Starbucks

Starbucks Corporation is an American

multinational chain of coffeehouses and
roastery reserves headquartered in Seattle,
Washington. As the world's largest
coffeehouse chain, Starbucks is seen to be
the main representation of the United
States' second wave of coffee culture.[5][6]
As of early 2020, the company operates
over 30,000 locations worldwide in more
than 70 countries. Starbucks locations
serve hot and cold drinks, whole-bean
coffee, microground instant coffee known
as VIA, espresso, caffe latte, full- and
loose-leaf teas including Teavana tea
products, Evolution Fresh juices,
Frappuccino beverages, La Boulange
pastries, and snacks including items such
as chips and crackers; some offerings
(including their annual fall launch of the
Pumpkin Spice Latte) are seasonal or
specific to the locality of the store.
Headquartered in
Starbucks
the Starbucks Corporation
Center, the
company was
founded in 1971 by
Jerry Baldwin, Zev Logo used since
Siegl, and Gordon 2011
Bowker at Seattle's
Pike Place Market.
During the early
1980s, they sold the
company to Howard
Starbucks
Schultz who – after
headquarters at
a business trip to
Milan, Italy – Starbucks Center in
decided to make the Seattle, Washington

coffee bean store a

Type Public
coffeeshop serving
Traded as NASDAQ: 
espresso-based NASDAQ-1
drinks. Schultz's Compone
first tenure as chief S&P 100
Compone
executive, from
S&P 500
1986 to 2000, led to Compone
an aggressive
expansion of the ISIN US8552441094 

franchise, first in
Industry Coffee
Seattle, then across shop
the U.S. West Coast. Founded March 31,
Despite an initial 1971
Pike Place
economic downturn
Market,
with its expansion Elliott Bay,
into the Midwest Seattle,
Washington
and British U.S.
Columbia, the Founders Jerry
Baldwin
company
Zev Siegl
experienced
Gordon
revitalized Bowker
prosperity with its Headquarters 2401 U
Avenu
entry into California
South,
in the early 1990s Seattl
through a series of Washi

highly publicized Number 28,218 (20

of
coffee wars. Schultz locations

was succeeded by Area Worldwide

served
Orin Smith who ran
Key Howard
the company for five people Schultz
years, positioning (chairman
 emeritus)
Starbucks as a large
Myron E.
player in fair trade
Ullman
coffee and (chairman)
increasing sales to Mellody
Hobson
$5 billion. Jim
(vice
Donald served as  chairman)
chief executive from Kevin
2005 to 2008, Johnson
(president
orchestrating a  and CEO)
large-scale earnings Products Coffee
beverages
expansion. Schultz
smoothies
returned as CEO in
tea •
the middle of the baked
2008 financial crisis goods •
and spent the sandwiche

succeeding decade
growing its market US$24.71
Revenue
share, expanding its billion (201
offerings, and Operating US$3.88
income billion (20
reorienting itself
Net US$4.51
around corporate
income billion (2018
social responsibility.
Total US$24.15
Kevin Johnson took
assets billion (2018)
over from Schultz in
Total US$1.16
2017, and continues
equity billion (2018)
to serve as the
firm's chief Number of 291,000 (
executive. employees
Subsidiaries Starbuc
Many stores sell Coffee
pre-packaged food Ethos
Water •
items, hot and cold
Evolutio
sandwiches, and Fresh •
drinkware including Hear M
mugs and tumblers; La Boul
select "Starbucks Bakery

Evenings" locations
offer beer, wine, and Seattle'
Best
appetizers.
Coffee
Starbucks-brand Teavan
coffee, ice cream, Torrefa
and bottled cold Italia
Website Starbucks.c
coffee drinks are
Footnotes /
also sold at grocery references
[1][2][3][4]
stores. In 2010, the
company began its
Starbucks Reserve program for single-
origin coffees and high-end coffee shops.
Starbucks operates six roasteries with
tasting rooms and 43 coffee bars as part
of the program. The latest roastery
location opened on Chicago's Magnificent
Mile in November 2019; it is the world's
largest Starbucks. The company has
received significant and sustained
criticism about its business practices,
corporate affairs, and role in society.
Conversely, its franchise has commanded
substantial brand loyalty, market share,
and company value.

History
Interior of the Pike Place Market location in 1977

Founding

The first Starbucks was opened in Seattle,

Washington, on March 31, 1971,[7] by three
partners who met while they were
students at the University of San
Francisco:[8] English teacher Jerry Baldwin,
history teacher Zev Siegl, and writer
Gordon Bowker were inspired to sell high-
quality coffee beans and equipment by
coffee roasting entrepreneur Alfred Peet
after he taught them his style of roasting
beans.[9] Bowker recalls that Terry Heckler,
with whom Bowker owned an advertising
agency, thought words beginning with "st"
were powerful. The founders brainstormed
a list of words beginning with "st," and
eventually landed on "Starbo," a mining
town in the Cascade Range. From there,
the group remembered "Starbuck," the
name of the chief mate in the book Moby-
Dick.[10] Bowker said, "Moby-Dick didn't
have anything to do with Starbucks
directly; it was only coincidental that the
sound seemed to make sense."[10][11]

The first Starbucks store was located in

Seattle at 2000 Western Avenue from
1971–1976. This cafe was later moved to
1912 Pike Place.[12] During this time, the
company only sold roasted whole coffee
beans and did not yet brew coffee to
sell.[13] During their first year of operation,
they purchased green coffee beans from
Peet's,[14] then began buying directly from
growers.
Sale and expansion

A Chinese-style Starbucks in Chinatown, Manhattan,

New York, 2017

In 1984, the original owners of Starbucks,

led by Jerry Baldwin, purchased Peet's.[15]
During the 1980s, total sales of coffee in
the U.S. were falling, but sales of specialty
coffee increased, comprising 10% of the
market in 1989, compared with 3% in
1983.[16] By 1986, the company operated
six stores in Seattle[16] and had only just
begun to sell espresso coffee.[17] In 1987
the original owners sold the Starbucks
chain to former manager Howard Schultz,
who rebranded his Il Giornale coffee
outlets as Starbucks and quickly began to
expand.[18] That same year, Starbucks
opened its first locations outside Seattle at
Waterfront Station in Vancouver, British
Columbia, and Chicago, Illinois.[19] By
1989, 46 stores existed across the
Northwest and Midwest, and Starbucks
was roasting over 2,000,000 pounds
(907,185 kg) of coffee annually.[16] At the
time of its initial public offering (IPO) on
the stock market in June 1992, Starbucks
had 140 outlets, with revenue of US$73.5
million, up from US$1.3 million in 1987.
The company's market value was US$271
million by this time. The 12% portion of the
company that was sold raised around
US$25 million for the company, which
enabled it to double its number of stores
over the next two years.[20] By September
1992, Starbucks's share price had risen by
70% to over 100 times the earnings per
share of the previous year.[13] In July 2013,
over 10% of in-store purchases were made
on customer's mobile devices using the
Starbucks app.[21]

The company once again utilized the

mobile platform when it launched the
"Tweet-a-Coffee" promotion in October
2013. On this occasion, the promotion also
involved Twitter and customers were able
to purchase a US$5 gift card for a friend by
entering both "@tweetacoffee" and the
friend's handle in a tweet. Research firm
Keyhole monitored the progress of the
campaign; a December 2013 media article
reported that 27,000 people had
participated and US$180,000 of purchases
had been made to date.[22][23] As of 2018,
Starbucks is ranked 132nd on the Fortune
500 list of the largest United States
corporations by revenue.[24] In July 2019,
Starbucks reported "fiscal third-quarter net
income of $1.37 billion, or $1.12 per share,
up from $852.5 million, or 61 cents per
share, a year earlier." The company's
market value of $110.2 billion increased by
41% in mid-2019. The earnings per share
in quarter three were recorded at 78 cents,
much more than the forecast of 72
cents.[25]
Development since 2005[26]
Average
Revenue Net income Total Assets
Year Price per Share Employees
in mil. US$ in mil. US$ in mil. US$
in US$

2005 6,369 494 3,514 13.40 115,000

2006 7,787 564 4,429 17.62 145,800

2007 9,412 673 5,344 14.12 172,000

2008 10,383 316 5,673 7.61 176,000

2009 9,775 391 5,577 7.87 142,000

2010 10,707 946 6,386 13.07 137,000

2011 11,700 1,246 7,360 18.92 149,000

2012 13,277 1,384 8,219 25.63 160,000

2013 14,867 8 11,517 33.71 182,000

2014 16,448 2,068 10,753 37.78 191,000

2015 19,163 2,757 12,416 53.25 238,000

2016 21,316 2,818 14,313 56.59 254,000

2017 22,387 2,885 14,366 57.27 277,000

2018 24,720 4,518 24,156 57.50 291,000

2019 26,509 3,599 19,220 81.44 346,000

Expansion to new markets and
products

Howard Schultz served as chief executive from 1986

to 2000, and again from 2008 to 2017.

