Starbucks
Starbucks
Headquartered in the Starbucks Center, the company was founded in 1971 by Jerry
Baldwin, Zev Siegl, and Gordon Bowker at Seattle's Pike Place Market. During the
early 1980s, they sold the company to Howard Schultz who – after a business trip to
Milan, Italy – decided to make the coffee bean store a coffeeshop serving espresso-
based drinks. Schultz's first tenure as chief executive, from 1986 to 2000, led to
an aggressive expansion of the franchise, first in Seattle, then across the U.S.
West Coast. Despite an initial economic downturn with its expansion into the
Midwest and British Columbia, the company experienced revitalized prosperity with
its entry into California in the early 1990s through a series of highly publicized
coffee wars. Schultz was succeeded by Orin Smith who ran the company for five
years, positioning Starbucks as a large player in fair trade coffee and increasing
sales to $5 billion. Jim Donald served as chief executive from 2005 to 2008,
orchestrating a large-scale earnings expansion. Schultz returned as CEO in the
middle of the 2008 financial crisis and spent the succeeding decade growing its
market share, expanding its offerings, and reorienting itself around corporate
social responsibility. Kevin Johnson took over from Schultz in 2017, and continues
to serve as the firm's chief executive.
Many stores sell pre-packaged food items, pastries, hot and cold sandwiches, and
drinkware including mugs and tumblers. There are also several select "Starbucks
Evenings" locations which offer beer, wine, and appetizers. Starbucks-brand coffee,
ice cream, and bottled cold coffee drinks are also sold at grocery stores in the
United States and other countries. In 2010, the company began its Starbucks Reserve
program for single-origin coffees and high-end coffee shops. It planned to open
1,000 Reserve coffee shops by the end of 2017.[8] Starbucks operates six roasteries
with tasting rooms and 43 coffee bars as part of the program. The latest roastery
location opened on Chicago's Magnificent Mile in November 2019, and is the world's
largest Starbucks. The company has received significant and sustained criticism
about its business practices, corporate affairs, and role in society. Conversely,
its franchise has commanded substantial brand loyalty, market share, and company
value.
Contents
1 History
1.1 Founding
1.2 Sale and expansion
1.3 Expansion to new markets and products
1.3.1 COVID-19 pandemic response
2 Corporate governance
3 Board of directors
4 Products
4.1 Tea
4.2 Coffee quality
4.3 Starbucks Verismo
4.4 Other products
5 Locations
5.1 Current
5.2 Retail expansion
5.2.1 Shifting focus in North America
5.3 Former stores
5.4 Unbranded stores
5.5 Licensed and franchise operations
5.6 Automated locations
5.7 Facilities
6 Advertising
6.1 Logo
6.2 Partnerships
7 Parodies and infringements
8 Environmental and social policies
8.1 Environmental impact
8.1.1 Recycling
8.2 Farmer equity practices
8.3 Fair trade
8.4 Ethos water
8.5 Food bank donations
8.6 2020 plastic straw ban
9 Music, film, and television
10 See also
11 References
12 Further reading
13 External links
History
The first Starbucks store was located in Seattle at 2000 Western Avenue from 1971
to 1976. This cafe was later moved to 1912 Pike Place.[14] During this time, the
company only sold roasted whole coffee beans and did not yet brew coffee to sell.
[15] During their first year of operation, they purchased green coffee beans from
Peet's,[16] then began buying directly from growers.[citation needed]
The company once again utilized the mobile platform when it launched the "Tweet-a-
Coffee" promotion in October 2013. On this occasion, the promotion also involved
Twitter and customers were able to purchase a US$5 gift card for a friend by
entering both "@tweetacoffee" and the friend's handle in a tweet. Research firm
Keyhole monitored the progress of the campaign; a December 2013 media article
reported that 27,000 people had participated and US$180,000 of purchases had been
made to date.[25][26] As of 2018, Starbucks is ranked 132nd on the Fortune 500 list
of the largest United States corporations by revenue.[27] In July 2019, Starbucks
reported "fiscal third-quarter net income of $1.37 billion, or $1.12 per share, up
from $852.5 million, or 61 cents per share, a year earlier." The company's market
value of $110.2 billion increased by 41% in mid-2019. The earnings per share in
quarter three were recorded at 78 cents, much more than the forecast of 72 cents.
[28] The sales in 2020 influenced by COVID-19 and Starbucks reported 38% declined
in revenue from the same period in the prior year to $4.2 billion during the
quarter ended June 28 in the Americas region.[29] In December 2020, Starbucks
announced that it is planning to increase its store count to about 55,000 by 2030,
up from roughly 33,000.[30]
Howard Schultz served as chief executive from 1986 to 2000, and again from 2008 to
2017.
