Starbucks

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For other uses, see Starbuck (disambiguation).
Starbucks Corporation

Type Public (NASDAQ: SBUX)

Restaurants
Retail coffee and tea
Industry
Retail beverages
Entertainment
Founded Pike Place Market in Seattle, Washington (March 30, 1971)
Jerry Baldwin
Founder(s) Gordon Bowker
Zev Siegl
Headquarters Seattle, Washington, U.S.
Number of locations 16,858 (FY 2010)[1]
Area served 50 countries
Howard Schultz, Chairman, President and CEO
Key people Troy Alstead, CFO
Stephen Gillett, CIO
Whole bean coffee
Boxed tea
Made-to-order beverages
Bottled beverages
Products
Baked goods
Merchandise
Frappuccino beverages
Smoothies
Services Coffee
Revenue US$10.71 billion (FY 2010)[1]
Operating income US$1.42 billion (FY 2010)[1]
Net income US$945.6 million (FY 2010)[1]
Total assets US$6.38 billion (FY 2010)[1]
Total equity US$3.68 billion (FY 2010) [1]
Employees 137,000 (2010)[2]
Starbucks Coffee Company
Tazo Tea Company
Seattle's Best Coffee
Subsidiaries
Torrefazione Italia
Hear Music
Ethos Water
Website starbucks.com

Starbucks Corporation (NASDAQ: SBUX) is an international coffee and coffeehouse chain

based in Seattle, Washington.

Starbucks is the largest coffeehouse company in the world, with over 16,858 stores in 50
countries, including over 11,000 in the United States, over 1000 in Canada, and over 700 in
the UK.

Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks,
coffee beans, salads, hot and cold sandwiches and panini, 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 later forms 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-'90s, and overseas stores now constitute almost one third of
Starbucks' stores. The company planned to open a net of 900 new stores outside of the United
States in 2009, but has announced 900 store closures in the United States since 2008.

Starbucks has been a target of protests on issues such as fair-trade policies, labor relations,
environmental impact, political views, and anti-competitive practices.

History
The Starbucks store at 1912 Pike Place. This is the second location of the original Starbucks,
which was at 2000 Western Avenue from 1971 to 1976.

Baristas work inside the world's first Starbucks.

Founding

The first Starbucks was 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 entrepreneur Alfred Peet (whom they knew personally) to sell high-
quality coffee beans and equipment.[6] The name is taken from Moby-Dick; after Pequod was
rejected by one of the co-founders, the company was named for the first mate on the Pequod,
Starbuck.

From 1971–1975, the first Starbucks was at 2000 Western Avenue; it then was relocated to
1912 Pike Place, where it remains to this day. During their first year of operation, they
purchased green coffee beans from Peet's, then began buying directly from growers.
The Starbucks Center, Seattle. The company HQ, in the old Sears, Roebuck and Co. catalog
distribution center building

Entrepreneur Howard Schultz joined the company in 1982 as Director of Retail Operations
and Marketing, and after a trip to Milan, Italy, advised that the company should sell coffee
and espresso drinks as well as beans. Even though Seattle had become home to a thriving
countercultural coffeehouse scene since the opening of the Last Exit on Brooklyn in 1967, the
owners rejected this idea, believing that getting into the beverage business would distract the
company from its primary focus. To them, coffee was something to be prepared in the home,
but they did give away free samples of pre-made drinks. Certain that there was money to be
made selling pre-made drinks, Schultz started the Il Giornale coffee bar chain in April 1986.[7]

Sale and expansion

In 1984, the original owners of Starbucks, led by Baldwin, took the opportunity to purchase
Peet's (Baldwin still works there). In 1987, they sold the Starbucks chain to Schultz's Il
Giornale, which rebranded the Il Giornale outlets as Starbucks and quickly began to expand.
Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British
Columbia, and Chicago, Illinois, that same year. At the time of its initial public offering on
the stock market in 1992, Starbucks had grown to 165 outlets.

International expansion

Currently Starbucks is present in more than 55 countries.