The first Starbucks location outside North

America opened in Tokyo, Japan, in
1996.[27] On December 4, 1997, the
Philippines became the third market to
open outside North America with its first
branch located at 6750 Ayala Building in
Makati City, Philippines.[28][29] Starbucks
entered the U.K. market in 1998 with the
US$83 million[30] acquisition of the then
56-outlet, UK-based Seattle Coffee
Company, re-branding all the stores as
Starbucks. In 1999, Starbucks
experimented with eateries in the San
Francisco Bay area through a restaurant
chain called Circadia. After people learned
that these restaurants were owned by
Starbucks, Starbucks converted the
restaurants to Starbucks cafes.[31]
Australia's first Starbucks store opened in
July 2000 in Sydney.[32] After a massive
downturn in 2008, the remaining
Australian Starbucks stores were
purchased in 2014, with the company
planning a more restrained
expansion.[33][34] In September 2002,
Starbucks opened its first store in Latin
America, in Mexico City. Currently, there
are over 500 locations in Mexico.[35] In
October 2002, Starbucks established a
coffee trading company in Lausanne,
Switzerland to handle purchases of green
coffee. All other coffee-related business
continued to be managed from Seattle.[36]
In April 2003, Starbucks completed the
purchase of Seattle's Best Coffee and
Torrefazione Italia from AFC Enterprises
for $72m. The deal only gained 150 stores
for Starbucks, but according to the Seattle
Post-Intelligencer, the wholesale business
was more significant.[37] In September
2006, rival Diedrich Coffee announced that
it would sell most of its company-owned
retail stores to Starbucks, escalating a
regional coffee war. This sale included the
company-owned locations of the Oregon-
based Coffee People chain. Starbucks
converted the Diedrich Coffee and Coffee
People locations to Starbucks, although
the Portland International Airport Coffee
People locations were excluded from the
sale.[38]

In August 2003, Starbucks opened its first

store in South America in Lima, Peru.[39]
The company opened its first store in
Russia in 2007, ten years after first
registering a trademark there.[40] In 2008,
Starbucks purchased the manufacturer of
the Clover Brewing System. They began
testing the "fresh-pressed" coffee system
at several Starbucks locations in Seattle,
California, New York, and Boston.[41]

In early 2008, Starbucks started a

community website, My Starbucks Idea,
designed to collect suggestions and
feedback from customers. Other users
comment and vote on suggestions.
Journalist Jack Schofield noted that "My
Starbucks seems to be all sweetness and
light at the moment, which I don't think is
possible without quite a lot of
censorship."[42] In May 2008, a loyalty
program was introduced for registered
users of the Starbucks Card (previously
simply a gift card) offering perks such as
free Wi-Fi Internet access, no charge for
soy milk and flavored syrups, and free
refills on brewed drip coffee, iced coffee,
or tea.[43] In 2009, Starbucks began beta
testing its mobile app for the Starbucks
card, a stored value system in which
consumers access pre-paid funds to
purchase products at Starbucks.[44]
Starbucks released its complete mobile
platform on January 11, 2011.
On November 14, 2012, Starbucks
announced the purchase of Teavana for
US$620 million in cash;[45] the deal was
formally closed on December 31, 2012.[46]

Graph showing the growth in the number of

Starbucks stores between 1971 and 2011[19]

On February 1, 2013, Starbucks opened its

first store in Ho Chi Minh City,
Vietnam,[47][48][49] and this was followed by
an announcement in late August 2013 that
the retailer would be opening its inaugural
store in Colombia. The Colombian
announcement was delivered at a press
conference in Bogota, where the
company's CEO explained, "Starbucks has
always admired and respected Colombia's
distinguished coffee tradition."[50] In May
2014, the Starbucks operations in South
Korea launched a mobile ordering system
named Siren Order, which is accessible
through a local version of Starbucks
smartphone application.[51][52] In the U.S.
Starbucks later launched a similar system
named Mobile Order & Pay, which
launched in Portland, Oregon in December
2015.[53] The service has since expanded
nationwide, and in late March 2018, the
company opened the system (previously
available to Starbucks Rewards members
only) to all customers.[54][55] In August
2014, Starbucks opened their first store in
Williamsburg, Brooklyn, one of 30
Starbucks stores to offer beer and wine.[56]

In September 2014, it was revealed that

Starbucks would acquire the remaining
60.5 percent stake in Starbuck Coffee
Japan that it does not already own, at a
price of $913.5 million.[57] In August 2015,
Starbucks announced its intention to enter
Cambodia, its 16th market in the
China/Asia Pacific region. The first
location was scheduled to open in the
capital city of Phnom Penh by the end of
2015.[58]

In February 2016, Starbucks announced

that it would enter Italy, its 24th market in
Europe, with the first location to open in
Milan by 2018.[59] In August, startup
company FluxPort introduced Qi inductive
charging pads at select locations in
Germany.[60][61][62] In September 2016,
Starbucks announced a debut of its first-
ever original content series called
"Upstanders" which aimed to inspire
Americans with stories of compassion,
citizenship, and civility. The series featured
podcasts, written word, and video, and was
distributed via the Starbucks mobile app,
online, and through the company's in-store
digital network.[63] On July 27, 2017,
Starbucks acquired the remaining 50%
stake in their Chinese venture from long-
term joint venture partners Uni-President
Enterprises Corporation (UPEC) and
President Chain Store Corporation
(PCSC).[64]

On March 21, 2018, Starbucks announced

that it was considering the use of
blockchain technology with an idea to
connect coffee drinkers with coffee
farmers who eventually can take
advantage of new financial opportunities.
The pilot program was planned to start
with farmers in Costa Rica, Colombia and
Rwanda, in order to develop a new way to
track the bean to cup journey.[65] On June
19, 2018, Starbucks announced the
closing of 150 locations in 2019; three
times the number the corporation typically
closes in a single year. The closings were
to happen in urban areas that already have
dense clusters of stores.[66] In 2018,
Starbucks expanded its partnership with
Uber Eats to bring its beverages to U.S.
customers' doorsteps, as it had already
done for some time in China.[67] In
November 2019, Starbucks opened its
largest store ever on Michigan Avenue,
Chicago. The store is open seven days a
week and has 200 employees.[68]
On March 20, 2020, due to the COVID-19
pandemic, Starbucks decided to close all
the cafe-only stores in the United States
for two weeks. During that time, only drive-
thru- and delivery-only were to function.
According to the company representatives,
all workers were to be paid for the next 30
days whether they went to work or stayed
home.[69] COVID-19 lockdowns caused
Starbucks to suffer a general 10% sales
decrease, and a 50% decrease in China
where quarantine measures were
especially strict.[70]
Corporate governance
Kevin Johnson, who served as president
and chief operating officer from 2015 to
2018, has been the chief executive of
Starbucks since June 2018. Myron Ullman
became the firm's chairman in June 2018.
Both Johnson and Ullman succeeded
Howard Schultz who served in both
capacities from 2008 to 2017.[71] Orin
Smith was President and CEO of
Starbucks from 2001 to 2005 after-which
Jim Donald took over as CEO until
2008.[72] Since 2018, Schultz has served
as the firm's first Chairman emeritus.
Analysts have long believed that the firm's
corporate governance must determine
how to contend with higher materials
prices and enhanced competition from
lower-priced fast-food chains, including
McDonald's and Dunkin' Donuts. In
October 2015, Starbucks hired its first
chief technology officer, Gerri Martin-
Flickinger, to lead its technology team.[73]
Starbucks maintains control of production
processes by communicating with farmers
to secure beans, roasting its own beans,
and managing distribution to all retail
locations. Additionally, Starbucks's Coffee
and Farmer Equity Practices require
suppliers to inform Starbucks what portion
of wholesale prices paid reaches
farmers.[74][75]

