Starbucks
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It was founded in 1971, and is currently the world's largest coffeehouse chain.
This article is about the worldwide coffee chain. For other uses, see Starbucks (disambiguation).Company type
- Nasdaq: SBUX
- Nasdaq-100 component
- S&P 100 component
- S&P 500 component
US8552441094 
March 30, 1971
Pike Place Market, Elliott Bay, Seattle, Washington, U.S.
38,038 (2023)
84 countries
- Coffee beverages
- smoothies
- tea
- baked goods
- sandwiches
US$35.98 billion (2023)
US$5.871 billion (2023)
US$4.125 billion (2023)
US$29.45 billion (2023)
US$−7.99 billion (2023)
c. 381,000 (2023)
- Starbucks Coffee
- Ethos Water
- Hear Music
- La Boulange Bakery
- Teavana
- Torrefazione Italia
- Tata Starbucks (India)
As of November 2022, the company had 35,711 stores in 80 countries, 15,873 of which were located in the United States. Of Starbucks' U.S.-based stores, over 8,900 are company-operated, while the remainder are licensed.[4]
The rise of the second wave of coffee culture is generally attributed to Starbucks, which introduced a wider variety of coffee experiences. Starbucks serves hot and cold drinks, whole-bean coffee, micro-ground instant coffee, espresso, caffe latte, full and loose-leaf teas, juices, Frappuccino beverages, pastries, and snacks. Some offerings are seasonal or specific to the locality of the store. Depending on the country, most locations provide free Wi-Fi Internet access.
Company overview
Starbucks 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 convert the coffee bean store into a coffee shop serving espresso-based drinks. As chief executive officer from 1986 to 2000, Schultz's first tenure led to an aggressive expansion of the franchise, first in Seattle, then across the West Coast of the United States. Schultz was succeeded by Orin Smith who ran the company for five years and positioned Starbucks as a large player in fair trade coffee, increasing sales to US$5 billion. Jim Donald was chief executive officer from 2005 to 2008, orchestrating a large-scale earnings expansion. Schultz returned as CEO during the financial crisis of 2007–08 and spent the succeeding decade growing the company's market share, expanding its offerings, and reorienting the brand around corporate social responsibility. Kevin Johnson succeeded Schultz as CEO in 2017. In March 2022, Starbucks announced that Schultz would return as CEO in April 2022 in an interim role.[5] Later that September, Laxman Narasimhan was appointed to succeed him in April 2023, with Schultz remaining a member of the board of directors. Narasimhan assumed the position sooner than planned, in March 2023.[6]
In addition to drinks and food, many stores carry Starbucks' official merchandise, such as mugs, tumblers, scoops, and coffee presses. There are also several select "Starbucks Evenings" locations that offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are 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.[7] However, since succeeding Schultz, Johnson has scaled back the Reserve coffee shops to only six to ten shops.[8] Further development on Reserve coffee shops will be dependent on the success of the few already in existence. Currently, Starbucks operates six coffee 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 location. The company has been subject to multiple controversies related to its business practices. Conversely, its franchise has commanded substantial brand loyalty, market share, and company value.
The company is ranked 120th on the Fortune 500[9] and 303rd on the Forbes Global 2000,[10] as of 2022.
Environmental and social policies
Environmental practices
In 1999, Starbucks started the "Grounds for your Garden" program. This gives leftover coffee grounds to anyone requesting it for composting. The goal of the program was to make the company environmentally friendlier. Although not all stores and regions participate, customers can request and lobby their local store to begin the practice.
In October 2008, The Guardian newspaper reported that Starbucks was wasting 6.2 million U.S. gallons (23.4 million liters) of water a day by leaving a tap constantly running for rinsing utensils in a 'dipper well' in each of its stores, but this is often required by governmental food safety codes.[306]
In June 2009, in response to concerns over its excessive water consumption, Starbucks re-evaluated its use of the dipper well system. In September 2009, company-operated Starbucks stores in Canada and the United States successfully implemented a new water saving solution that meets government health standards. Different types of milk are given a dedicated spoon that remains in the pitcher and the dipper wells were replaced with push button metered faucets for rinsing. This will reportedly save up to 150 U.S. gallons (570 liters) of water per day in every store.[307]
In January 2020, Starbucks shared its new environmental sustainability commitment to become a resource positive company. It announced three preliminary targets: By 2030, Starbucks will aim to reduce its carbon emissions, waste output, and water impact by 50%. It also identified five areas of focus: expanding plant-based menu options; shifting to reusable packaging; investing in regenerative agriculture, reforestation, forest conservation and water replenishment; better ways to manage waste; and more eco-friendly stores, operations, manufacturing, and delivery.[308]
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.[309] Allen Hershkowitz of the Natural Resources Defense Council called the 10% content "minuscule",[309] but Starbucks received the National Recycling Coalition Recycling Works Award in 2005 for the initiative.[310] 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% post-consumer recycled fiber, which is 34% 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.[311]
Plastic straw ban
On July 9, 2018, Starbucks President and CEO Kevin Johnson announced that Starbucks will ban the single-use plastic straws by January 1, 2020, on all cold drinks from all locations worldwide due to climate change concerns, pollution, and sea turtle endangerment as the single-use plastic straws failed to be designed for recycling when they were invented. Frappucinos will get straws made from a different material that is sustainable and environmentally friendly such as paper or compostable plastic, while other cold drinks will get straw-less lids. These new modified lids contain 9% less plastic than Starbucks' previous flat lid.[312] The Starbucks locations in Europe, China, Taiwan, Japan, Thailand, Vietnam, India, Canada, Hawaii, Alaska, Washington D.C., New Mexico, California, New York, Washington State, New Jersey, Oregon, Maryland, Delaware, Vermont, Massachusetts, Connecticut, and Rhode Island already eliminated single-use plastic straws by the end of 2018.[313][314] South Korea is the first country to introduce paper straws to all stores among 78 countries in the world that Starbucks has entered.[315]
Reusable cups
Starbucks has publicly committed to reducing waste by 50% by 2030.[316] After successfully completing the campaign to provide the Reusable Cup in Vietnam in 2020, it held the same event in Korea in 2021. Along with a picture of throwing away a cleanly washed recycled PET bottle on Instagram, a hashtag designated by Starbucks was written and uploaded, and a reusable cup was provided instead of a disposable cup.