The first Starbucks location to open outside of North America opened in Tokyo,
Japan, in July 1996.[32] On December 4, 1997, the Philippines became the third
market to open outside of North America.[33][34] Starbucks entered the U.K. market
in 1998 with the US$83 million[35] acquisition of the then 56-outlet, UK-based
Seattle Coffee Company, re-branding all those stores as Starbucks.[35] In 1999,
Starbucks experimented with eateries in the San Francisco Bay area through a
restaurant chain called Circadia.[36] After people learned that these restaurants
were owned by Starbucks, Starbucks converted the restaurants to Starbucks cafes.
[37] Australia's first Starbucks store opened in July 2000 in Sydney.[38] After a
massive downturn in 2008, the remaining Australian Starbucks stores were purchased
in 2014, with the company planning a more restrained expansion.[39][40] In
September 2002, Starbucks opened its first store in Latin America, in Mexico City.
[41] Currently, there are more than 500 locations in Mexico.[42] In October 2002,
Starbucks established a coffee trading company in Lausanne, Switzerland to handle
purchases of green coffee.[43] All other coffee-related business continued to be
managed from Seattle.[44]
In April 2003, Starbucks completed the purchase of Seattle's Best Coffee and
Torrefazione Italia from AFC Enterprises for $72m. The deal only gained 150 stores
for Starbucks, but according to the Seattle Post-Intelligencer, the wholesale
business was more significant.[45] In September 2006, rival Diedrich Coffee
announced that it would sell most of its company-owned retail stores to Starbucks,
escalating a regional coffee war. This sale included the company-owned locations of
the Oregon-based Coffee People chain. Starbucks converted the Diedrich Coffee and
Coffee People locations to Starbucks, although the Portland International Airport
Coffee People locations were excluded from the sale.[46]
In August 2003, Starbucks opened its first store in South America in Lima, Peru.
[47] The company opened its first store in Russia in 2007, ten years after first
registering a trademark there.[48] In 2008, Starbucks purchased the manufacturer of
the Clover Brewing System. They began testing the "fresh-pressed" coffee system at
several Starbucks locations in Seattle, California, New York, and Boston.[49]
On November 14, 2012, Starbucks announced the purchase of Teavana for US$620
million in cash;[53] the deal was formally closed on December 31, 2012.[54]
Graph showing the growth in the number of Starbucks stores between 1971 and
2011[21]
On February 1, 2013, Starbucks opened its first store in Ho Chi Minh City, Vietnam,
[55][56][57] and this was followed by an announcement in late August 2013 that the
retailer would be opening its inaugural store in Colombia. The Colombian
announcement was delivered at a press conference in Bogota, where the company's CEO
explained, "Starbucks has always admired and respected Colombia's distinguished
coffee tradition."[58] In May 2014, the Starbucks operations in South Korea
launched a mobile ordering system named Siren Order, which is accessible through a
local version of Starbucks smartphone application.[59][60] In the U.S. Starbucks
later launched a similar system named Mobile Order & Pay, which launched in
Portland, Oregon in December 2015.[61] The service has since expanded nationwide,
and in late March 2018, the company opened the system (previously available to
Starbucks Rewards members only) to all customers.[62][63] In August 2014, Starbucks
opened their first store in Williamsburg, Brooklyn, one of 30 Starbucks stores to
offer beer and wine.[64]
In September 2014, it was revealed that Starbucks would acquire the remaining 60.5
percent stake in Starbuck Coffee Japan that it does not already own, at a price of
$913.5 million.[65] In August 2015, Starbucks announced its intention to enter
Cambodia, its 16th market in the China/Asia Pacific region. The first location was
scheduled to open in the capital city of Phnom Penh by the end of 2015.[66]
In February 2016, Starbucks announced that it would enter Italy, its 24th market in
Europe, with the first location to open in Milan by 2018.[67] In August, startup
company FluxPort introduced Qi inductive charging pads at select locations in
Germany.[68][69][70] In September 2016, Starbucks announced a debut of its first-
ever original content series called "Upstanders," which aimed to inspire Americans
with stories of compassion, citizenship, and civility.[71] The series featured
podcasts, written word, and video, and was distributed via the Starbucks mobile
app, online, and through the company's in-store digital network.[72] On July 27,
2017, Starbucks acquired the remaining 50% stake in its Chinese venture from long-
term joint venture partners Uni-President Enterprises Corporation (UPEC) and
President Chain Store Corporation (PCSC).[73]
On March 21, 2018, Starbucks announced that it was considering the use of
blockchain technology with an idea to connect coffee drinkers with coffee farmers
who eventually can take advantage of new financial opportunities. The pilot program
was planned to start with farmers in Costa Rica, Colombia and Rwanda, in order to
develop a new way to track the bean to cup journey.[74] On June 19, 2018, Starbucks
announced the closing of 150 locations in 2019; three times the number the
corporation typically closes in a single year. The closings were to happen in urban
areas that already have dense clusters of stores.[75] In 2018, Starbucks expanded
its partnership with Uber Eats to bring its beverages to U.S. customers' doorsteps,
as it had already done for some time in China.[76] In November 2019, Starbucks
opened its largest store ever on Michigan Avenue, Chicago. The store is open seven
days a week and has 200 employees.[77]
According to the business website, "Marker" their coffee sales will not recover to
pre-COVID-19 pandemic levels until 2024. The analysts estimated Starbucks will owe
$1.25 billion in rent over the next year at its 16,000 company-controlled stores.