Products

A typical retail area, this one in Peterborough,

England, showing a display of food and the beverage
preparation area, 2007
In 1994, Starbucks bought The Coffee
Connection, gaining the rights to use,
make, market, and sell the "Frappuccino"
beverage.[76] The beverage was introduced
under the Starbucks name in 1995 and as
of 2012, Starbucks had annual
Frappuccinos sales of over $2 billion.[76]
The company began a "skinny" line of
drinks in 2008, offering lower-calorie and
sugar-free versions of the company's
offered drinks that use skim milk, and can
be sweetened by a choice of natural
sweeteners (such as raw sugar, agave
syrup, or honey), artificial sweeteners
(such as Sweet'N Low, Splenda, Equal), or
one of the company's sugar-free syrup
flavors.[77][78] Starbucks stopped using
milk originating from rBGH-treated cows in
2007. In June 2009, the company
overhauled its menu and began to sell
salads and baked goods without high
fructose corn syrup or artificial
ingredients.[79] This move was expected to
attract health- and cost-conscious
consumers and will not affect prices.[79]

Starbucks introduced a new line of instant

coffee packets, called VIA "Ready Brew," in
March 2009. It was first unveiled in New
York City with subsequent testing of the
product also in Seattle, Chicago, and
London. The first two VIA flavors include
Italian Roast and Colombia, which were
then rolled out in October 2009, across the
U.S. and Canada with Starbucks stores
promoting the product with a blind "taste
challenge" of the instant versus fresh
roast, in which many people could not tell
the difference between the instant and
freshly brewed coffee. Financial analysts
speculated that by introducing instant
coffee, Starbucks would devalue its own
brand.[80] Starbucks began selling beer and
wine at some US stores in 2010.[81] In
2011, Starbucks introduced its largest cup
size, the Trenta, which can hold 31 US fluid
ounces (920 ml).[82] In September 2012,
Starbucks announced the Verismo, a
consumer-grade single-serve coffee
machine that uses sealed plastic cups of
coffee grounds, and a "milk pod" for
lattes.[83] On November 10, 2011,
Starbucks Corporation announced that it
had bought juice company Evolution Fresh
for $30 million in cash and planned to start
a chain of juice bars starting in around the
middle of 2012, venturing into territory
staked out by Jamba Inc. Its first store
released in San Bernardino, California and
plans for a store in San Francisco were to
be launched in early 2013.[84]

In 2012, Starbucks began selling a line of

iced Starbucks Refresher beverages that
contain an extract from green arabica
coffee beans. The beverages are fruit
flavored and contain caffeine but
advertised as having no coffee flavor.
Starbucks's green coffee extraction
process involves soaking the beans in
water.[85] On June 25, 2013, Starbucks
began to post calorie counts on menus for
drinks and pastries in all of their U.S.
stores.[86] In 2014, Starbucks began
producing their own line of sodas, dubbed
"Fizzio."[87] In 2015, Starbucks began
serving coconut milk as an alternative to
dairy and soy.[88] In March 2017, Starbucks
announced the launch of two new limited-
edition specialty drinks made from beans
aged in whiskey barrels at its Seattle
roastery.[89] Starbucks's barrel-aged coffee
will be sold with a small batch of
unroasted Starbucks Reserve Sulawesi
beans, which are then hand-scooped into
whiskey barrels from Washington D.C.[90]

Name Measurement Notes

Short 8 US fl oz (240 ml) Smaller of the two original sizes

Tall 12 US fl oz (350 ml) Larger of the two original sizes

Grande 16 US fl oz (470 ml) Italian for "large"

20 US fl oz (590 ml) - Hot

Venti Italian for "twenty"
26 US fl oz (770 mL) - Iced

Trenta 30 US fl oz (890 ml) Italian for "thirty"

Tea

A Starbucks food truck in a rest area on the New

Jersey Turnpike, 2018.
Starbucks entered the tea business in
1999 when it acquired the Tazo brand for
US$8,100,000.[91][92] In late 2012,
Starbucks paid US$620 million to buy
Teavana.[46][93] Starbucks does not market
Teavana products in its stores, though the
acquisition allowed the expansion of
Teavana beyond its current main footprint
in shopping malls.[92] In January 2015,
Starbucks began to roll out Teavana teas
into Starbucks stores, both in to-go
beverage and retail formats.[94]
Coffee quality

Kevin Knox, who was in charge of

doughnuts quality at Starbucks from 1987
to 1993, recalled on his blog in 2010 how
George Howell, coffee veteran and founder
of the Cup of Excellence, had been
appalled at the dark roasted beans that
Starbucks was selling in 1990.[41][95]
Talking to the New York Times in 2008,
Howell stated his opinion that the dark
roast used by Starbucks does not deepen
the flavor of coffee, but instead can
destroy purported nuances of flavor.[41]
The March 2007 issue of Consumer
Reports compared American fast-food
chain coffees and ranked Starbucks
behind McDonald's Premium Roast in the
middle of a coffee war. The magazine
called Starbucks coffee "strong, but burnt
and bitter enough to make your eyes water
instead of open."[96] As reported by TIME in
2010, third wave coffee proponents
generally criticize Starbucks for over-
roasting beans.[97] As a result, Starbucks
retrained its baristas and changed their
roasting methods in 2010 in order to
"standardize quality over quantity."[98] The
Atlantic reported that this push for higher-
quality coffee slowed down orders, but
stated "[they] move their product pretty
quickly, and with surprising accuracy."[98]
Forbes corroborated this trade off between
efficiency and quality at Starbucks.[99]
Eight years later, in 2018, Business Insider
conducted a test of their coffee judged by
100 coffee experts.[100] They concluded
that although staples of the menu were
"too sugary", coffee quality materially
improved with particularly strong
showings in the firm's iced coffee and nitro
cold brew offerings.[100] Insider experts,
however, did note that the coffee quality in
Starbucks Reserves far surpassed that of
the typical retail store.[100]

Starbucks Verismo

In 2012, Starbucks introduced Starbucks

Verismo, a line of coffee makers that brew
espresso and regular chocolate from
coffee capsules, a type of pre-apportioned
single-use container of ground coffee and
flavorings utilizing the K-Fee pod
system.[101] In a brief review of the 580
model, Consumer Reports described the
results of a comparative test of the
Verismo 580 against two competitive
brands: "Because you have to conduct a
rinse cycle between each cup, the Verismo
wasn't among the most convenient of
single-serve machines in our coffeemaker
tests. Other machines we've tested have
more flexibility in adjusting brew-strength
—the Verismo has buttons for coffee,
espresso, and latte with no strength
variation for any type. And since Starbucks
has limited its coffee selection to its own
brand, there are only eight varieties so far
plus a milk pod for the latte."[102]
Other products

Starbucks' line of ice cream, 2020

In July 2019, Starbucks announced that it

would no longer be selling newspapers in
its cafes. It was also announced that
kiosks for grab-and-go snacks and bags of
whole-bean coffee would be removed from
stores beginning in September 2019.[103]
Locations
The company's headquarters is located in
Seattle, Washington, United States, where
3,501 people worked as of January
2015.[104] The main building in the
Starbucks complex was previously a Sears
distribution center.

