Since opening its first store in Pike Place Market, Seattle, Washington (USA) in 1971, Starbucks has established itself as the world’s leading retailer, roaster and brand of specialty coffee with over with 17,009 stores in 55 countries. The company, which ranks amongst the world’s top 100 global brands according to Interbrand 2006, has an impressive record of sales and profit growth. In FY2006 Starbucks achieved a sales turnover of $7.8 billion, an increase of 22% on 2005, and operating margin of 11.4%. In 2010 the revenue of Starbucks is $ 10.71 billion.
Starbucks Headquarters Seattle
Starbucks has grown from a single coffee shop in Seattle 40 years ago to a $6.38 billion worth of an international company. Its operations include upwards of 13,567 coffee shops and kiosks in the United States and Canada, more than 100 in the United Kingdom, and rest of them are in other countries, including China, Japan, Kuwait, Lebanon, New Zealand, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand. In addition to a variety of coffees and coffee drinks, Starbucks shops also feature Tazo teas, pastries and other food items, and espresso machines, coffee brewers, and other assorted items. The company also sells many of these products via mail order and online at starbucks.com. It also wholesales its coffee to restaurants, businesses, education and healthcare institutions, hotels, and airlines. Through a joint venture with Pepsi-Cola Company, Starbucks bottles Frappuccino beverages and sells them through supermarkets and convenience and drugstores. Through a partnership with Kraft Foods, Inc., the company sells Starbucks whole bean and ground coffee into grocery, warehouse club, and mass merchandise stores. In addition, it distributes Starbucks premium coffee ice creams to U.S. supermarkets. From a single small store that opened in 1971 to its status as a gourmet coffee giant at the turn of the millennium, Starbucks has led a coffee revolution in the United States and beyond.
1.2 A BRIEF HISTORY OF STARBUCKS IN DECADES
The first Starbucks opens. The name comes from Herman Melville’s Moby Dick, a classic American novel about the 19th century whaling industry. The seafaring name seems appropriate for a store that imports the world’s finest coffees to the cold, thirsty people of Seattle.
Howard Schultz joins Starbucks in 1982. While on a business trip in Italy, he visits Milan’s famous espresso bars. Impressed with their popularity and culture, he sees their potential in Seattle. He’s right – after trying lattes and mochas, Seattle quickly becomes coffee-crazy.
The demand for great coffee allows Starbucks to expand beyond Seattle, first to the rest of the United States, then further a field. After becoming one of the first companies to offer stock options to its part-time employees, Starbucks becomes a publicly traded company.
The Starbucks phenomenon continues. At the time of writing, Starbucks has more than 6,000 locations in over 30 countries. In addition to our excellent coffees and espresso drinks, people now enjoy Tazo® tea and Frappuccino® ice blended beverages.
1.3 KEY DATES OF STARBUCKS
1971: Gordon Bowker, Jerry Baldwin, and Zev Siegl open the first Starbucks in Seattle's Pike Place Market. 1982: Howard Schultz is hired to manage retail sales and marketing. 1983: Peet's Coffee is acquired.
1985: Schultz leaves the company to found Il Giornale, an operator of coffee bars. 1988: A mail-order catalog is introduced.
1992: Company goes public.
1993: First East Coast store opens, in Washington, D.C.
1995: Frappuccino beverages are introduced.
1996: Overseas expansion begins with units in Japan, Hawaii, and Singapore. Partnership with Dreyer's begins selling Starbucks Ice Cream. Partnership with...
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