Africa North America Oceania South America Asia Europ

• Egy • El • Australia • Argent • Bahrai • A
pt Salvador ina n a
• Canada • New • Brazil • China • B
• Mexico Zealand • Chile o m
• Puerto • B
 Rico Ho ia
• The • Peru ng • C
Bahamas Ko Repu
ng • D
• United o rk
States Ma • F
ca • G
u ny
• Taiwa • G
n • C
• Indone • H
sia ry
• Japan • I
• Jordan • N
• Leban land
on • P
• Kuwai • P
t al
• Malays • R
ia ia
• Oman • R
• Philipp • S
ines • S
• Qatar n
• Saudi • S
Arabia land
• Singap • T
ore • U
• South King
Korea
International presence of Starbucks stores • Thaila o
nd
• The
Emirates
• Vietna
m
• India

Former locations

• Israel

The first Starbucks location outside North America opened in Tokyo, Japan, in 1996.
Starbucks entered the U.K. market in 1998 with the $83 million[8] 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, in Mexico City. In
November 2010, Starbucks opened the first Central American store in El Salvador's capital,
San Salvador.[9]

In April 2003, Starbucks completed the purchase of Seattle's Best Coffee and Torrefazione
Italia from AFC Enterprises, bringing the total number of Starbucks-operated locations
worldwide to more than 6,400. On September 14, 2006, rival Diedrich Coffee announced that
it would sell most of its company-owned retail stores to Starbucks. This sale includes 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 airport
Coffee People locations were excluded from the sale.[10]

Many bookstores have Starbucks licensed stores within them, including Barnes & Noble in
the United States, Chapters-Indigo in Canada, Livraria Saraiva and Fnac in Brazil and B2S in
Thailand.

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."[11][12][13][14] Also in 2007, Starbucks cancelled plans to expand into India,[15]
but opened its first store in Russia, ten years after first registering a trademark there.[16] In
2008, Starbucks continued its expansion, settling in Argentina, Bulgaria, the Czech Republic
and Portugal.[17] In Buenos Aires, the biggest Starbucks store in Latin America was opened. In
April 2009, Starbucks entered Poland.[18] New stores will be opened in Algeria.[19] Starbucks
has also opened its doors on 5 August 2009, in Utrecht, Netherlands. On October 21, 2009 it
was announced that Starbucks will finally establish in Sweden, starting with a location at
Arlanda airport outside Stockholm.[20] On June 16, 2010 Starbucks opened its first store in
Budapest, Hungary.

In May 2010, Southern Sun Hotels South Africa announced that they had signed an agreement
with Starbucks that would enable them to brew Starbucks coffees in select Southern Sun and
Tsonga Sun hotels in South Africa. The agreement was partially reached in order for
Starbucks coffees to be served in the country in time for the commencement of the 2010 FIFA
World Cup hosted by South Africa.[21]

Starbucks is planning to open its third African location, after Egypt and South Africa, in
Algeria. A partnership with Algerian food company Cevital will see Starbucks open its first
Algerian store in Algiers.[19]

In January, 2011, Starbucks and Tata Coffee, Asia's largest coffee plantation company,
announced plans for a strategic alliance to bring Starbucks to India later that year. Starbucks
plans set up stores in Tata retail locations and hotels in India, and also to source and roast
coffee beans at Tata Coffee's Kodagu facility.[22]
 •

Starbucks at West Coast Plaza, Singapore

Starbucks in İzmir, Turkey

One Starbucks location in Hong Kong uses a retro Bing Sutt design

Starbucks in Angeles City, Philippines

Restaurant experiment

In 1999, Starbucks experimented with eateries in the San Francisco Bay area through a
restaurant chain called Circadia.[23] These restaurants were soon "outed" as Starbucks
establishments and converted to Starbucks cafes.

Corporate governance
Howard Schultz, CEO of Starbucks

Orin C. Smith was President and CEO of Starbucks from 2001 to 2005.

Starbucks' chairman, Howard Schultz, has talked about making sure growth does not dilute
the company's culture[24] and the common goal of the company's leadership to act like a small
company.