Current

As of May 2020, Starbucks has around

31,256 locations spanning 79 countries
and territories on six continents:[105]
International Presence of Starbucks Coffee (June
2019).
Africa Europe North
Egypt: 32 United America
South Kingdom: United
Africa: 11 884 States:
Germany: 13,352
Morocco: 9
161 Canada:
Tunisia:
France: 121 2,359
1[106]
Asia Russia: 112 Mexico:
China: 3,600 531
Spain: 107
Japan: The
Poland: 72
1,415 Bahamas:
Ireland: 67
12
South
Switzerland:
Korea:
63
1,080 Netherlands: Costa Rica:
Taiwan: 430 59 12

Thailand: Romania: 48 El
410 Greece: 31 Salvador:
11
Turkey: 408 Czech
Republic: 26 Trinidad
Philippines:
and
300 Denmark: 21
Tobago: 9
Indonesia: Austria: 20
Guatemala:
249 Belgium: 19
7
Malaysia: Norway: 17
Jamaica: 7
220
Sweden: 17
Panama: 5
India:
Hungary: 16
157[107] Aruba: 3
Hong Kong: Bulgaria: 14 Curaçao: 3
147 Portugal: 11 Cayman
United Arab Italy: 10 Islands: 1
Emirates: Dominican
Finland: 9
138 Republic: 1
Slovakia: 7
Singapore: Oceania
Luxembourg:
125 Australia:
3
Saudi 35
Serbia: 3
Arabia: 92 New
Andorra: 1
Kuwait: 89 Zealand:
Malta: 1 22
Vietnam: 64
Monaco: 1 South
Lebanon: 41
America
Brazil: 104
Cambodia: Argentina:
21 100
Bahrain: 19 Chile: 91
Qatar: 18 Peru: 81
Kazakhstan: Colombia:
16 24
Jordan: 14 Bolivia: 4
Cyprus: 11 Uruguay: 1
Oman: 11
Azerbaijan:
4
Brunei: 4
Retail expansion

Starbucks Cafe in Warsaw, Poland, 2014

In 2008, Starbucks continued its

expansion, settling in Argentina, Belgium,
Brazil, Bulgaria, the Czech Republic, and
Portugal.[19] European and Scandinavian
expansion continued in 2009 with Poland
(April),[108] Utrecht, Netherlands (August),
and Sweden at Arlanda Airport outside
Stockholm (October).[109] In 2010, growth
in new markets continued. In May 2010,
Southern Sun Hotels South Africa
announced that they had signed an
agreement with Starbucks to brew
Starbucks coffees in select Southern Sun
and Tsonga Sun hotels in South Africa.
The agreement was partially reached so
Starbucks coffees could be served in the
country in time for the 2010 FIFA World
Cup hosted by South Africa.[110] In June
2010, Starbucks opened its first store in
Budapest, Hungary and in November, the
company opened the first Central
American store in El Salvador's capital,
San Salvador.[111]

In December 2010, Starbucks debuted

their first-ever Starbucks at sea, wherewith
a partnership with Royal Caribbean
International; Starbucks opened a shop
aboard their Allure of the Seas Royal
Caribbean's second-largest ship, and also
the second-largest ship in the world.[112] A
partnership with Algerian food company
Cevital will see Starbucks open its first
Algerian store in Algiers.[113] In January
2011, Starbucks and Tata Coffee, Asia's
largest coffee plantation company,
announced plans for a strategic alliance to
bring Starbucks to India and also to source
and roast coffee beans at Tata Coffee's
Kodagu facility.[114] Despite a false start in
2007,[115] in January 2012, Starbucks
created a 50:50 joint venture with Tata
Global Beverages called Tata Starbucks.
Tata Starbucks owned and operated
Starbucks outlets in India as Starbucks
Coffee "A Tata Alliance."[116] Starbucks
opened its first store in India in Mumbai on
October 19, 2012.[117][118][119]
Starbucks at the Forbidden City, Beijing, China, 2005

In February 2011, Starbucks started selling

its coffee in Norway by supplying
Norwegian food shops with their roasts.
The first Starbucks-branded Norwegian
shop opened on February 8, 2012, at Oslo
Airport, Gardermoen. In October 2011,
Starbucks opened another location in
Beijing, China, at the Beijing Capital
International Airport's Terminal 3,
international departures hall; making the
company's 500th store in China. The store
is the 7th location at the airport. The
company planned to expand to 1,500
stores in China by 2015.[120] In May 2012,
Starbucks opened its first coffeehouse in
Finland, with the location being Helsinki-
Vantaa Airport in Vantaa.[121] In June 2012,
Starbucks opened a store in San Jose,
Costa Rica.[122] In October 2012, Starbucks
announced plans to open 1,000 stores in
the United States in the next five years.[123]
The same month, the largest Starbucks in
the US opened at the University of
Alabama's Ferguson Center.[124]

In 2013, Starbucks met with Dansk

Supermarked, which is the biggest retail
company in Denmark. The first Starbucks
inside Dansk Supermarked opened in
August 2013 in the department stores
Salling in Aalborg and Aarhus.[125]
Starbucks has announced its first café in
Bolivia would open in 2014 in Santa Cruz
de la Sierra and the first in Panama in
2015.[126] On June 19, 2015, a Starbucks
opened at Disney's Animal Kingdom on
Discovery Island. Since the park does not
allow plastic straws due to the animals,
this location features special green eco-
friendly straws with their cold drinks.[127]
This was the sixth Starbucks to open in
Walt Disney World, following locations in
the Magic Kingdom (Main Street, U.S.A.),
Epcot (Future World), Disney's Hollywood
Studios (Hollywood Boulevard),[128] and
two in Disney Springs (Marketplace and
West Side). In addition to these six, there
are locations in Disneyland (Main Street,
U.S.A.), Disney California Adventure
(Buena Vista Street), Anaheim's Downtown
Disney, and Disney Village at Disneyland
Paris. The Downtown Disney and Disney
Springs locations are Starbucks-operated,
while the locations inside of the theme
parks are Disney-operated.[129]

Bill Sleeth, Starbucks's vice president of

global design, has overseen efforts to
make a neighborhood feel for new stores,
saying "What you don't want is a customer
walking into a store in downtown Seattle,
walking into a store in the suburbs of
Seattle and then going into a store in San
Jose, and seeing the same store." Sleeth
said "The customers were saying,
'Everywhere I go, there you are,' and not in
a good way. We were pretty ubiquitous." As
part of a change in compact direction,
Starbucks management wanted to
transition from the singular brand
worldwide to focusing on locally relevant
design for each store.[130] Starbucks's first
Channel Island store was opened in early
2015, in the primary business area of St
Peter Port in Guernsey.[131] In 2014
Starbucks was scheduled to open a store
in Azerbaijan, in the Port Baku Mall.[132]
In August 2013, Starbucks's CEO, Howard
Schultz, personally announced the opening
of Starbucks stores in Colombia. The first
café was set to open in 2014 in Bogotá
and add 50 more stores throughout
Colombia's main cities in a 5-year limit.
Schultz also stated that Starbucks will
work with both the Colombian Government
and USAID to continue "empowering local
coffee growers and sharing the value,
heritage and tradition of its coffee with the
world." Starbucks noted that the
aggressive expansion into Colombia was a
joint venture with Starbucks's Latin
partners, Alsea and Colombia's Grupo
Nutresa that has previously worked with
Starbucks by providing coffee through
Colcafe. This announcement comes after
Starbucks's Farmer Support Center was
established in Manizales, Colombia the
previous year making Colombia an already
established country by the corporation.[133]