In April 2013, Starbucks introduced reusable cups where customers would be able to bring their cup into any location and receive a small discount on their drink.[317] When the COVID-19 pandemic first began in 2019, the company halted the use of personal cups due to concerns with the transferring of germs.[318] In June 2021, the company reintroduced personal reusable cups with a contactless new method to eliminate shared touch points between customers and baristas.[319]
Starbucks is phasing out disposable cups in Korea entirely by 2025.[320][321]
Farmer equity practices
Starbucks began drafting plans for corporate social responsibility in 1994.[322] Since Starbucks has partnered with Conservation International (CI) to draft plans and audit its coffee and farmer equity (C.A.F.E.) program,[323] Starbucks's C.A.F.E. practices are based on a rating system of 249 indicators. Farmers who earn high overall scores receive higher prices than those who achieve lower scores. Ratings categories include economic accountability, social responsibility, environmental leadership in coffee growing and processing. Indicators for social responsibility have evolved and now include 'zero tolerance' indicators that require workers to be paid in cash, check, or direct deposit, ensure that all workers are paid the established minimum wage, that workplaces are free of harassment and abuse, that workplaces are nondiscriminatory and do not employ persons under the age of 14, and several more.[324] Starbucks has moved 90% of its coffee purchases to preferred C.A.F.E. certified providers, and the company is approaching its stated goal to purchase 100% of its coffee through C.A.F.E. or other 'ethically sourced' certification systems.[323]
Washington State University Assistant Professor Daniel Jaffee argues that Starbucks's C.A.F.E. practices merely 'green wash' "to burnish their corporate image".[325] Additionally, Professor Marie-Christine Renard of Rural Sociology of Chapingo University in Mexico wrote a case study of Starbucks's, Conservation International's, and Agro-industries United of Mexico (AMSA)'s joint conservation effort in Chiapas, Mexico in which she concluded that "[w]hile the CI-Starbucks-AMSA Alliance paid better prices, it did not allow the producers to appropriate the knowledge that was necessary for the organizations to improve the quality of their coffee."[326]
Partnerships
Apple Inc.
Starbucks has partnered with Apple Inc. 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 automatically detects 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 was rolled out in Seattle, New York City, and the San Francisco Bay Area, and was offered in limited markets during 2007–2008.[360] 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 free "Pick of the Week" download is available from the App Store.[361][362]
MSNBC
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.[363] 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.[364] The endorsement deal ended in August 2013.[365]
Kraft Foods
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 did not want to fall behind in the market opportunities for K-Cups.[366] In mid-November 2013, an arbitrator ordered Starbucks to pay a fine of US$2.8 billion to Mondelez International, a corporate spin-off of Kraft, for its premature unilateral termination of the agreement.[367][368][369]
Arizona State University
In June 2014, Starbucks announced a 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 US$23,000. Starbucks employees admitted into the program will receive a scholarship from the college,[370] 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.[371] 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.[372]
Spotify
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.[374]
Disney
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.[375] 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),[376] 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.[377]
Lyra Health Inc.
In March 2020, Starbucks announced that starting from April 6, all U.S. employees and their eligible family members could use up to 20 free mental health therapy or coaching sessions per year.[380] 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.[381]
PayPal/Bakkt
Through partnerships with financial technology company PayPal and digital asset manager Bakkt, Starbucks customers can reload their Starbucks cards with cryptocurrencies such as Bitcoin and Ether.[382][383]
Arla Foods
Starbucks have a range of ready-to-drink iced coffee products in shops and supermarkets, which are produced under license by Danish-Swedish dairy cooperative Arla Foods.[384]
Reviews and reception
Kevin Knox, who was in charge of doughnuts food 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.[35][385] 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.[35]
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."[386]
As reported by Time in 2010, third wave coffee proponents generally criticize Starbucks for over-roasting beans.[387] As a result, Starbucks retrained its baristas and changed its roasting methods in 2010 in order to "standardize quality over quantity".[388] 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."[388] Forbes corroborated this trade off between efficiency and quality at Starbucks.[389]
In 2018, Business Insider conducted a test of Starbucks coffee judged by 100 coffee experts.[390] It 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 coffee offerings.[390] Insider experts, however, did note that the coffee quality in Starbucks Reserves far surpassed that of the typical retail store.[390]
Official website
Media related to Starbucks at Wikimedia Commons