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Where do you even start when it comes to Starbucks.
I guess they are big right. That’s what I had like to talk about they have almost 30,000 locations.
Not even when you combine them on a global scale.
And in the U.S Starbucks is just by far number 1 about half of their locations are in the US and the other half are spread throughout the rest of the world.
Notably, almost 5000 in China, 1500 in Canada, 1200 in Japan, 1200 in Korea, 1000 in the UK, about half of those are company-owned and the other half are licensed.
Obviously they make more money from the company-owned store. Their 2018 revenue, by the way, was almost 25 billion dollars.
Making them a Fortune 500 company ranking them right there at 121.
It amazed at how they always mess up your name. When they write it on the cup or call it out.
I don’t know but for a company that’s well known throughout the world and actually has a subset of jokes about.
How they are so big?
I think it’s worth it to take a look at how they got so big.
Three Students that met each other in the early 1960s while attending the University of San Francisco the way they all met is actually really unusual two of them decided to live together after having only known each other for a few minutes and then another to meet each other through answering Bulletin about carpooling across the country.
When a few years after graduation they were all living in Seattle on separate careers path but looking for a way that they could get together and start working on something.
Volcker was a writer for a magazine that had just gone out of business. Baldwin was an educator in English. Segal was a history teacher but they were all passionate about their coffee.
And I am gonna say particularly, Gordon Bowker, I say that because he had been taking trips to Vancouver from Seattle which is a sizeable trip for the Sole purpose of bringing back some coffee that he felt was much better than anything he combined Seattle.
Let’s face it it probably was that coffee that he would bring back became really popular among his friends.
They would buy it from him and that’s where the whole idea came from. The three of them just stopped…
and said look we all love premium coffee there’s an underserved market for it out here and we are in search for a project.
I think it became a no-brainer at that point when they decided that they would open a high-quality coffee store. But they didn’t do anything big suddenly. They located a coffee store in California that was successfully doing what they are looking to do.
The man who runs that store Alfred Peet ended up becoming somewhat of a mentor and if you’re a familiar with PETE’s coffee.
It’s the same Peet more on that later so after about 3 or 4 months of learning about the business and Pete’s methods they each contributed $1350 of their own money collectively took out of $5,000 loan and used it to open up the first-ever Starbucks.
They settled on that name because they wanted something that started with that strong ST sound…
after going through a long list of the ST words they thought of the first mate from the book MOBY DICK named Starbuck.
Now there’s a name with some strong sounding letters all the way through plus is an added bonus.
So here we are Starbucks Now exist as a single Seattle location but it’s important to point out that this store was nothing like the one we know today.
Mostly because the coffee they sold was not ready to drink. Instead, they sold all the stuff you can make it yourself at home.
Meaning they sold the coffee beans teas spices in addition to the coffee maker and other accessories this was more of a retail store than a restaurant.
But it did well and over the next few years, they expanded into a handful of locations around the Seattle area in addition to starting a wholesale business they would provide their special roasted coffee to local restaurants.
ZEV SIEGEL one of the three founding members left the company in 1980 and that leads us to the second part.
This one concerning A man named HOWARD SCHULTZ
has an initial connection with the company was that he was a salesman for one of their suppliers.
He recognizes something good when he sees it, during the first trip to one of the those Starbucks stores in 1982. He was so impressed with everything that he instantly wanted in on it so desperately. That he actually convinced them to hire him on as a manager.
One year later, they send him to a trade show in Italy he was in Milan and again recognized something good this time he was impressed by all the COFFEE SHOP and ESPRESSO BARS that he encountered over there.
Just nice fun relaxing environments when he returned he told POKER and BALDWIN about them and heavily urged them to move their business in that direction.
He may have come on a little strong but in his mind coffee shop in espresso or the way of the future far more lucrative than the retail business that they were currently pursuing.
In Italy POKER and BALDWIN weren’t nearly as convinced to give them credit. They did listen and start experimenting a bit with the idea but it was just one location and it was not their focus.
Schultz, it wasn’t nearly enough and he was not about to pass up this opportunity. So in 1986, he resigned from Starbucks.
So he could start his own chain of coffee shops that were actually closely tied to Starbucks there were early investors and actually supplied his coffee.