Starbucks in Toronto, Canada, 2020

On April 21, 2015, Kesko, the second
largest retailer in Finland, announced its
partnership with Starbucks, with stores
opened next to K-Citymarket
hypermarkets.[134] As of June 2017, 3
stores had been opened next to K-
Citymarkets: In Sello in Espoo and in
Myyrmanni and Jumbo in Vantaa.[2] On
December 18, 2015, Starbucks opened in
Almaty, Kazakhstan. On the next day, 1
more coffee shop was opened.[135] The
first Starbucks store in Slovakia opened in
Aupark Shopping Center in Bratislava on
May 31, 2016,[136][137] with two more
stores confirmed to open in Bratislava by
the end of 2016. In February 2016, Howard
Schultz announced the opening of stores
in Italy. The first Italian Starbucks store
was inaugurated in Milan on September 6,
2018.[138] After Taste Holdings acquired
outlet licensing for South African stores,
Starbucks opened its first store in South
Africa in Rosebank, Johannesburg on
Thursday, April 21, 2016, and it is second
in the country at the end of April in Mall of
Africa.[139][140]
In May 2017, Starbucks announced it was
commencing operations in Jamaica,
where the first store is to open in the
resort city of Montego Bay.[141] The
company announced that its first store
would be on located on the shores of the
world-famous Doctor's Cave Beach,
offering views of the Caribbean Sea.[142]
Starbucks Jamaica expects thereafter to
roll out a further 14 locations across the
island by the year 2020. The company also
reaffirmed its commitment to working with
local coffee farmers to "implement
systems to increase productivity and
yields, while also increasing compliance to
international standards."[143] Starbucks
Jamaica officially opened its first store on
November 21, 2017, with plans to open 15
locations islandwide over a 5-year
period.[144] Starbucks Jamaica, recently
opened its 3 stores at the Sangster
International Airport in Montego Bay and
one at the Historic Falmouth Pier, in
Falmouth, Jamaica. Starbucks Jamaica
announced its intention to open 2 stores in
Jamaica's capital city, Kingston in 2018,
with plans for up to 6 stores by 2019.[145]
The first of the Kingston stores opened on
June 21, 2018. The second store is located
in the heart of Kingston's central business
district, New Kingston. Starbucks is also
opening its first in-store location in the
new flagship location for Jamaica's largest
Pharmacy chain, Fontana Pharmacy, also
located in Kingston; making it Starbucks's
third confirmed location.[146] This location
will open in July 2019.

A Starbucks in Seoul, South Korea, 2020

Caribbean Coffee Baristas, franchise-
holders for Starbucks's Jamaican
operations are set to open new stores in
the Cayman Islands and the Turks and
Caicos Islands; up to three stores are
planned for the Caymans and a yet
undisclosed number for the Turks &
Caicos. The first of these stores will be
opened by year-end of 2018.[147] At the end
of December 2017, the world's biggest
Starbucks store opened at HKRI Taikoo
Hui in Shanghai, China. Starbucks
announced the opening of stores in Serbia
in late 2018.[148] The first store was
opened in April 2019 at Rajićeva Mall. On
June 1, 2019, Starbucks opened its first
coffee store in Malta at Valletta. This will
be the 80th country that will have a
Starbucks outlet.[149][150]

Shifting focus in North America

In June 2020, during the COVID-19

pandemic in the United States however,
the company announced that it would
close 400 of its locations in the
US/Canada region over the subsequent 18
months as it moves from the coffee house
concept to what it calls "convenience-led"
formats with drive-thru and curbside
pickup; the new stores will work with the
Starbucks App for pre-payment by the
customer before arrival to pick up the
order. The layout of some stores will also
be modified with a separate counter for
picking up mobile orders. The company
also announced that it planned to open
300 stores that will primarily focus on
carryout and pickup orders.[151][152][153]

Former stores
After losing $6 million on the six
Starbucks[154] opened between 2001 and
2003,[155] and having struggled with fierce
local competition, Starbucks, along with its
partner Delek Group of Israel,[156] closed
all six of its locations in Israel, citing "on-
going operational challenges" and a
"difficult business environment."[157][158]
The Starbucks location in the former
imperial palace in Beijing closed in July
2007. The coffee shop had been a source
of ongoing controversy since its opening
in 2000 with protesters objecting that the
presence of the American chain in this
location "was trampling on Chinese
culture."[159][160] In July 2008, the company
announced it was closing 600
underperforming company-owned stores
and cutting U.S. expansion plans amid
growing economic uncertainty.[161][162] On
July 29, 2008, Starbucks also cut almost
1,000 non-retail jobs as part of its bid to re-
energize the brand and boost its profit. Of
the new cuts, 550 of the positions were
layoffs and the rest were unfilled jobs.[163]
These closings and layoffs effectively
ended the company's period of growth and
expansion that began in the mid-1990s.
Starbucks also announced in July 2008
that it would close 61 of its 84 stores in
Australia in the following month.[164] Nick
Wailes, an expert in strategic management
of the University of Sydney, commented
that "Starbucks failed to truly understand
Australia's cafe culture."[165] In May 2014,
Starbucks announced ongoing losses in
the Australian market, which resulted in
the remaining stores being sold to the
Withers Group.[166] In January 2009,
Starbucks announced the closure of an
additional 300 underperforming stores and
the elimination of 7,000 positions. CEO
Howard Schultz also announced that he
had received board approval to reduce his
salary.[167] Altogether, from February 2008
to January 2009, Starbucks terminated an
estimated 18,400 U.S. jobs and began
closing 977 stores worldwide.[168] In
August 2009, Ahold announced closures
and rebranding for 43 of their licensed
store Starbucks kiosks for their US based
Stop & Shop and Giant
supermarkets.[169][170] In July 2012, the
company announced that they may begin
closing unprofitable European stores
immediately.[171]
Unbranded stores

Roy Street Coffee & Tea in Seattle, an example of a

stealth Starbucks, 2016

In 2009, at least three stores in Seattle

were de-branded to remove the logo and
brand name, and remodel the stores as
local coffee houses "inspired by
Starbucks."[172][173] CEO Howard Schultz
called the unbranded stores a "laboratory
for Starbucks".[174] The first, 15th Avenue
Coffee and Tea, opened in July 2009 on
Capitol Hill. It served wine and beer and
hosted live music and poetry readings.[175]
It has since been remodeled and reopened
as a Starbucks-branded store. Another is
Roy Street Coffee and Tea at 700
Broadway E., also on Capitol Hill. Although
the stores have been called "stealth
Starbucks"[172][176] and criticized as "local-
washing,"[177] Schultz says that "It wasn't
so much that we were trying to hide the
brand, but trying to do things in those
stores that we did not feel were
appropriate for Starbucks."[174]

Licensed and franchise operations

Independently operated Starbucks

locations exist. Stores that independently
operate locations include Ahold Delhaize,
Barnes & Noble, Target, Albertsons and,
more recently, Publix stores. As of 2015,
4,962 licensed locations exist.[178] In the
EMEA (Europe, Middle East, and Africa)
markets, Starbucks operates a franchising
program. Different from the licensing
program in which existing corporations
may apply to operate a Starbucks kiosk
within an existing store, franchises can
enable new, freestanding stores.

