Article and research by Thomas Baurley, Technogypsie Research, August 7, 2017 (Originally written in 2012 original lost from hackers)
Starbucks … my biggest addiction and life saving business that I stand by strong and dedicated. I apologize for the loss of the original article as it was destroyed from a hacking attack. So let’s begin with my telling of the small coffee roaster shop turned international empire. Starbucks has grown from the small love-able shop and blossomed into a world-wide phenomena with lots of love or despise depending on who you talk to. Today it operates over 24,000 locations worldwide (2017).
As a world traveller, Starbucks has been my saving grace – free high speed WiFi enabling me to stay in touch with family/friends, get business done, find lodging, get my bearings, and internationally have a place to rest and recover with a slice of home … and not have to pay a table fee, pay for the rest rooms, or get pressure to move on. Starbucks has become my second office place and when travelling, my main office. Not being a coffee drinker, it is the source of my biggest addiction – The Chai Creme Frappacino. Truth be told, I LOVE the fact that Starbucks is everywhere, she has been my hero. Growth changes many companies, but regardless of the current controversy, she has always taken the right course in my mind’s eye.
Many consider Starbucks a threat to the small mom-and-pop, setting course for the soothsayers who don’t realize Starbucks was originally one. Understandably Starbucks makes it harder for the small mom and pops to survive, but that’s not their fault nor their business model. They are riding their wave of success. They are seen worldwide as the main icon of “second wave coffee” by having their own quality, brand, taste, and experience. All of which (minus the coffee product) I can vouge is amazing and unique. The third wave coffee market competes with Starbucks and surpasses it with their own unique clientele, those seeking hand-made coffee, lighter roasts, and a more independent move. That’s great and fabulous leading to the success of the third wave coffee businesses. But Starbucks has a unique place and need regardless of how large it has become. It will be more efficient, safe, and contributing for the world.
Starbucks has expanded from being simply a coffee bean roaster to a world-wide coffee shop, restaurant, and WiFi hotspot. It is a place for all to find rest and relaxation. They serve a wide variety of products from tea & coffee to smoothies and alcohol. All locations serve hot and cold drinks ranging from whole-bean coffee, microground instant coffee (VIA), espesso, caffe latte, loose or liquid teas ranging from peppermint to chai, Evolution fresh juices, Frappuccino (smoothie-like) drinks, hot chocolate, beer, and wine. They offer La Boulange pastries, snacks, chips, crackers, pre-packaged food, hot/cold sandwiches, appetizers, and ice cream. They also offer various products – pre-packaged coffee, tumblers, coffee cups, music, and other novelties.
The very first Starbucks was founded on March 31, 1971 in Seattle, Washington by three students from the University of San Francisco – English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. They were first inspired to sell high-quality coffee and roasting equipment. The ideas and methodologies were taught to them by Alfred Peet, a coffee-roasting entrepreneur. They named the company of the chief mate in the book “Moby Dick” – “Starbuck”. Its first location was at 2000 Western Avenue, Seattle, Washington from 1971-1976. It’s second location was at 1912 Pike Place, Seattle, Washington which stands today. They originally only sold roasted whole coffee beans at the first location and got their green coffee beans from Peet’s. Eventually they went to growers directly for their beans. In 1984 they purchased Peet’s. By 1986 they had 6 stores in Seattle and began selling espresso coffee made for customers. By 1987 the original owners sold the chain to Howard Schultz who rebranded his Il Giornale coffee outlets as “Starbucks”, expanding quickly through the U.S. By 1989 he had 46 stores in the Northwest and Midwest. Starbucks spreaded quickly in the 1990’s, and had its first international location opened in Tokyo by 1996. June 1992 Starbucks made its initial public offering on the stock market with 140 outlets and a annual revenue of over 73 million. By 2003 Starbucks purchased Seattle’s Best Coffee and Torrefazione Italia. By 2006 it purchased Diedrich Coffee and Coffee People. They purchased Teavana for 620 million in 2012. By 2014 they expanded in having 30 of their stores to serve beer and wine.
By 2014 Starbucks created its own line of hand-crafted sodas they call “Fizzio”. By 2015 They offered coconut milk as an alternative to soy or dairy.
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