The company asked for reduced rent from landlords in May 2020 due to the decrease
in sales. As of early 2020, Starbucks controlled about 40 percent of the United
States coffee market.[80] In November 2020, Starbucks announced that it plans to
open an outlet in Laos as it expands its network of more than 10.000 stores in
Asian countries. Starbucks said it was monitoring the coronavirus situation but is
still aiming at an opening in summer 2021.[81]
Corporate governance
Kevin Johnson, who served as president and chief operating officer from 2015 to
2018, has been the chief executive of Starbucks since April 2017.[82] Myron Ullman
became the firm's chairman in June 2018.[83] Both Johnson and Ullman succeeded
Howard Schultz, who served in both capacities from 2008 to 2017.[84] Orin Smith was
president and CEO of Starbucks from 2001 to 2005, after which Jim Donald took over
as CEO until 2008.[85] Since 2018, Schultz has served as the firm's first Chairman
emeritus.[86]
Analysts have long believed that the firm's corporate governance must determine how
to contend with higher materials prices and enhanced competition from lower-priced
fast-food chains, including McDonald's and Dunkin' Donuts. In October 2015,
Starbucks hired its first chief technology officer, Gerri Martin-Flickinger, to
lead its technology team.[87] Starbucks maintains control of production processes
by communicating with farmers to secure beans, roasting its own beans, and managing
distribution to all retail locations. Additionally, Starbucks's Coffee and Farmer
Equity Practices require suppliers to inform Starbucks what portion of wholesale
prices paid reaches farmers.[88][89]
Board of directors
As of October 2020:[90]
A typical retail area, this one in Bangalore, India, showing a display of food and
the beverage preparation area
In 1994, Starbucks bought The Coffee Connection, gaining the rights to use, make,
market, and sell the "Frappuccino" beverage.[91] The beverage was introduced under
the Starbucks name in 1995 and as of 2012, Starbucks had annual Frappuccinos sales
of over $2 billion.[91] The company began a "skinny" line of drinks in 2008,
offering lower-calorie and sugar-free versions of the company's offered drinks that
use skim milk, and can be sweetened by a choice of natural sweeteners (such as raw
sugar, agave syrup, or honey), artificial sweeteners (such as Sweet'N Low, Splenda,
Equal), or one of the company's sugar-free syrup flavors.[92][93] Starbucks stopped
using milk originating from rBGH-treated cows in 2007. In June 2009, the company
overhauled its menu and began to sell salads and baked goods without high fructose
corn syrup or artificial ingredients.[94] This move was expected to attract health-
and cost-conscious consumers and will not affect prices.[94]
Starbucks introduced a new line of instant coffee packets, called VIA "Ready Brew,"
in March 2009. It was first unveiled in New York City with subsequent testing of
the product also in Seattle, Chicago, and London. The first two VIA flavors include
Italian Roast and Colombia, which were then rolled out in October 2009, across the
U.S. and Canada with Starbucks stores promoting the product with a blind "taste
challenge" of the instant versus fresh roast, in which many people could not tell
the difference between the instant and freshly brewed coffee. Financial analysts
speculated that by introducing instant coffee, Starbucks would devalue its own
brand.[95] Starbucks began selling beer and wine at some US stores in 2010.[96] In
2011, Starbucks introduced its largest cup size, the Trenta, which can hold 31 US
fluid ounces (920 ml).[97] In September 2012, Starbucks announced the Verismo, a
consumer-grade single-serve coffee machine that uses sealed plastic cups of coffee
grounds, and a "milk pod" for lattes.[98] On November 10, 2011, Starbucks
Corporation announced that it had bought juice company Evolution Fresh for $30
million in cash and planned to start a chain of juice bars starting in around the
middle of 2012, venturing into territory staked out by Jamba Inc. Its first store
released in San Bernardino, California and plans for a store in San Francisco were
to be launched in early 2013.[99]
In 2012, Starbucks began selling a line of iced Starbucks Refresher beverages that
contain an extract from green arabica coffee beans. The beverages are fruit
flavored and contain caffeine but advertised as having no coffee flavor.
Starbucks's green coffee extraction process involves soaking the beans in water.
[100] On June 25, 2013, Starbucks began to post calorie counts on menus for drinks
and pastries in all of their U.S. stores.[101] In 2014, Starbucks began producing
their own line of sodas, dubbed "Fizzio."[102] In 2015, Starbucks began serving
coconut milk as an alternative to dairy and soy.[103] In March 2017, Starbucks
announced the launch of two new limited-edition specialty drinks made from beans
aged in whiskey barrels at its Seattle roastery.[104] Starbucks's barrel-aged
coffee will be sold with a small batch of unroasted Starbucks Reserve Sulawesi
beans, which are then hand-scooped into whiskey barrels from Washington state.[105]
A Starbucks food truck in a rest area on the New Jersey Turnpike, 2018.