In January 2008, Chairman Howard Schultz resumed his roles as President and CEO after an
eight year hiatus, replacing Jim Donald, who took the posts in 2005 but was asked to step
down after sales slowed in 2007. Schultz aims to restore what he calls the "distinctive
Starbucks experience" in the face of rapid expansion. Analysts believe that Schultz must
determine how to contend with higher materials prices and enhanced competition from lower-
price fast food chains, including McDonald's and Dunkin' Donuts. Starbucks announced it
will discontinue its warm breakfast sandwich products, originally intended to launch
nationwide in 2008, in order to refocus the brand on coffee, but the sandwiches were
reformulated to deal with complaints and the product line stayed.[25] On February 23, 2008,
Starbucks closed its stores from 5:30-9:00 p.m. local time to train its baristas.[26][27]

Recent changes

In March 2008, Schultz made several announcements to Starbucks shareholders. Schultz

introduced Starbucks' "state of the art espresso system",[28] the Thermoplan AG manufactured
Mastrena, which replaced their previous superauto, the Thermoplan Verismo 801 (known
internationally as the Thermoplan Black & White). Starbucks also announced that the
company hopes to enter the energy drink market. Pre-ground beans will no longer be used, so
that the grinding of whole bean coffee will "bring aroma, romance and theater" to American
stores. The company also announced the acquisition of The Coffee Equipment Company,[28]
the manufacturer of the Clover Brewing System. They are currently test marketing this "fresh-
pressed" coffee system at six Starbucks locations; three in Seattle, and three in Boston.[29]
A typical sales area, this one in Peterborough, UK, showing a display of food and the
beverage preparation area

Starbucks stopped using milk originating from rBGH-treated cows in 2007.[30]

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". The website is
powered by the Salesforce software.[31]

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 & flavored syrups, and free refills on brewed drip coffee.[32] Free Wi-Fi Internet
access varies in different regions. US & Canadian card holders can access 2 hours of Internet
access through AT&T in the United States and through Bell Canada within Canada. In
Germany customers can get 1 hour of free Wi-Fi with a voucher card, and in Switzerland and
Austria customers can get 30 minutes the same way (through T-Mobile).

In June 2009, the company announced that it will be overhauling its menu and selling salads
and baked goods without high-fructose corn syrup or artificial ingredients.[33] The move is
expected to attract health- and cost-conscious consumers and will not affect prices.[33] At least
three stores in Seattle were "debranded" to remove the logo and brand name, and remodel the
stores as local coffee houses "inspired by Starbucks."[34][35] The first, 15th Avenue Coffee and
Tea, opened in July on Capitol Hill after Starbucks employees visited local coffee houses to
look around. It serves wine and beer, and plans to host live music and poetry readings.[36][37]
The practice has been criticized as "local-washing", similar to greenwashing.[38]

In September 2009, Starbucks in the UK rolled out free Wi-Fi at most of its outlets, working
with its Wi-Fi partner BT Openzone. Customers with a Starbucks Card will be 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.[39] Beginning in July 2010, Starbucks plans to
offer 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.[40] 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.[41]

A store in Seattle known for its use of the corporation's new ideas will reopen in the fall of
2010 with modifications to the interior decorating and the addition of wine from Pacific
Northwest vineyards. The espresso machines will be in the middle of the store to create what
Starbucks calls a "coffee theater".[42]

VIA "Ready Brew" instant coffee

Starbucks introduced a brand new line of technological advanced 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. Some VIA flavors include Italian
Roast and Colombia, which were 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. Many people couldn't tell the difference between the instant and
fresh brewed coffee. Some analysts theorized that by introducing instant coffee, Starbucks
will devalue its own brand.[43] After the VIA was successfully launched, they introduced the
Decaf Italian Roast as long as a sweetened version called "iced". In October 2010, Starbucks
expanded the VIA selection by introducing four new presweetened flavored versions: Vanilla,
Caramel, Cinnamon Spice and Mocha. With the holiday season in mind in 2010, Starbucks
also introduced the Christmas Blend and Decaf Christmas blend.

Store closures

In 2003 Starbucks closed all six of its locations in Israel, citing "on-going operational
challenges" and a "difficult business environment."[44][45]

On July 1, 2008, the company announced it was closing 600 underperforming company-
owned stores and cutting U.S. expansion plans amid growing economic uncertainty.[46][47] On
July 29, 2008, Starbucks also cut almost 1,000 non-retail jobs as part of its bid to reenergize
the brand and boost its profit. Of the new cuts, 550 of the positions were layoffs and the rest
were unfilled jobs.[48] 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 by
August 3, 2008.[49] Nick Wailes, an expert in strategic management of the University of
Sydney, commented that "Starbucks failed to truly understand Australia’s cafe culture."[50]