Remember their mentor ALFRED PEET and his original coffee business in California that they modelled the first Starbucks.
After well PEETE had since sold it to someone else and in 1984 Starbucks jumped at the opportunity to buy it given their history with it in respect for it.
So, now they owned it then in 1987 GORDON BOWKER left the company and JERRY BALDWIN decided he had been happier running PEET’s rather than sticking with Starbucks. So here’s what happened PETE’s and STARBUCKS were separated.
JERRY BALDWIN stuck with PETE’s and sold Starbucks to HOWARD SCHULTZ.
He combined it with a smaller company that he had started I know there a lot here but end result was JERRY BALDWIN was now in charge of PETE’s and HOWARD SCHULTZ was now in charge of Starbucks.
Now its point out that compared to today this is all very small stuff Starbucks had 6 locations at the time of the deal and was sold for just under 4 million dollars. I would not say the initial founders did too much in the way of growing Starbucks to use and obvious metaphor it.
They did plant the seed and also established some principles that would be continued well past their involvement but I think anyone would tell you that HOWARD SCHULTZ is the reason Starbucks is so big.
We all know how much she believed in the concept and it was the confidence that motivated him to take some big risk and expanding it. He spared no expense and hiring top tier manager went into the dead even posted losses for a while but the important thing is even though these uncertain time he never compromised his vision.
Here’s what they had going for them for 1 quality at times you can call this is a disadvantage but from the beginning, one of their principles was never to sacrifice quality, Good employees. Starbucks offered good pay and benefits which resulted in lower turnover and meant they were more knowledgeable and happier than their competitors.
They would receive greater training when they were first hired and just be more experienced since they worked there longer.
Today what Starbucks was sort of a cool mysterious place that a lot of people had heard of but few had actually been of their reputation preceded them so whenever they would enter a new City. Everyone would just hurry down to check them out so in answering how did they get so big?
I simply summarised that they had a good idea with a good reputation, good employees, good management higher standard. And most important A leader who believes in what they were doing.
From the time that he took over 1987 to 1992, the chain had grown from 6 locations into over 100 which is incredible right there but then they had their public offering and things started exploding.
Again, what can you really say about this I think it’s just fun to look through how many locations they have opened over this years. This graph is crazy you can’t even see the lines until they started getting into the 1990s.
Here’s the same information but presented in a different way the last graph showed how many total locations it had each year and then this graph shows how many they added each year. It shows that they added more store each year than the year before from 1987 to 2001.
And have added new stores every single year with one exception of 2009. You know it’s the economic recession and all that not great for a high-quality coffee provider but obviously they brought it right back.
How to Make Starbucks Frappuccino in Home[Step By Step]
Then in 1998, they formed a licensing agreement with craft to make those bags, of their coffee that you see in the grocery store.
In 2003 they paid 72 million dollars to buy the Seattle coffee company
which included the brand Seattle’s best
Moving onto HOWARD SCHULTZ he as remained the CEO of Starbucks for the better part of the last 30 plus years and the short times. He was always involved in another big role in the company today he’s worth 4. 6 Billion dollars and Forbes ranks him as the 617 richest men in the world.
Let me know in the comments what do you think of all this. It’s a great story of following your passion and starting a business around it but the biggest thing I take from it is you have to respect HOWARD SCHULTZ he saw a promising small business and not only squeezed his way into it.
Eventually took it over and a scaled it to an unheard of proportion. It does not even seem possible but here we are. He made some smart moves to some big risk and it all paid off so maybe we can pull some motivation from it. If you come across a small business with big potential maybe try to get involved I would not expect these result but we know now it’s possible.
Brief History of Starbucks
It’s just a great story of growing business easily one of the most notable so any thoughts you have about about it leave them in the comments.
How much is Starbucks worth?
Starbucks net worth is $30 Billion,and market Cap range is $69.5B-$85.5B.
Which is the healthiest drink at starbucks?
The healthiest drinks in starbucks are:
1.Tall Coffee.[choice of milk./Optional]
3.Tall or Grande Tea.
4.Tall Americano.[choice of milk./Optional]
Can you buy shares in starbucks?
Yes,you can buy shares of starbucks.Here you can see starbucks corp.share price just Click Here.
Who is Starbucks owned by?
Howard Schultz owned starbucks.
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