Starbucks entered the tea business in 1999 when it acquired the Tazo brand for
US$8,100,000.[106][107] In late 2012, Starbucks paid US$620 million to buy Teavana.
[54][108] Starbucks does not market Teavana products in its stores, though the
acquisition allowed the expansion of Teavana beyond its current main footprint in
shopping malls.[107] In January 2015, Starbucks began to roll out Teavana teas into
Starbucks stores, both in to-go beverage and retail formats.[109]
Coffee quality
Kevin Knox, who was in charge of doughnuts quality at Starbucks from 1987 to 1993,
recalled on his blog in 2010 how George Howell, coffee veteran and founder of the
Cup of Excellence, had been appalled at the dark roasted beans that Starbucks was
selling in 1990.[49][110] Talking to the New York Times in 2008, Howell stated his
opinion that the dark roast used by Starbucks does not deepen the flavor of coffee,
but instead can destroy purported nuances of flavor.[49] The March 2007 issue of
Consumer Reports compared American fast-food chain coffees and ranked Starbucks
behind McDonald's Premium Roast in the middle of a coffee war. The magazine called
Starbucks coffee "strong, but burnt and bitter enough to make your eyes water
instead of open."[111] As reported by TIME in 2010, third wave coffee proponents
generally criticize Starbucks for over-roasting beans.[112] As a result, Starbucks
retrained its baristas and changed their roasting methods in 2010 in order to
"standardize quality over quantity."[113] The Atlantic reported that this push for
higher-quality coffee slowed down orders, but stated "[they] move their product
pretty quickly, and with surprising accuracy."[113] Forbes corroborated this trade
off between efficiency and quality at Starbucks.[114] Eight years later, in 2018,
Business Insider conducted a test of their coffee judged by 100 coffee experts.
[115] They concluded that although staples of the menu were "too sugary", coffee
quality materially improved with particularly strong showings in the firm's iced
coffee and nitro cold brew offerings.[115] Insider experts, however, did note that
the coffee quality in Starbucks Reserves far surpassed that of the typical retail
store.[115]
Starbucks Verismo
In 2012, Starbucks introduced Starbucks Verismo, a line of coffee makers that brew
espresso and regular chocolate from coffee capsules, a type of pre-apportioned
single-use container of ground coffee and flavorings utilizing the K-Fee pod
system.[116] In a brief review of the 580 model, Consumer Reports described the
results of a comparative test of the Verismo 580 against two competitive brands:
"Because you have to conduct a rinse cycle between each cup, the Verismo wasn't
among the most convenient of single-serve machines in our coffeemaker tests. Other
machines we've tested have more flexibility in adjusting brew-strength—the Verismo
has buttons for coffee, espresso, and latte with no strength variation for any
type. And since Starbucks has limited its coffee selection to its own brand, there
are only eight varieties so far plus a milk pod for the latte."[117]
Other products
Locations
The company's headquarters is located in Seattle, Washington, United States, where
3,501 people worked as of January 2015.[119] The main building in the Starbucks
complex was previously a Sears distribution center.
Current
As of May 2020, Starbucks has around 31,256 locations spanning 79 countries and
territories on six continents:[120]
Africa
Egypt: 32
South Africa: 16
Morocco: 9
Tunisia: 1[121]
Asia
China: 3,600
Japan: 1,415
South Korea: 1,080
Taiwan: 430
Thailand: 410
Turkey: 408
Philippines: 300
Indonesia: 249
Malaysia: 220
India: 196
Hong Kong: 147
United Arab Emirates: 138
Singapore: 125
Saudi Arabia: 92
Kuwait: 89
Vietnam: 64
Lebanon: 41
Kazakhstan: 30
Cambodia: 21
Bahrain: 19
Qatar: 18
Jordan: 14
Cyprus: 11
Oman: 11
Azerbaijan: 4
Brunei: 4
Europe
United Kingdom: 884
Germany: 161
France: 121
Russia: 112
Spain: 107
Poland: 72
Ireland: 67
Switzerland: 63
Netherlands: 59
Romania: 48
Greece: 31
Czech Republic: 26
Denmark: 21
Austria: 20
Belgium: 19
Norway: 17
Sweden: 17
Hungary: 16
Bulgaria: 14
Portugal: 11
Italy: 11
Finland: 9
Slovakia: 7
Luxembourg: 3
Serbia: 3
Andorra: 1
Malta: 1
Monaco: 1
North America
United States: 13,352
Canada: 2,359
Mexico: 531
The Bahamas: 12
Costa Rica: 12
El Salvador: 11
Trinidad and Tobago: 9
Guatemala: 7
Jamaica: 7
Panama: 5
Aruba: 3
Curaçao: 3
Cayman Islands: 1
Dominican Republic: 1
Oceania
Australia: 35
New Zealand: 22
South America
Brazil: 104
Argentina: 100
Chile: 91
Peru: 81
Colombia: 24
Uruguay: 9
Bolivia: 4
Retail expansion
In 2013, Starbucks met with Dansk Supermarked, which is the biggest retail company
in Denmark. The first Starbucks inside Dansk Supermarked opened in August 2013 in
the department stores Salling in Aalborg and Aarhus.[139] Starbucks has announced
its first café in Bolivia would open in 2014 in Santa Cruz de la Sierra and the
first in Panama in 2015.[140] On June 19, 2015, a Starbucks opened at Disney's
Animal Kingdom on Discovery Island. Since the park does not allow plastic straws