On January 28, 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.[51] Altogether, from February 2008 to
January 2009, Starbucks terminated an estimated 18,400 U.S. jobs and began closing 977
stores worldwide.[52]

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. However, Ahold
has not yet abandoned the licensed Starbucks concept; they plan to open 5 new licensed stores
by the end of 2009.[53][54]

Unbranded stores

In 2009, at least three stores in Seattle were 'debranded' to remove the logo and brand name,
and remodel the stores as local coffee houses "inspired by Starbucks."[34][35] CEO Howard
Schultz says the unbranded stores are a "laboratory for Starbucks".[55] The first, 15th Avenue
Coffee and Tea, opened in July 2009 on Capitol Hill. It serves wine and beer, and plans to
host live music and poetry readings.[36] Although the stores have been called "stealth
Starbucks"[34][37] and criticized as "local-washing",[38] Schulz 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."[55]

2009 New York City bombing

At approximately 3:30 a.m. on May 25, 2009, a Starbucks store on the Upper East Side in the
Manhattan borough of New York City, New York, was bombed. A small improvised
explosive device was used and damage was limited to exterior windows and a sidewalk
bench; there were no injuries.[56] Residents of apartments above the bombing site were briefly
evacuated.[57] Police believed at first that the bombing may be related to a serial bomber
operating in Manhattan,[57] because it was similar in nature to earlier bombings in Manhattan
at the British and Mexican consulates, as well as a U.S. military-recruiting center in Times
Square.[58] However, a 17-year-old boy was arrested that July after boasting that he bombed
the store to emulate the movie Fight Club.[59]
Intellectual property

Starbucks at Ibn Battuta Mall, Dubai

The store in Insadong, Seoul, South Korea with Hangeul script sign

Starbucks Coffee (星巴克咖啡) in mainland China

Starbucks U.S. Brands, LLC, is a Starbucks-owned company that currently holds

approximately 120 Starbucks Coffee Company patents and trademarks. It is located at 2525
Starbucks Way in Minden, Nevada.[60]

Name

The company is named in part after Starbuck, Captain Ahab's first mate in the novel Moby-
Dick, as well as a turn-of-the-century mining camp (Starbo or Storbo) on Mount Rainier.
According to Howard Schultz's book Pour Your Heart Into It: How Starbucks Built a
Company One Cup at a Time, the name of the company was derived from Moby-Dick,
although not in as direct a fashion as many assume. Gordon Bowker liked the name "Pequod"
(the ship in the novel), but his then creative partner Terry Heckler responded, "No one's going
to drink a cup of Pee-quod!" Heckler suggested "Starbo". Brainstorming with these two ideas
resulted in the company being named for the Pequod's first mate, Starbuck.[61]
International names

Starbucks is known internationally by the following names:

• Arabic-speaking countries: ‫( ستاربكس‬transliteration: stārbaks)

• Bulgaria: Старбъкс (transliteration: Starbâks)
• China, Hong Kong, Macau, Taiwan: 星巴克 Pinyin: xīngbākè (星 xīng means "star",
while 巴克 is a transliteration of "-bucks")
• Israel: ‫( סטארבקס‬transliteration: sṭārbaqs)
• Japan: スターバックス (transliteration: sutābakkusu), and the abbreviation スタバ is
also used in slang
• Russia: Старбакс (transliteration: Starbaks)
• South Korea: 스타벅스 (transliteration: seutabeokseu), but the Korean translation 별
다방 (star-teahouse) is also used in slang
• Quebec, Canada: Café Starbucks Coffee[62]
• Thailand: สตาร์บัคส์ pronounced [satāːbākʰ]

Logo

In 2006, Valerie O'Neil, a Starbucks spokeswoman, said that the logo is an image of a "twin-
tailed siren". The logo has been significantly streamlined over the years. In the first version,
which was based on a 17th-century "Norse" woodcut, the Starbucks siren was topless and had
a fully visible double fish tail. The image also had a rough visual texture and has been likened
to a melusine. In the second version, which was used from 1987–92, her breasts were covered
by her flowing hair, but her navel was still visible, and the fish tail was cropped slightly. 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' 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, but the temporary switch garnered little attention from the media. Starbucks had
drawn similar criticism when they reintroduced the vintage logo in 2006. The logo was altered
when Starbucks entered the Saudi Arabian market in 2000 to remove the siren, leaving only
her crown, 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.