Automated locations

Starbucks has automated systems in

some areas. These machines have 280
possible drink combinations to choose
from. They have touchscreens and
customers can play games while they wait
for their order.[179]
Facilities

Starbucks in İzmir, Turkey, 2012

Free Wi-Fi Internet access varies in

different regions. In Germany, customers
get unlimited free Wi-Fi through BT
Openzone, and in Switzerland and Austria,
customers can get 30 minutes with a
voucher card (through T-Mobile). Since
2003, Starbucks in the UK rolled out a paid
Wi-Fi based on one-time, hourly or daily
payment. Then, in September 2009, it was
changed to 100% free Wi-Fi at most of its
outlets. Customers with a Starbucks Card
are able to log-on to the Wi-Fi in-store for
free with their card details, thereby
bringing the benefits of the loyalty
program in line with the United States.[180]
Since July 2010, Starbucks has offered
free Wi-Fi in all of its US stores via AT&T
and information through a partnership with
Yahoo!. This is an effort to be more
competitive against local chains, which
have long offered free Wi-Fi, and against
McDonald's, which began offering free
wireless internet access in 2010.[181] On
June 30, 2010, Starbucks announced it
would begin to offer unlimited and free
Internet access via Wi-Fi to customers in
all company-owned locations across
Canada starting on July 1, 2010.[182]

In October 2012, Starbucks and Duracell

Powermat announced a pilot program to
install Powermat charging surfaces in the
tabletops in selected Starbucks stores in
the Boston area.[183] Furthermore,
Starbucks announced its support in the
Power Matters Alliance (PMA) and its
membership in the PMA board, along with
Google and AT&T, in an effort to create "a
real-world ecosystem of wireless power"
through a universal wireless charging
standard that customers could use to
recharge smartphones.[184]

Advertising

Logo
1971–
1987

1987–
1992

1992–
2011
2011–
present

In 2006, Valerie O'Neil, a Starbucks

spokeswoman, said that the logo is an
image of a "twin-tailed mermaid, or siren
as she's known in Greek mythology."[185]
The logo has been significantly
streamlined over the years. In the first
version,[186] the Starbucks siren was
topless and had a fully visible double fish
tail.[187] The image also had a rough visual
texture and has been likened to a
melusine.[188] The image is said by
Starbucks to be based on a 16th-century
"Norse" woodcut, although other scholars
note that it is apparently based on a 15th-
century woodcut in J.E. Cirlot's Dictionary
of Symbols.[189][190] In the second version,
which was used from 1987–92, her
breasts were covered by her flowing hair,
but her navel was still visible.[191] The fish
tail was cropped slightly, and the primary
color was changed from brown to green, a
nod to the Alma Mater of the three
founders, the University of San
Francisco.[192][193] In the third version, used
between 1992 and 2011, her navel and
breasts are not visible at all, and only
vestiges remain of the fish tails. The
original "woodcut" logo has been moved to
the Starbucks's Headquarters in Seattle.

At the beginning of September 2006 and

then again in early 2008, Starbucks
temporarily reintroduced its original brown
logo on paper hot-drink cups. Starbucks
has stated that this was done to show the
company's heritage from the Pacific
Northwest and to celebrate 35 years of
business. The vintage logo sparked some
controversy due in part to the siren's bare
breasts,[194] but the temporary switch
garnered little attention from the media.
Starbucks had drawn similar criticism
when they reintroduced the vintage logo in
2006.[195] The logo was altered when
Starbucks entered the Saudi Arabian
market in 2000 to remove the siren, leaving
only her crown,[196] as reported in a
Pulitzer Prize-winning column by Colbert I.
King in The Washington Post in 2002. The
company announced three months later
that it would be using the international
logo in Saudi Arabia.[197] In January 2011,
Starbucks announced that they would
make small changes to the company's
logo, removing the Starbucks wordmark
around the siren, enlarging the siren
image, and making it green.[198]

Partnerships

Starbucks has agreed to a partnership

with Apple to collaborate on selling music
as part of the "coffeehouse experience." In
October 2006, Apple added a Starbucks
Entertainment area to the iTunes Store,
selling music similar to that played in
Starbucks stores. In September 2007,
Apple announced that customers would be
able to browse the iTunes Store at
Starbucks via Wi-Fi in the US—with no
requirement to log into the Wi-Fi network—
targeted at iPhone, iPod touch, iPad, and
MacBook users. The iTunes Store will
automatically detect recent songs playing
in a Starbucks and offer users the
opportunity to download the tracks. Some
stores feature LCD screens with the artist
name, song, and album information of the
current song playing. This feature has
been rolled out in Seattle, New York City,
and the San Francisco Bay Area, and was
offered in limited markets during 2007–
2008.[199] During the fall of 2007,
Starbucks also began to sell digital
downloads of certain albums through
iTunes. Starbucks gave away 37 different
songs for free download through iTunes as
part of the "Song of the Day" promotion in
2007, and a "Pick of the Week" card is now
available at Starbucks for a free song
download. Since 2011, Starbucks also
gives away a "Pick of the Week" card for
app downloads from the App Store. A
Starbucks app is available in the iPhone
App Store.

Starting on June 1, 2009, the MSNBC

morning news program Morning Joe has
been presented as "brewed by Starbucks"
and the show's logo changed to include
the company logo. Although the hosts
have previously consumed Starbucks
coffee on air "for free" in the words of
MSNBC president Phil Griffin, it was not
paid placement at that time.[200] The move
was met with mixed reactions from rival
news organizations, viewed as both a
clever partnership in an economic
downturn and a compromise of
journalistic standards.[201] Starbucks and
Kraft Foods entered into a partnership in
1998 to sell Starbucks products in the
Mondelez grocery stores owned by the
latter. Starbucks claimed that Kraft did not
sufficiently promote its products and
offered Kraft US$750 million to terminate
the agreement; however, Kraft declined the
offer, but Starbucks proceeded with the
termination anyway. Starbucks wanted to
terminate the agreement because at the
time, single coffee packs were beginning
to become popular. In their agreement,
Starbucks was confined to selling packs
that only worked in Kraft's Tassimo
machines. Starbucks didn't want to fall
behind in the market opportunities for k
cups.[202] In mid-November 2013, an
arbitrator ordered Starbucks to pay a fine
of US$2.8 billion to Kraft spin-off
Mondelez International for its premature
unilateral termination of the
agreement.[203][204][205]
In June 2014, Starbucks announced a new
partnership with Arizona State University
(ASU) that would allow Starbucks
employees in their Junior and Senior years
of college to complete four years of
college at Arizona State University's online
program for only around 23K. Starbucks
employees admitted into the program will
receive a scholarship from the college,
College Achievement Plan (CAP), that will
cover 44% of their tuition. The remaining
balance and all other expenses would be
paid by the student or through traditional
financial aid. In April 2015, Starbucks and
ASU announced an expansion of the
College Achievement Program. The
program would now allow all eligible part-
time and full-time employees working in a
U.S. Starbucks to enroll in the program for
full-tuition reimbursement.[206] After the
completion of each semester, Starbucks
reimburses the student their portion of the
tuition. The student can then use the
reimbursement to pay any loans or debt
incurred during the semester.[207]

In 2015, Starbucks signed a deal with

PepsiCo to market and distribute
Starbucks products in several Latin
American countries for 2016.[208] In May
2015, Starbucks entered a partnership
with music streaming service Spotify. The
partnership entailed giving U.S.-based
employees a Spotify premium subscription
and to help influence the music played in
store via playlists made using Spotify.
Starbucks was also given its own curated
Spotify playlist to be featured on Spotify's
mobile app.[209] In March 2020, Starbucks
announced that starting from April 6, their
employees could use up to 2 free mental
health therapy sessions for themselves or
their family members, like a
partner/spouse or children. They can meet
with a counselor face-to-face or video call
and will also have unlimited access to self-
care apps through Lyra Health Inc.[210]

Parodies and infringements

Cartoonist Kieron Dwyer's first LCD issue, 2000.