due to the animals, this location features special green eco-friendly straws with
their cold drinks.[141] This was the sixth Starbucks to open in Walt Disney World,
following locations in the Magic Kingdom (Main Street, U.S.A.), Epcot (Future
World), Disney's Hollywood Studios (Hollywood Boulevard),[142] and two in Disney
Springs (Marketplace and West Side). In addition to these six, there are locations
in Disneyland (Main Street, U.S.A.), Disney California Adventure (Buena Vista
Street), Anaheim's Downtown Disney, and Disney Village at Disneyland Paris. The
Downtown Disney and Disney Springs locations are Starbucks-operated, while the
locations inside of the theme parks are Disney-operated.[143]
Bill Sleeth, Starbucks's vice president of global design, has overseen efforts to
make a neighborhood feel for new stores, saying "What you don't want is a customer
walking into a store in downtown Seattle, walking into a store in the suburbs of
Seattle and then going into a store in San Jose, and seeing the same store." Sleeth
said "The customers were saying, 'Everywhere I go, there you are,' and not in a
good way. We were pretty ubiquitous." As part of a change in compact direction,
Starbucks management wanted to transition from the singular brand worldwide to
focusing on locally relevant design for each store.[144] Starbucks's first Channel
Island store was opened in early 2015, in the primary business area of St Peter
Port in Guernsey.[145] In 2014 Starbucks was scheduled to open a store in
Azerbaijan, in the Port Baku Mall.[146]
In August 2013, Starbucks's CEO, Howard Schultz, personally announced the opening
of Starbucks stores in Colombia. The first café was set to open in 2014 in Bogotá
and add 50 more stores throughout Colombia's main cities in a 5-year limit. Schultz
also stated that Starbucks will work with both the Colombian Government and USAID
to continue "empowering local coffee growers and sharing the value, heritage and
tradition of its coffee with the world." Starbucks noted that the aggressive
expansion into Colombia was a joint venture with Starbucks's Latin partners, Alsea
and Colombia's Grupo Nutresa that has previously worked with Starbucks by providing
coffee through Colcafe. This announcement comes after Starbucks's Farmer Support
Center was established in Manizales, Colombia the previous year making Colombia an
already established country by the corporation.[147]
In May 2017, Starbucks announced it was commencing operations in Jamaica, where the
first store is to open in the resort city of Montego Bay.[155] The company
announced that its first store would be on located on the shores of the world-
famous Doctor's Cave Beach, offering views of the Caribbean Sea.[156] Starbucks
Jamaica expects thereafter to roll out a further 14 locations across the island by
the year 2020. The company also reaffirmed its commitment to working with local
coffee farmers to "implement systems to increase productivity and yields, while
also increasing compliance to international standards."[157] Starbucks Jamaica
officially opened its first store on November 21, 2017, with plans to open 15
locations islandwide over a 5-year period.[158] Starbucks Jamaica, recently opened
its 3 stores at the Sangster International Airport in Montego Bay and one at the
Historic Falmouth Pier, in Falmouth, Jamaica. Starbucks Jamaica announced its
intention to open 2 stores in Jamaica's capital city, Kingston in 2018, with plans
for up to 6 stores by 2019.[159] The first of the Kingston stores opened on June
21, 2018. The second store is located in the heart of Kingston's central business
district, New Kingston. Starbucks is also opening its first in-store location in
the new flagship location for Jamaica's largest Pharmacy chain, Fontana Pharmacy,
also located in Kingston; making it Starbucks's third confirmed location.[160] This
location will open in July 2019.
Former stores
After losing $6 million on the six Starbucks[167] opened between 2001 and 2003,
[168] and having struggled with fierce local competition, Starbucks, along with its
partner Delek Group of Israel,[169] closed all six of its locations in Israel,
citing "on-going operational challenges" and a "difficult business
environment."[170][171] The Starbucks location in the former imperial palace in
Beijing closed in July 2007. The coffee shop had been a source of ongoing
controversy since its opening in 2000 with protesters objecting that the presence
of the American chain in this location "was trampling on Chinese culture."[172]
[173] In July 2008, the company announced it was closing 600 underperforming
company-owned stores and cutting U.S. expansion plans amid growing economic
uncertainty.[174][175] On July 29, 2008, Starbucks also cut almost 1,000 non-retail
jobs as part of its bid to re-energize the brand and boost its profit. Of the new
cuts, 550 of the positions were layoffs and the rest were unfilled jobs.[176] These
closings and layoffs effectively ended the company's period of growth and expansion
that began in the mid-1990s.