In January 2011, Starbucks announced that they would make small changes to the company's
logo, removing the Starbucks wordmark around the siren and enlarging the siren image itself.
 •

Original brown logo

The Logo used between 1992 and 2011

The current 2011 redesigned logo

Parodies and infringements

Starbucks has been a target of parodies and imitations of its logo, and has used legal action
against those it perceives to be infringing on 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 is currently allowed to display the image as an expression of free
speech, but he can no longer sell it. In a similar case, a New York store selling stickers and T-
shirts using the Starbucks logo with the words "fuck off" was sued by the company in 1999.
An anti-Starbucks website, starbuckscoffee.co.uk, which encouraged people to deface the
Starbucks logo was transferred to Starbucks in 2005, 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 mermaid replaced by Jesus and the words "Sacrificed for me" around
the edge.

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 logo with a name that sounded phonetically similar to the Chinese for Starbucks.
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. Sam Buck, who owns a coffee store in Oregon, was
prohibited from using her name on the shop front in 2006.

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, commonly
referred to as "bucks." After facing criticism, Starbucks dropped its demand after HaidaBucks
dropped "coffee house" from its name.

Other cases have gone against the company. In 2005 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' claim that the logo of Starpreya is too similar to their own logo. A bar
owner in Galveston, Texas, USA won the right to sell "Star Bock Beer" after a lawsuit by
Starbucks in 2003 after he registered the name, 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.

Ongoing cases include a dispute over the copyright application for Seattle’s Rat City
Rollergirls logo in 2008 The company claimed the roller derby league’s logo by a Washington
artistwas 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. Starbucks launched action against an
Indian cosmetics business run by Shahnaz Husain, after she applied to register the name
Starstruck for use with coffee and related products. She said her aim was to open a chain of
stores selling coffee and chocolate-based cosmetics.

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 and a cafe in Cambodia in 2009, the
owner saying that "whatever we have done we have done within the law".

Corporate social responsibility

In 2009, Starbucks released an annual Corporate social responsibility report.

Environmental impact

Grounds for your Garden

In 1999, Starbucks started "Grounds for your Garden" to make their business more
environmentally-friendly. 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 2004, Starbucks began reducing the size of their paper napkins and store garbage bags, and
lightening their solid waste production by 816.5 metric tons (1.8 million pounds). In 2008,
Starbucks was ranked #15 on the U.S. Environmental Protection Agency's list of Top 25
Green Power Partners for purchases of renewable energy.

In October 2008, The Sun newspaper reported that Starbucks was wasting 23.4 million litres
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.

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 & 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 gallons of water per day in every store
A bin overflowing with Starbucks cups

Recycling

The U.S. Food and Drug Administration granted the first-ever approval to use recycled
content in food packaging for Starbucks coffee cups. In 2005 Starbucks received the National
Recycling Coalition Recycling Works Award.

Starbucks bought 2.5 billion cups for stores in North America in 2007. The 10% recycled
paper cups used by Starbucks are not recyclable, because the plastic coating that prevents the
cup from leaking also prevents it from being recycled. The plastic cups used for cold drinks
are also non-recyclable in most regions. Starbucks cups were originally made using plastic #1
(polyethylene terephthalate, PETE) but were changed to plastic #5 (polypropylene, PP). The
former type of plastic can be recycled in most regions of the U.S. whereas the latter cannot.
Starbucks is considering using biodegradable material instead of plastic to line the cups, and
is testing composting of the existing cups. The exception to this is stores in Winnipeg,
Manitoba, Canada, where paper cups are recycled to a local company called "Wriggler's
Wranch", where they are composted. The majority of Starbucks stores do not have recycling
bins; only 1/3 of company-owned stores recycled any materials in 2007, however
improvements have since been made and recycling bins are popping up in more stores (the
only thing hindering Starbucks' ability to have bins in every store is the lack of facilities for
storage and collection of recycling in certain areas.)[citation needed] Allen Hershkowitz of the
Natural Resources Defense Council says that Starbucks claimed they were using only 10%
recycled material partly because the recycled material costs more.

