Thursday, November 13, 2008

Starbucks History


The original Starbucks was opened in Pike Place Market in Seattle, Washington, USA in 1971 by three partners which consist of an English teacher Jerry Baldwin, a history teacher Zev Siegel, and writer Gordon Bowker to sell high-quality coffee beans and coffee equipments. Starbucks Corporation expanded rapidly over 44 countries around the world and now become the largest international coffeehouse chain with 15,000 stores.


Starbucks serves variety of beverages such as brewed coffee, hot chocolate, Frappuccinos, espresso-based hot drinks, other non-coffee hot and cold drinks, snacks, cakes, own brand mugs and coffee beans. Besides, Starbucks’ brand ice-cream and coffee are available for sales at some grocery stores in certain countries. Moreover, the company also markets books, music, and film through the Starbucks Entertainment division and Hear Music brand.

Besides selling coffee, for the company ongoing innovation and transformation, Starbucks CEO Howard Schultz introduced a state of the art espresso system to replace the Verismo 801. Moreover, Starbucks also hope to enter the energy drink market and introduce a customer reward program initiated for registered Starbucks Card User. Members are entitled rewards such as free Wi-Fi internet services and free refills of brewed coffee at certain stores. This approach is to create and strengthen customer loyalty.

In addition, Starbucks also acquired “The Coffee Equipment Company” which is the manufacturer of the Clover Brewing System. This unique "fresh-pressed" coffee system is currently testing the market at six Starbucks locations which are three in Seattle, and three in Boston. Starbucks does not franchise with individuals but enters into licensing arrangements with some companies. The licensed locations include airports, grocery stores, theme parks, major food services corporations, university campuses and hospitals. Additionally, Starbucks had partnered with Magic Johnson's Johnson Development Corporation to form Urban Coffee Opportunities to operate in low-income urban areas.

Starbucks makes their business more environmental friendly by starting "Grounds for your Garden". It is a one year round program that gives leftover coffee grounds to public for composting purpose. Customers can request their local Starbucks to begin the practice if they didn’t participate. Furthermore, Starbucks has reduced the size of their paper napkins and their garbage bags to reduce solid waste. As a result, Starbucks was awarded for their major contributions to the environment.

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