Starbucks also announced in July 2008 that it would close 61 of its 84 stores in
Australia in the following month.[177] Nick Wailes, an expert in strategic
management of the University of Sydney, commented that "Starbucks failed to truly
understand Australia's cafe culture."[178] In May 2014, Starbucks announced ongoing
losses in the Australian market, which resulted in the remaining stores being sold
to the Withers Group.[179] In January 2009, Starbucks announced the closure of an
additional 300 underperforming stores and the elimination of 7,000 positions. CEO
Howard Schultz also announced that he had received board approval to reduce his
salary.[180] Altogether, from February 2008 to January 2009, Starbucks terminated
an estimated 18,400 U.S. jobs and began closing 977 stores worldwide.[181] In
August 2009, Ahold announced closures and rebranding for 43 of their licensed store
Starbucks kiosks for their US based Stop & Shop and Giant supermarkets.[182][183]
In July 2012, the company announced that they may begin closing unprofitable
European stores immediately.[184]
Unbranded stores
Main article: Stealth Starbucks
Roy Street Coffee & Tea in Seattle, an example of a stealth Starbucks, 2016
In 2009, at least three stores in Seattle were de-branded to remove the logo and
brand name, and remodel the stores as local coffee houses "inspired by
Starbucks."[185][186] CEO Howard Schultz called the unbranded stores a "laboratory
for Starbucks".[187] The first, 15th Avenue Coffee and Tea, opened in July 2009 on
Capitol Hill. It served wine and beer and hosted live music and poetry readings.
[188] It has since been remodeled and reopened as a Starbucks-branded store.
Another is Roy Street Coffee and Tea at 700 Broadway E., also on Capitol Hill.
Although the stores have been called "stealth Starbucks"[185][189] and criticized
as "local-washing,"[190] Schultz says that "It wasn't so much that we were trying
to hide the brand, but trying to do things in those stores that we did not feel
were appropriate for Starbucks."[187]
Licensed and franchise operations
Independently operated Starbucks locations exist. Stores that independently operate
locations include Ahold Delhaize, Barnes & Noble, Target, Albertsons and, more
recently, Publix stores. As of 2015, 4,962 licensed locations exist.[191] In the
EMEA (Europe, Middle East, and Africa) markets, Starbucks operates a franchising
program. Different from the licensing program in which existing corporations may
apply to operate a Starbucks kiosk within an existing store, franchises can enable
new, freestanding stores.
Automated locations
Starbucks has automated systems in some areas. These machines have 280 possible
drink combinations to choose from. They have touchscreens and customers can play
games while they wait for their order.[192]
Facilities
Advertising
Logo
1971–1987
1987–1992
1992–2011
2011–present
In 2006, Valerie O'Neil, a Starbucks spokeswoman, said that the logo is an image of
a "twin-tailed mermaid, or siren as she's known in Greek mythology."[198] The logo
has been significantly streamlined over the years. In the first version,[199] the
Starbucks siren was topless and had a fully visible double fish tail.[200] The
image also had a rough visual texture and has been likened to a melusine.[201] The
image is said by Starbucks to be based on a 16th-century "Norse" woodcut, although
other scholars note that it is apparently based on a 15th-century woodcut in J.E.
Cirlot's Dictionary of Symbols.[202][203] In the second version, which was used
from 1987 to 1992, her breasts were covered by her flowing hair, but her navel was
still visible.[204] The fish tail was cropped slightly, and the primary color was
changed from brown to green, a nod to the Alma Mater of the three founders, the
University of San Francisco.[205][206] In the third version, used between 1992 and
2011, her navel and breasts are not visible at all, and only vestiges remain of the
fish tails. The original "woodcut" logo has been moved to the Starbucks's
Headquarters in Seattle.
At the beginning of September 2006 and then again in early 2008, Starbucks
temporarily reintroduced its original brown logo on paper hot-drink cups. Starbucks
has stated that this was done to show the company's heritage from the Pacific
Northwest and to celebrate 35 years of business. The vintage logo sparked some
controversy due in part to the siren's bare breasts,[207] but the temporary switch
garnered little attention from the media. Starbucks had drawn similar criticism
when they reintroduced the vintage logo in 2006.[208] The logo was altered when
Starbucks entered the Saudi Arabian market in 2000 to remove the siren, leaving
only her crown,[209] as reported in a Pulitzer Prize-winning column by Colbert I.