Starbucks gives customers a 10-cent discount when they bring their own reusable cup, and it
now uses corrugated cup sleeves made from 60 percent post-consumer recycled fiber.
Fair trade

Starbucks coffee beans

In 2000, the company introduced a line of fair trade products. Of the approximately 136,000
metric tons (300 million pounds) of coffee Starbucks purchased in 2006, only about 6% was
certified as fair trade.

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.
They have become the largest buyer of Certified Fair Trade coffee in North America (10% of
the global market). Transfair USA, the only third-party certifier of Fair Trade Certified coffee
in the United States, has noted the impact Starbucks has made in the area of Fair Trade and
coffee farmer's lives:

Since launching {its} FTC coffee line in 2000, Starbucks has undeniably made a significant
contribution to family farmers through their rapidly growing FTC coffee volume. By offering
FTC coffee in thousands of stores, Starbucks has also given the FTC label greater visibility,
helping to raise consumer awareness in the process.

All espresso roast sold in the UK and Ireland is 100% Fairtrade. This means that the coffee in
all cappuccinos and lattes are brewed with 100% Fairtrade Espresso.

Groups such as Global Exchange are calling for Starbucks to further increase its sales of fair
trade coffees.

Beyond Fair Trade Certification, Starbucks argues that it pays above market prices for all of
its coffee. According to the company, in 2004 it paid on average $1.42 per pound ($2.64 kg)
for high-quality coffee beans. This is in comparison to commodity prices which were as low
as $0.50–$0.60 in 2003–04.

After a long-running dispute between Starbucks and Ethiopia, Starbucks agreed to support
and promote Ethiopian coffees. An article in BBC NEWS, states that Ethiopian ownership of
popular coffee designations such as Harrar and Sidamo is acknowledged even if they are not
registered. The main reason Ethiopia fought so hard for this acknowledgement was to allow
its poverty-stricken farmers a chance to make more money. Unfortunately, this has not been
the case. In 2006 Starbucks says it paid $1.42 per pound for its coffee. At, the coffee
Starbucks bought for $1.42 per pound had a selling price of $10.99 per pound. As of August
2010, Starbucks sells only one Ethiopian coffee on its website and it is proclaimed by the
website to be new.

A Starbucks barista

Staff training

Black aprons displaying the title "Coffee Master" are worn by employees who have
completed the Coffee Master course, which educates employees in coffee tasting, growing
regions, roasting, and purchasing (including fair trade).

Ethos water
A display of Ethos water

Ethos, a brand of bottled water acquired by Starbucks in 2005, is sold at locations throughout
North America. Ethos bottles feature prominent labeling stating "helping children get clean
water", referring to the fact that $.05 from each $1.80 bottle sold ($.10 per bottle in Canada) is
used to fund clean water projects in under-developed areas. Although sales of Ethos water
have raised over $6,200,000 for clean water efforts, the brand is not 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. 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. Starbucks has since redesigned the American version of the Ethos water bottles,
stating the amount of money donated per bottle in the description.

[Product Red

Starbucks began selling Product Red goods in November 2008, enabling the supply of AIDS
medicine for 3,800 people for a year.
New Orleans

Main article: Reconstruction of New Orleans

In 2008, Starbucks announced a volunteer program in New Orleans, three years after
Hurricane Katrina. According to Rebuilding Together New Orleans, employees will work on
various projects, including houses, planting trees and an urban garden. A volunteer
coordinator said that "I've never seen this magnitude from one corporation before, I'll say that,
in terms of the sheer numbers."

[Sparkhope

In 2004, UNICEF Philippines and Starbucks launched SparkHope, a programme in which

Starbucks stores in the Philippines provide early childhood care and development for children
in a particular community. An area in each store contains a donation box and shows photos of
the adopted community and information about UNICEF’s programme.