Starbucks has been a target of parodies
and imitations of its logo, particularly the
1992 version, and has used legal action
against those it perceives to be infringing
its intellectual property. In 2000, San
Francisco cartoonist Kieron Dwyer was
sued by Starbucks for copyright and
trademark infringement after creating a
parody of its siren logo and putting it on
the cover of one of his comics, later
placing it on coffee mugs, T-shirts, and
stickers that he sold on his website and at
comic book conventions. Dwyer felt that
since his work was a parody it was
protected by his right to free speech under
U.S. law. The case was eventually settled
out of court, as Dwyer claimed he did not
have the financial ability to endure a trial
case with Starbucks. The judge agreed
that Dwyer's work was a parody and thus
enjoyed constitutional protection; however,
he was forbidden from financially
"profiting" from using a "confusingly
similar" image of the Starbucks siren logo.
Dwyer was allowed to display the image as
an expression of free speech, but he can
no longer sell it.[211] In a similar case, a
New York store selling stickers and T-
shirts using the Starbucks logo with the
phrase "Fuck Off" was sued by the
company in 1999.[212][213] An anti-
Starbucks website, starbuckscoffee.co.uk,
which encouraged people to deface the
Starbucks logo[214] was transferred to
Starbucks in 2005,[215][216] but has since
resurfaced at
www.starbuckscoffee.org.uk. Christian
bookstores and websites in the US are
selling a T-shirt featuring a logo with the
siren replaced by Jesus and the words
"Sacrificed for me" around the edge.[217]
Other successful cases filed by Starbucks
include the case won in 2006 against the
chain Xingbake in Shanghai, China for
trademark infringement, because the chain
used a green-and-white circular logo with a
name that sounded phonetically similar to
the Chinese for Starbucks.[218] Starbucks
did not open any stores after first
registering its trademark in Russia in 1997,
and in 2002 a Russian lawyer successfully
filed a request to cancel the trademark. He
then registered the name with a Moscow
company and asked for $600,000 to sell
the trademark to Starbucks, but was ruled
against in November 2005.[40] In 2003,
Starbucks sent a cease-and-desist letter to
"HaidaBucks Coffee House" in Masset,
British Columbia, Canada. The store was
owned by a group of young Haida men,
who claimed that the name was a
coincidence, due to "buck" being a Haida
word for "young man" (a claim that cannot
be substantiated). After facing criticism,
Starbucks dropped its demand after
HaidaBucks dropped "coffee house" from
its name.[219] In the 2004 DreamWorks
Animation film Shrek 2, Starbucks is
parodied as Farbucks in the kingdom of
Far Far Away, which in turn, is a parody of
a medieval version of Hollywood,
California.

Sam Buck Lundberg, who owns a coffee

store in Oregon, was prohibited from using
"Sambuck's Coffee" on the shop front in
2006.[220] Starbucks lost a trademark
infringement case against a smaller coffee
vendor in South Korea that operates coffee
stations under the name Starpreya. The
company, Elpreya, says Starpreya is
named after the Norse goddess, Freja, with
the letters of that name changed to ease
pronunciation by Koreans. The court
rejected Starbucks's claim that the logo of
Starpreya is too similar to their own
logo.[221] A bar owner in Galveston, Texas,
USA[222] won the right to sell "Star Bock
Beer" after a lawsuit by Starbucks in 2003
after he registered the name,[222] but the
2005 federal court ruling also stated that
the sale of the beer must be restricted to
Galveston, a ruling upheld by the Supreme
Court in 2007.
A line outside "Dumb Starbucks" on February 9, 2014.

Ongoing cases include a dispute over the

copyright application for Seattle's Rat City
Rollergirls logo in 2008.[223] The company
claimed the roller derby league's logo by a
Washington artist[224] was too similar to its
own. Starbucks requested an extension to
further examine the issue and possibly
issue a complaint, which was granted by
the Trademark Office. The July 16, 2008,
deadline passed without action by the
corporation.[225] Starbucks launched
action against an Indian cosmetics
business run by Shahnaz Husain, after she
applied to register the name Starstruck for
coffee and related products. She said she
aimed to open a chain of stores that would
sell coffee and chocolate-based
cosmetics.[226] A cafe in Al-Manara
Square,[227] Ramallah, Palestinian
Territories, opened in 2009 with the name
"Stars and Bucks" and a logo using a
similar green circle and block lettering.[228]
Like Starbucks, the Stars and Bucks serves
cappuccinos in ceramic cups, and offers
free Wifi. According to speculation cited in
the Seattle Post Intelligencer, the cafe's
name and imitation Starbucks style may
be a political satire of American
consumerism. Starbucks is not known to
have taken action against this business.

In 2014, Nathan Fielder, a Canadian

comedian behind the hit show Nathan for
You, opened a store called "Dumb
Starbucks Coffee" in Los Feliz, Los
Angeles CA. The store resembled a typical
Starbucks with one exception: everything
was preceded by the word "dumb." For
example, the drinks he carried included
Dumb Skinny Vanilla Lattes and Dumb
Frapuccinos.[229] The store carried music
titled "Dumb Jazz Standards" and "Dumb
Norah Jones Duets."[230] He thought he
could bypass infringement and copyright
claims through the "Parody Law," referring
to the parody aspect of Fair Use laws (that
protect parodists such as "Weird Al"
Yankovic and SNL). No lawsuits were filed
though because the store was short-lived.
The Los Angeles Health Department shut
it down after 4 days because Fielder
lacked the proper permits.[231][232] Others
have used the Starbucks logo unaltered
and without permission, such as a café in
Pakistan that used the logo in 2003 in its
advertisements[233] and a cafe in
Cambodia in 2009, the owner saying that
"whatever we have done we have done
within the law."[234]

Environmental and social

policies

Environmental impact
Starbucks in Frankfurt, Germany, 2004

In 1999, Starbucks started "Grounds for

your Garden" to make their business
environmentally friendlier. This gives
leftover coffee grounds to anyone
requesting it for composting. Although not
all stores and regions participate,
customers can request and lobby their
local store to begin the practice. In
October 2008, The Sun newspaper
reported that Starbucks was wasting 23.4
million liters (6.2 million US gal) of water a
day by leaving a tap constantly running for
rinsing utensils in a 'dipper well' in each of
its stores, but this is often required by
governmental public health code.[235]

In June 2009, in response to concerns over

its excessive water consumption,
Starbucks re-evaluated its use of the
dipper well system. In September 2009,
company-operated Starbucks stores in
Canada and the United States successfully
implemented a new water saving solution
that meets government health standards.
Different types of milk are given a
dedicated spoon that remains in the
pitcher and the dipper wells were replaced
with push button metered faucets for
rinsing. This will reportedly save up to
150 US gal (570 l) of water per day in every
store.[236]

Recycling

Starbucks began using 10% recycled paper

in its beverage cups in 2006—the company
claimed that the initiative was the first
time that recycled material had been used
in a product that came into direct contact
with a food or beverage.[237] Allen
Hershkowitz of the Natural Resources
Defense Council called the 10% content
"minuscule,"[237] but Starbucks received
the National Recycling Coalition Recycling
Works Award in 2005 for the initiative.[238]
In a 2008 media article, Starbucks's vice
president of corporate social responsibility
acknowledged that the company
continued to struggle with environmental
responsibility, as none of its cups were
recyclable and stores did not have
recycling bins. At the time that the article
was published, Starbucks gave customers
who brought in their own reusable cup a
10-cent discount, in addition to using
corrugated cup sleeves made from 85
percent post-consumer recycled fiber,
which is 34 percent less paper than the
original. During the same period,
Starbucks entered into a partnership with
Conservation International—pledging
US$7.5 million over three years—to help
protect the natural environment of coffee-
growing communities in Mexico and
Indonesia.[239]
Farmer equity practices

Starbucks began drafting plans for

corporate social responsibility in 1994.[240]
Since Starbucks has partnered with
Conservation International (CI) to draft
plans and audit its coffee and farmer
equity (C.A.F.E.) program,[241] Starbucks's
C.A.F.E. practices are based on a rating
system of 249 indicators. Farmers who
earn high overall scores receive higher
prices than those who achieve lower
scores. Ratings categories include
economic accountability, social
responsibility, environmental leadership in
coffee growing and processing. Indicators
for social responsibility have evolved and
now include 'zero tolerance' indicators that
require workers to be paid in cash, check,
or direct deposit, ensure that all workers
are paid the established minimum wage,
that workplaces are free of harassment
and abuse, that workplaces are
nondiscriminatory and do not employ
persons under the age of 14, and several
more.[242] Starbucks has moved 90% of its
coffee purchases to preferred C.A.F.E.
certified providers, and the company is
approaching its stated goal to purchase
100% of its coffee through C.A.F.E. or
other 'ethically sourced' certification
systems.[241]

Washington State University Assistant

Professor Daniel Jaffee argues that
Starbucks's C.A.F.E. practices merely
'green wash' "to burnish their corporate
image."[243] Additionally, Professor Marie-
Christine Renard of Rural Sociology of
Chapingo University in Mexico wrote a
case study of Starbucks's, Conservation
International's, and Agro-industries United
of Mexico (AMSA)'s joint conservation
effort in Chiapas, Mexico in which she
concluded that "[w]hile the CI-Starbucks-
AMSA Alliance paid better prices, it did not
allow the producers to appropriate the
knowledge that was necessary for the
organizations to improve the quality of
their coffee."[244]

Fair trade
Fair trade coffee beans, pictured here being sorted in
2007, have made up the majority of Starbucks'
imports from coffee-producing countries.