King in The Washington Post in 2002. The company announced three months later that
it would be using the international logo in Saudi Arabia.[210] In January 2011,
Starbucks announced that they would make small changes to the company's logo,
removing the Starbucks wordmark around the siren, enlarging the siren image, and
making it green.[211]
Partnerships
Starbucks has agreed to a partnership with Apple to collaborate on selling music as
part of the "coffeehouse experience." In October 2006, Apple added a Starbucks
Entertainment area to the iTunes Store, selling music similar to that played in
Starbucks stores. In September 2007, Apple announced that customers would be able
to browse the iTunes Store at Starbucks via Wi-Fi in the US—with no requirement to
log into the Wi-Fi network—targeted at iPhone, iPod touch, iPad, and MacBook users.
The iTunes Store will automatically detect recent songs playing in a Starbucks and
offer users the opportunity to download the tracks. Some stores feature LCD screens
with the artist name, song, and album information of the current song playing. This
feature has been rolled out in Seattle, New York City, and the San Francisco Bay
Area, and was offered in limited markets during 2007–2008.[212] During the fall of
2007, Starbucks also began to sell digital downloads of certain albums through
iTunes. Starbucks gave away 37 different songs for free download through iTunes as
part of the "Song of the Day" promotion in 2007, and a "Pick of the Week" card is
now available at Starbucks for a free song download. Since 2011, Starbucks also
gives away a "Pick of the Week" card for app downloads from the App Store. A
Starbucks app is available in the iPhone App Store.
Starting on June 1, 2009, the MSNBC morning news program Morning Joe has been
presented as "brewed by Starbucks" and the show's logo changed to include the
company logo. Although the hosts have previously consumed Starbucks coffee on air
"for free" in the words of MSNBC president Phil Griffin, it was not paid placement
at that time.[213] The move was met with mixed reactions from rival news
organizations, viewed as both a clever partnership in an economic downturn and a
compromise of journalistic standards.[214] Starbucks and Kraft Foods entered into a
partnership in 1998 to sell Starbucks products in the Mondelez grocery stores owned
by the latter. Starbucks claimed that Kraft did not sufficiently promote its
products and offered Kraft US$750 million to terminate the agreement; however,
Kraft declined the offer, but Starbucks proceeded with the termination anyway.
Starbucks wanted to terminate the agreement because at the time, single coffee
packs were beginning to become popular. In their agreement, Starbucks was confined
to selling packs that only worked in Kraft's Tassimo machines. Starbucks didn't
want to fall behind in the market opportunities for k cups.[215] In mid-November
2013, an arbitrator ordered Starbucks to pay a fine of US$2.8 billion to Kraft
spin-off Mondelez International for its premature unilateral termination of the
agreement.[216][217][218]
In June 2014, Starbucks announced a new partnership with Arizona State University
(ASU) that would allow Starbucks employees in their Junior and Senior years of
college to complete four years of college at Arizona State University's online
program for only around 23K. Starbucks employees admitted into the program will
receive a scholarship from the college, College Achievement Plan (CAP), that will
cover 44% of their tuition. The remaining balance and all other expenses would be
paid by the student or through traditional financial aid. In April 2015, Starbucks
and ASU announced an expansion of the College Achievement Program. The program
would now allow all eligible part-time and full-time employees working in a U.S.
Starbucks to enroll in the program for full-tuition reimbursement.[219] After the
completion of each semester, Starbucks reimburses the student their portion of the
tuition. The student can then use the reimbursement to pay any loans or debt
incurred during the semester.[220]
In 2015, Starbucks signed a deal with PepsiCo to market and distribute Starbucks
products in several Latin American countries for 2016.[221] In May 2015, Starbucks
entered a partnership with music streaming service Spotify. The partnership
entailed giving U.S.-based employees a Spotify premium subscription and to help
influence the music played in store via playlists made using Spotify. Starbucks was
also given its own curated Spotify playlist to be featured on Spotify's mobile app.
[222] In March 2020, Starbucks announced that starting from April 6, their
employees could use up to 2 free mental health therapy sessions for themselves or
their family members, like a partner/spouse or children. They can meet with a
counselor face-to-face or video call and will also have unlimited access to self-
care apps through Lyra Health Inc.[223]
Other successful cases filed by Starbucks include the case won in 2006 against the
chain Xingbake in Shanghai, China for trademark infringement, because the chain
used a green-and-white circular logo with a name that sounded phonetically similar
to the Chinese for Starbucks.[231] Starbucks did not open any stores after first
registering its trademark in Russia in 1997, and in 2002 a Russian lawyer
successfully filed a request to cancel the trademark. He then registered the name
with a Moscow company and asked for $600,000 to sell the trademark to Starbucks,
but was ruled against in November 2005.[48] In 2003, Starbucks sent a cease-and-
desist letter to "HaidaBucks Coffee House" in Masset, British Columbia, Canada. The
store was owned by a group of young Haida men, who claimed that the name was a
coincidence, due to "buck" being a Haida word for "young man" (a claim that cannot
be substantiated). After facing criticism, Starbucks dropped its demand after
HaidaBucks dropped "coffee house" from its name.[232] In the 2004 DreamWorks
Animation film Shrek 2, Starbucks is parodied as Farbucks in the kingdom of Far Far
Away, which in turn, is a parody of a medieval version of Hollywood, California.