Criticism and controversy

Two Starbucks stores in one shopping center in Queens, New York

Market strategy

Some of the methods Starbucks has used to expand and maintain their dominant market
position, including buying out competitors' leases, intentionally operating at a loss, and
clustering several locations in a small geographical area (i.e., saturating the market), have
been labeled anti-competitive by critics.[110] For example, Starbucks fueled its initial
expansion into the UK market with a buyout of Seattle Coffee Company, but then used its
capital and influence to obtain prime locations, some of which operated at a financial loss.
Critics claimed this was an unfair attempt to drive out small, independent competitors, who
could not afford to pay inflated prices for premium real estate. In the 2000s, Starbucks greatly
increased its "licensed store" system, which permits Starbucks licenses only if they contribute
to less than 20% of the licensee's gross income, are inside other stores or in limited or
restricted access spaces, as to not dilute the brand image. License agreements are rare in
volume and usually only made with Fortune 1000 or similar sized chain stores.[112] The
licensed store system can create the illusion of 2 or more Starbucks cafes in the same
shopping plaza, when one is a standalone company owned, and the others are licensed. The
menus of licensed stores can be the same or trimmed or modified versions of the cafes, or be
positioned as independent cafes that happen to sell Starbucks products (ex. Barnes & Noble).

Labor disputes

The Reverend Billy leading an anti-Starbucks protest in Austin, Texas in 2007

Starbucks workers in seven stores have joined the Industrial Workers of the World (IWW) as
the Starbucks Workers Union since 2004.[113]

According to a Starbucks Union press release, since then the union membership has begun
expanding to Chicago and Maryland in addition to New York City, where the movement
originated.[114][115] On March 7, 2006, the IWW and Starbucks agreed to a National Labor
Relations Board settlement in which three Starbucks workers were granted almost US$2,000
in back wages and two fired employees were offered reinstatement.[116][117][118] According to the
Starbucks Union, on November 24, 2006, IWW members picketed Starbucks locations in
more than 50 cities around the world in countries including Australia, Canada, Germany, and
the UK, as well as U.S. cities including New York, Chicago, Minneapolis and San Francisco,
[119]
to protest the firing of five Starbucks Workers Union organizers by Starbucks and to
demand their reinstatement.

Some Starbucks baristas in Canada,[120] Australia and New Zealand,[121] and the United
States[122] belong to a variety of unions.

In 2005, Starbucks paid out US$165,000 to eight employees at its Kent, Washington, roasting
plant to settle charges that they had been retaliated against for being pro-union. At the time,
the plant workers were represented by the International Union of Operating Engineers.
Starbucks admitted no wrongdoing in the settlement.[113]
A Starbucks strike occurred in Auckland, New Zealand, on November 23, 2005.[121] Organized
by Unite Union, workers sought secure hours, a minimum wage of NZ$12 an hour, and the
abolition of youth rates. The company settled with the Union in 2006, resulting in pay
increases, increased security of hours, and an improvement in youth rates.[123]

Starbucks in the Financial District of Boston, Massachusetts

In March 2008, Starbucks was ordered to pay baristas over US$100 million in back tips in a
Californian class action lawsuit launched by baristas alleging that granting shift-supervisors a
portion of tips violates state labor laws. The company plans to appeal. Similarly, an 18 year-
old barista in Chestnut Hill, MA has filed another suit with regards to the tipping policy.
Massachusetts law also states that managers may not get a cut of tips.[124][125] A similar lawsuit
was also filed in Minnesota on March 27, 2008.[126]

Opening without planning permission

Starbucks has been accused by local authorities of opening several stores in the United
Kingdom in retail premises, without the planning permission for a change of use to a
restaurant. Starbucks has argued that "Under current planning law, there is no official
classification of coffee shops. Starbucks therefore encounters the difficult scenario whereby
local authorities interpret the guidance in different ways. In some instances, coffee shops
operate under A1 permission, some as mixed use A1/A3 and some as A3".[127]

In May 2008, a branch of Starbucks was completed on St. James's Street in Kemptown,
Brighton, England, despite having been refused permission by the local planning authority,
Brighton and Hove City Council, who claimed there were too many coffee shops already
present on the street.[128][129] Starbucks appealed the decision by claiming it was a retail store
selling bags of coffee, mugs and sandwiches, gaining a six month extension,[130] but the
council ordered Starbucks to remove all tables and chairs from the premises, to comply with
planning regulations for a retail shop.[131] 2500 residents signed a petition against the store,[132]
but after a public inquiry in June 2009 a government inspector gave permission for the store
to remain.[133]

A Starbucks in Hertford won its appeal in April 2009 after being open for over a year without
planning permission.[134] Two stores in Edinburgh,[135] one in Manchester,[136] one in Cardiff,
[137]
one in Pinner and Harrow, were also opened without planning permission.[127] The Pinner
cafe, opened in 2007, won an appeal to stay open in 2010.[138] One in Blackheath,
Lewisham[139] was also under investigation in 2002 for breach of its licence, operating as a
restaurant when it only had a licence for four seats and was limited to take away options.
There was a considerable backlash from members of the local community who opposed any
large chains opening in what is a conservation area. To this date, 8 years after the court case,
the Starbucks is still operating as a takeaway outlet.

