The Story of Starbucks

Origins

• Founded in 1971 at Seattle’s Pike Place Market by three friends.
• First store sold whole-bean coffee from Colombia, Indonesia, and Ethiopia.
• Name "Starbucks" inspired by Moby Dick; logo features a Siren.

Howard Schultz's Influence

• In 1982, Howard Schultz joined as Director of Operations and Marketing.
• Inspired by coffee culture in Milan, Italy - welcoming atmosphere, shared connections.
• Introduced café culture to Starbucks, leading to the first café latte in Seattle.

Expansion and Cultural Formation

• In 1987, Howard and investors acquired Starbucks; merged with Il Giornale.
• Starbucks expanded outside Puget Sound to Chicago and Vancouver.
• First mission statement established, emphasizing uncompromising principles.
• Uncommon practice of offering full health benefits to part-time employees.
• Employees became partners through Bean Stock equity program.

Growth and Public Offering

• By 1992, Starbucks had expanded significantly; coffee served on airlines and in airports.
• Increased visibility with storefronts in Los Angeles and New York.
• Enhanced customer experience with comfy seating and live music, starting with Blue Note Blend CDs.

International Expansion

• 1996 marked the 25th anniversary; expanded to Japan and later Asia Pacific and Europe.
• Continued growth led to stores opening daily worldwide.

Innovation and Challenges

• Introduced popular products like Frappuccino and drive-thru service.
• Attempted social initiatives like the CUP Fund and community gardens.
• Faced challenges in 2007 with rapid growth leading to a decline in customer experience.

Rejuvenation and Core Values

• Partners refocused on core values and customer connection.
• New mission: "To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time."
• Emphasized inclusion, warmth, and community reflection in stores.
• Acquired Hacienda Alsacia to celebrate coffee origins and partners.

Leadership Transition

• In 2017, Howard handed over leadership to new CEO Kevin Johnson at Pike Place.
• The 1912 key symbolizes Starbucks' historical roots and future aspirations.
• Mission and values remain crucial to Starbucks' identity and future journey.