Starbucks History

Topics: Starbucks, Coffee, Coffeehouse Pages: 24 (8393 words) Published: December 5, 2012
Starbucks Corporation is a global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, and 164 in Thailand.[1] Starbucks sells hot and cold drinks, coffee beans, salads, hot and cold sandwiches, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. From Starbucks' founding in 1971 in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-1990s, and overseas stores now constitute almost one third of Starbucks' stores.[3] The company planned to open a net of 900 new stores outside of the United States in 2009,[4] but has announced 300 store closures in the United States since 2008.[5]

The first Starbucks opened in Seattle, Washington, on March 30, 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. The three were inspired by coffee roasting entrepreneur Alfred Peet, whom they knew personally, to sell high-quality coffee beans and equipment.[6] Originally the company was to be called Pequod after a whaling boat from Moby-Dick but this name was rejected by some of the co-founders. The company was instead named after the chief mate on the Pequod, Starbuck.[7] From 1971–1976, the first Starbucks was at 2000 Western Avenue; it then was relocated to 1912 Pike Place.[8] The company only sold roasted coffee and did not yet brew coffee to sell.[9] During their first year of operation, they purchased green coffee beans from Peet's, then began buying directly from growers.In 1984, the original owners of Starbucks, led by Jerry Baldwin, took the opportunity to purchase Peet's.[citation needed] During the 1980s total sales of coffee in the USA were falling, but sales of specialty coffee increased, forming 10% of the market in 1989, compared to 3% in 1983.[10] By 1986 the company had 6 stores in Seattle[10] and had only just begun to sell espresso coffee.[11] Howard Schultz In 1987, the original owners sold the Starbucks chain to Schultz who rebranded some of his own Il Giornale coffee outlets as Starbucks' and quickly began to expand. In the same year, Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois.[12] By 1989 there were 46 stores across the Northwest and Midwest in 1989 and Starbucks was roasting over 2,000,000 pounds (910,000 kg) of coffee a year.[10] At the time of its initial public offering on the stock market in June 1992, Starbucks had grown to 140 outlets and had a revenue of $73.5m, up from $1.3m in 1987. It's market value was $271m. The 12% portion of the company sold raised the company around $25m which would help it double the number of stores over the next two years.[13] By September 1992, the share price had risen 70% to over 100 times the earnings per share of the previous year.[9] The first Starbucks location outside North America opened in Tokyo, Japan, in 1996.[14] Starbucks entered the U.K. market in 1998 with the $83 million[15] acquisition of the then 60-outlet, UK-based Seattle Coffee Company, re-branding all the stores as Starbucks. In September 2002, Starbucks opened its first store in Latin America, at Mexico City. In 1999, Starbucks experimented with eateries in the San Francisco Bay area through a...
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