[edit] Violence against Starbucks in Canada and the United Kingdom

A store on Piccadilly with its windows boarded up after being smashed by protesters

A damaged front window of a Starbucks coffee shop in Toronto

On January 12, 2009, a Starbucks in Whitechapel Road in London was the target of vandalism
by pro-Palestinian demonstrators who broke windows and reportedly ripped out fittings and
equipment after clashes with riot police. In the early hours of the following morning a
suspected makeshift firebomb was hurled into the premises, causing further damage.[140][141][142]

On January 17, 2009, a pro-Gaza protest was held by the Stop the War Coalition in Trafalgar
Square in central London. After the rally, two groups of people, some hiding their faces,
smashed and looted two Starbucks on Piccadilly and Shaftesbury Avenue. Although the stores
had requested greater police protection following the violence against a Starbucks the
previous week, Scotland Yard stated it could "not stop thugs hell-bent on causing
damage."[141][143][144][145]
On 26 June 2010, during the 2010 G-20 Toronto summit protests, a Starbucks window was
smashed, as well as other stores, by the "Black bloc". A supposed member, when asked why
by a CBC radio reporter, cited Starbucks' support for Israel as being the reason.

[edit] "The Way I See It"

Quotes by artists, writers, scientists and others have appeared on Starbucks cups since 2005 in
a campaign called "The Way I See It".[146] Some of the quotes have caused controversy,
including one by writer Armistead Maupin and another by Jonathan Wells that linked
'Darwinism' to eugenics, abortion and racism.[147]

[edit] US military viral email

A US Marines Sergeant emailed ten of his friends in August 2004 having wrongly been told
that Starbucks had stopped supplying the military with coffee donations because the company
did not support the Iraq war. The email became viral, being sent to tens of millions of people.
Starbucks and the originator sent out a correction,[148] but Starbucks' VP of global
communications, Valerie O'Neil, says the email is still forwarded to her every few weeks.[149]
[150][151]

[edit] Coffee quality

The March 2007 issue of Consumer Reports called McDonald’s Premium Roast coffee to be
“cheapest and best”, beating Starbucks, Burger King and Dunkin’ Donuts coffee.[152] The
magazine called Starbucks coffee "strong, but burnt and bitter enough to make your eyes
water instead of open".[152]

[edit] Wasting water

A British newspaper reported that Starbucks was wasting millions of liters of water daily,
through a policy that mandated a constantly running tap in each store worldwide. Starbucks
claimed the "dipper well" with the running tap was for sanitary reasons.[153]

[edit] Music, film, and television

Main article: Hear Music
Starbucks' second Hear Music Coffeehouse at the South Bank development adjacent to the
River Walk in downtown San Antonio, Texas.

Hear Music is the brand name of Starbucks' retail music concept. Hear Music began as a
catalog company in 1990, adding a few retail locations in the San Francisco Bay Area. Hear
Music was purchased by Starbucks in 1999. Nearly three years later, 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 New Hear Music Label sold in Starbucks outlets. Its inaugural release was a big
non-coffee event for Starbucks the first quarter of 2007.

In 2006, the company created Starbucks Entertainment, one of the producers of the 2006 film
Akeelah and the Bee. Retail stores heavily advertised the film before its release and sold the
DVD.[154]

Partnership with Apple

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 login to the Wi-Fi network), targeted at iPhone, iPod
touch, 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.[155] 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. A Starbucks app is available in the iPhone App Store.

Partnership with MSNBC

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.[156] 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.[157]

Cup sizes
Name Measurement Notes
Short 8 US fluid ounces (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/Spanish for large
Venti 20 US fl oz (590 mL), 24 US fl oz (710 mL) Italian for twenty
Trenta 31 US fl oz (920 mL) Italian for thirty

See also
Seattle portal

Companies portal

Food portal

• Coffee culture
• 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.

External links

Wikimedia Commons has media related to: Starbucks

• Official website
• Starbucks Union

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