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What key innovation did Schultz introduce that expanded Starbucks’ product offerings?
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He introduced lattes, cappuccinos, and other coffee beverages.
How did Starbucks adapt its product offerings for international markets?
By adjusting products to local tastes while maintaining brand integrity, such as offering green tea lattes in China.
What inspired Howard Schultz to transform Starbucks' business model after his trip to Italy?
He was inspired by Italy's coffee culture, particularly the communal aspect and espresso bars.
How did Howard Schultz acquire Starbucks, and what was the cost?
He bought Starbucks in 1987 for $3.8 million.
What was Starbucks' initial focus when it first started?
Selling roasted coffee beans, not beverages.
What is the concept of the 'third place' in Starbucks' business strategy?
A 'third place' is a comfortable, social space away from home and work where customers can relax.
What challenges did Starbucks face with the introduction of mobile order and pay?
Maintaining the ‘third place’ experience amidst increased operational efficiency demands.
Why does Starbucks avoid franchising its stores?
To maintain control over quality and company culture.
How did Alfred Peet influence the founding of Starbucks?
The founders were inspired by Peet's Coffee and initially sold Peet's coffee in bags branded as Starbucks.
What unique benefits did Schultz implement to foster employee loyalty?
Comprehensive health insurance for part-time employees, stock options (Bean Stock), and college tuition.
How did the 2008 financial crisis impact Starbucks, and what steps did Schultz take upon returning as CEO?
Starbucks faced existential threats. Schultz closed underperforming stores, refocused on core values and products, and suspended stock buybacks to invest in employees.
In what year did Howard Schultz open the first Starbucks coffee bar, and where was it located?
1984, in Seattle.
What are the major recent challenges Starbucks has had to navigate?
Adapting to the COVID-19 pandemic, managing the demands of mobile orders, and balancing efficiency with maintaining the ‘third place’ experience.
Who were the original founders of Starbucks in 1971?
Jerry Baldwin, Zev Siegl, and Gordon Bowker
What significant product did Starbucks develop from a Coffee Connection trademark acquisition?
Frappuccino.
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