In 2000, the company introduced a line of

fair trade products.[245] Of the
approximately 136,000 tons (300 million
pounds) of coffee Starbucks purchased in
2006, about 18 million pounds or 6% was
certified as fair trade.[246] According to
Starbucks, they purchased 2,180 metric
tons (4.8 million pounds) of Certified Fair
Trade coffee in fiscal year 2004 and 5,220
metric tons (11.5 million pounds) in 2005.
As of 2006 they were the largest buyer of
Certified Fair Trade coffee in North
America (10% of the global market).
Transfair USA.[247] All espresso roast sold
in the UK and Ireland is Fairtrade.[248]
Questions have been raised regarding the
legitimacy of the Fair Trade
designation.[249] Groups such as Global
Exchange are calling for Starbucks to
further increase its sales of fair trade
coffees.[250] According to Starbucks, in
2004 it paid on average $1.42 per pound
($2.64 kg) for high-quality coffee beans,
74% above the commodity prices at the
time.[251]

After a long-running dispute between

Starbucks and Ethiopia, Starbucks agreed
to support and promote Ethiopian coffees.
An article in BBC News,[252] states that
Ethiopian ownership of popular coffee
designations such as Harrar and Sidamo
is acknowledged, even if they are not
registered. Ethiopia fought hard for this
acknowledgement mainly to help give its
poverty-stricken farmers a chance to make
more money. In 2006, Starbucks said it
paid $1.42 per pound for its coffee. The
coffee Starbucks bought for $1.42 per
pound, had a selling price—after
transportation, processing, marketing,
store rentals, taxes, and staff salary and
benefits—of $10.99 per pound.[253] As of
2013, the Starbucks website sells only one
Ethiopian coffee.[254][255] In addition,
Starbucks is an active member of the
World Cocoa Foundation.
Ethos water

Ethos, a brand of bottled water acquired by

Starbucks in 2003, is sold at locations
throughout North America. Ethos bottles
feature prominent labeling stating "helping
children get clean water," referring to the
fact that US$0.05 from each US$1.80
bottle sold (US$0.10 per bottle in Canada)
is used to fund clean water projects in
under-developed areas. Although sales of
Ethos water have raised over US$6.2
million for clean water efforts, the brand is
not incorporated as a charity. Critics have
argued that the claim on the label
misleads consumers into thinking that
Ethos is primarily a charitable organization
when it is actually a for-profit brand and
the vast majority of the sale price (97.2%)
does not support clean-water
projects.[256][257] The founders of Ethos
have stated that the brand is intended to
raise awareness of third-world clean water
issues and provide socially responsible
consumers with an opportunity to support
the cause by choosing Ethos over other
brands.[258] Starbucks has since
redesigned the American version of the
Ethos water bottles, stating the amount of
money donated per bottle in the
description.

Food bank donations

Since 2010, Starbucks has been donating

leftover pastries in the United States to
local food banks through a food collection
service named Food Donation
Connection.[259] In March 2016, Starbucks
unveiled a five-year plan to donate 100
percent of unsold food from its 7,600
company-operated stores in the U.S. to
local food banks and pantries.[260]
Perishable food will be transported in
refrigerated trucks to area food banks
through the company's partnerships with
the Food Donation Connection and
Feeding America. This program, called
FoodShare, is expected to provide up to 50
million meals over the next five years.[261]
As of 2017, the program was in 10
different markets, including New York
City.[262] In New York, Starbucks works
with Feeding America and City Harvest,
both non-profits, to donate food from 45
locations. It plans to expand the program
to all 305 Manhattan stores. In September
2019, 60% of Starbucks stores are
participating in FoodShare. This level of
participation contributed to 20 million
meals served to those in need. [263]

2020 plastic straw ban

On July 9, 2018, the Starbucks President

and CEO, Kevin Johnson announced that
Starbucks will ban the single-use plastic
straws by January 1st, 2020 on all cold
drinks from all locations worldwide due to
climate change concerns, pollution, and
sea turtle endangerment as the single-use
plastic straws failed to be designed for
recycling when they were invented. The
frappucinos will get straws made from a
different material that is sustainable and
environmentally friendly such as paper or
compostable plastic, while other cold
drinks will get straw-less lids. However, the
new lids will actually have more plastic
than the old lid-straw combination but they
are recyclable unlike the old lid-single-use
straw combination.[264] The Starbucks
locations in Europe, China, Taiwan, Japan,
Thailand, Vietnam, India, Canada, Hawaii,
Alaska, Washington D.C., New Mexico,
California, New York, Washington State,
New Jersey, Oregon, Maryland, Delaware,
Vermont, Massachusetts, Connecticut, and
Rhode Island already took effect of the
change/plastic straw ban by the end of
2018.[265][266] South Korea is the first
country to introduce paper straws to all
stores among 78 countries in the world
that Starbucks has entered.[267]

Music, film, and television

Starbucks's Hear Music Coffeehouse in downtown
San Antonio, Texas, 2006

Hear Music began as a music catalog

company in 1990, adding a few retail
locations in the San Francisco Bay Area.
Hear Music was purchased by Starbucks
in 1999.[268] In 2002, they produced a
Starbucks opera album, featuring artists
such as Luciano Pavarotti, followed in
March 2007 by the hit CD "Memory Almost
Full" by Paul McCartney, making
McCartney the first artist signed to the
new Hear Music label sold in Starbucks
outlets.[269] In 2006, the company created
Starbucks Entertainment, one of the
producers of the 2006 film Akeelah and the
Bee. Retail stores advertised the film
before its release and sold the DVD.[270]

Starbucks has become the subject of a

protest song, "A Rock Star Bucks a Coffee
Shop" by Neil Young and his band, Promise
of the Real. This single from the album The
Monsanto Years criticized both Starbucks's
alleged use of genetically modified food
and the GMO company Monsanto.[271][272]

See also
Coffee culture
Coffee wars
Criticism of Starbucks
List of coffee companies
List of coffeehouse chains
List of companies based in Seattle
Multinational corporation
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Further reading
Behar, Howard with Janet Goldstein.
(2007). It's Not About the Coffee:
Leadership Principles from a Life at
Starbucks, 208 pages. ISBN 1-59184-
192-5.
Clark, Taylor. (2007). Starbucked: A
Double Tall Tale of Caffeine, Commerce
and Culture. 336 pages. ISBN 0-316-
01348-X.
Michelli, Joseph A. (2006). The
Starbucks experience: 5 principles for
turning ordinary into extraordinary, 208
pages. ISBN 0-07-147784-5.
Pendergrast, Mark (2001) [1999].
Uncommon Grounds: The History of
Coffee and How It Transformed Our
World. London: Texere. ISBN 1-58799-
088-1.
Schultz, Howard. and Dori Jones Yang.
(1997). Pour Your Heart Into It: How
Starbucks Built a Company One Cup at a
Time, 350 pages. ISBN 0-7868-6315-3.
Simon, Bryant. (2009). Everything but the
Coffee: Learning about America from
Starbucks. 320 pages. ISBN 0-520-
26106-2.
Media
"How Starbucks Became An $80B
Business" . CNBC. January 10, 2019.
"Why Starbucks Failed In Australia" .
CNBC. June 26, 2018.
"Why Starbucks Is Struggling In South
Africa" . CNBC. October 23, 2019.

External links
Official website
Business data for Starbucks:
 Google Finance • Yahoo! Finance •

SEC filings
Media related to Starbucks at
Wikimedia Commons

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