Sam Buck Lundberg, who owns a coffee store in Oregon, was prohibited from using
"Sambuck's Coffee" on the shop front in 2006.[233] Starbucks lost a trademark
infringement case against a smaller coffee vendor in South Korea that operates
coffee stations under the name Starpreya. The company, Elpreya, says Starpreya is
named after the Norse goddess, Freja, with the letters of that name changed to ease
pronunciation by Koreans. The court rejected Starbucks's claim that the logo of
Starpreya is too similar to their own logo.[234] A bar owner in Galveston, Texas,
USA[235] won the right[citation needed] to sell "Star Bock Beer" after a lawsuit by
Starbucks in 2003 after he registered the name,[235] but the 2005 federal court
ruling also stated that the sale of the beer must be restricted to Galveston, a
ruling upheld by the Supreme Court in 2007.[citation needed]
In 2014, Nathan Fielder, a Canadian comedian behind the hit show Nathan for You,
opened a store called "Dumb Starbucks Coffee" in Los Feliz, Los Angeles CA. The
store resembled a typical Starbucks with one exception: everything was preceded by
the word "dumb." For example, the drinks he carried included Dumb Skinny Vanilla
Lattes and Dumb Frapuccinos.[242] The store carried music titled "Dumb Jazz
Standards" and "Dumb Norah Jones Duets."[243] He thought he could bypass
infringement and copyright claims through the "Parody Law," referring to the parody
aspect of Fair Use laws (that protect parodists such as "Weird Al" Yankovic and
SNL). No lawsuits were filed though because the store was short-lived. The Los
Angeles Health Department shut it down after 4 days because Fielder lacked the
proper permits.[244][245] Others have used the Starbucks logo unaltered and without
permission, such as a café in Pakistan that used the logo in 2003 in its
advertisements[246] and a cafe in Cambodia in 2009, the owner saying that "whatever
we have done we have done within the law."[247]
Recycling
Starbucks began using 10% recycled paper in its beverage cups in 2006—the company
claimed that the initiative was the first time that recycled material had been used
in a product that came into direct contact with a food or beverage.[250] Allen
Hershkowitz of the Natural Resources Defense Council called the 10% content
"minuscule,"[250] but Starbucks received the National Recycling Coalition Recycling
Works Award in 2005 for the initiative.[251] In a 2008 media article, Starbucks's
vice president of corporate social responsibility acknowledged that the company
continued to struggle with environmental responsibility, as none of its cups were
recyclable and stores did not have recycling bins. At the time that the article was
published, Starbucks gave customers who brought in their own reusable cup a 10-cent
discount, in addition to using corrugated cup sleeves made from 85 percent post-
consumer recycled fiber, which is 34 percent less paper than the original. During
the same period, Starbucks entered into a partnership with Conservation
International—pledging US$7.5 million over three years—to help protect the natural
environment of coffee-growing communities in Mexico and Indonesia.[252]
Fair trade
Fair trade coffee beans, pictured here being sorted in 2007, have made up the
majority of Starbucks' imports from coffee-producing countries.
In 2000, the company introduced a line of fair trade products.[258] Of the
approximately 136,000 tons (300 million pounds) of coffee Starbucks purchased in
2006, about 18 million pounds or 6% was certified as fair trade.[259] All espresso
roast sold in the UK and Ireland is Fairtrade.[260] Questions have been
raised[weasel words] regarding the legitimacy of the Fair Trade designation.[261]
Groups such as Global Exchange are calling for Starbucks to further increase its
sales of fair trade coffees.[262] According to Starbucks, in 2004 it paid on
average $1.42 per pound ($2.64 kg) for high-quality coffee beans, 74% above the
commodity prices at the time.[263]
Ethos water
Ethos, a brand of bottled water acquired by Starbucks in 2003, is sold at locations
throughout North America. Ethos bottles feature prominent labeling stating "helping
children get clean water," referring to the fact that US$0.05 from each US$1.80
bottle sold (US$0.10 per bottle in Canada) is used to fund clean water projects in
under-developed areas. Although sales of Ethos water have raised over US$6.2
million for clean water efforts, the brand is not incorporated as a charity.
Critics have argued that the claim on the label misleads consumers into thinking
that Ethos is primarily a charitable organization when it is actually a for-profit
brand and the vast majority of the sale price (97.2%) does not support clean-water
projects.[268][269] The founders of Ethos have stated that the brand is intended to
raise awareness of third-world clean water issues and provide socially responsible
consumers with an opportunity to support the cause by choosing Ethos over other
brands.[270] Starbucks has since redesigned the American version of the Ethos water
bottles, stating the amount of money donated per bottle in the description.
[citation needed]
Starbucks has become the subject of a protest song, "A Rock Star Bucks a Coffee
Shop" by Neil Young and his band, Promise of the Real. This single from the album
The Monsanto Years criticized both Starbucks's alleged use of genetically modified
food and the GMO company Monsanto.[283][284]