee fruit caffeine.
Barrel-aged coffee:
In March 2017, Starbucks announced the launch of two new limited-edition
specialty beverages made from whiskey barrel-aged beans at Seattle’s Roastery.
Starbucks barrel-aged coffee is sold in small lots of unroasted Starbucks Reserve Sulawesi beans
and is manually filled into Washington state whiskey barrels.
Corporate governance and identity:
Kevin Johnson, President, and Chief Operating Officer from 2015 to 2018, has been
Starbucks Chief Executive Officer since April 2017. Myron E. Ullman became chairman
of the company in June 2018. Both Johnson and Ulman have taken over Howard Schultz,
who held both positions from 2008 to 2017. Olin C. Smith was President and Chief Executive
Officer of Starbucks from 2001 to 2005. Jim Donald then became Chief Executive Officer until
2008. Since 2018, Schultz has been the company’s first Honorary Chairman.
Analysts have long felt that the company’s corporate governance must decide how to deal with
higher material prices and intensifying competition with lower-priced fast food chains, including
McDonald’s and Dunkin Donuts. In October 2015, Starbucks hired its first Chief Technology
Officer, Gerri Martin-Flickinger, led the technical team. Starbucks maintains control
of the production process, keeps in touch with farmers to secure beans, roasts their
beans, and controls distribution to all retailers. In addition, Starbucks coffee and farmer fair
practices require the supplier to inform Starbucks which portion of the wholesale price paid will
reach the farmer.
Logo:
In 2006, Starbucks spokeswoman Valerie O’Neill stated that the logo was an image
of “mermaids on both sides or sirens, as is known in Greek mythology.” The logo has been
significantly streamlined over the years. In the first version, the Starbucks siren was topless and
had a fully visible double fishtail. The image also had a grainy visual texture and was
compared to Melusine. According to Starbucks, this image is based on 16th-century woodblock
prints, but other scholars say it seems to be based on 15th-century woodblock prints of Juan
Eduardo Pilot. In the second version, used from 1987 to 1992, her breasts were
covered with flowing hair, but her navel was still visible. The fishtail is slightly shorter and
the base color has changed from brown to green. This is in favor of the University of
San Francisco’s three founders’ alma mater. In the third version, used between 1992 and 2011,
her navel and chest are completely invisible, leaving only the remains of the fishtail. The
original “woodblock print” logo has been moved to the Starbucks headquarters in Seattle.
In early September 2006, and early 2008, Starbucks temporarily reintroduced the original
brown logo on paper hot drink cups. Starbucks states that this represents the company’s Pacific
Northwest heritage was done to celebrate its 35th anniversary. The vintage logo has
caused some controversy, partly because of the siren’s bare chest, but the temporary
switch has received little media attention. Starbucks faced similar criticism when it
reintroduced the vintage logo in 2006. The logo was changed when Starbucks entered the Saudi
Arabian market in 2000, removing the siren and leaving only her crown. This is reported
in the Pulitzer Prize-winning column by Colbert I. King of the Washington Post in 2002. The
company announced three months later that it would use the international logo in Saudi
Arabia. In January 2011, Starbucks announced a minor change to the company logo, removing
the Starbucks wordmark around the siren and enlarging the siren’s image to turn green