Starbucks Success Secrets
Establishments Starbucks is a world-famous brand. These coffee houses are most popular, of course, in America. But in other countries they are no less in demand. Americans even have a common expression that they spend almost as much time at Starbucks as they do at work and at home.
What allowed a popular coffee house to win such love of customers? Only the presence of quality coffee, which in these establishments is undoubtedly beyond praise? The high-quality food products presented at Starbucks are by no means the only reason for the popularity and relevance of this brand. We’ll talk about how Starbucks started and developed.
The story of the legendary Starbucks began back in 1972. Friends Zev Zigl, Jerry Baldwin and Gordon Bowker decided to open a small business for three – a shop selling coffee beans, as well as various devices for roasting and brewing coffee. Entrepreneurs owe the name of their business to the world famous Moby Dick literary work by Herman Melville.
Why coffee? Yes, it’s just that all three passion loved this freshly brewed, aromatic drink. For about 10 years in a row, things were going very well at the coffee shop. And in the 1980s, business began to undergo some changes.
Coming into the Howard Schultz business
The first business left Zev Zigl, and it happened in 1980. At that time, the business was not just one small store, but a whole network of six outlets throughout Washington.
Howard Schulz, who is today a key player in Starbucks, was a representative of Hammarplast in 1981. One of the activities of Hammarplast was the production of plastic thermoses. And it was these thermoses that Starbucks owners often bought for use in their business. Howard Schulz became interested in their activities and began to provide all kinds of support to the business.
A year later, Schultz led the marketing department of Starbucks. After working quite a bit, he went to Milan, where there was a large exhibition of dishes for catering establishments, with the aim of introducing Starbucks. There he learned about the traditions of making espresso coffee, which sowed even more love for coffee in his soul. Continuing to study the Italian coffee culture, Schulz also visited Verona, from where he brought a recipe for the now mega-popular coffee – latte.
Around the same time, an idea arose in Schultz’s head, which at that time had become something like an epiphany. He wanted to create establishments in which only fans of good coffee would gather and enjoy this drink in a cozy atmosphere. He developed the whole concept of such institutions a couple of years, improving and honing even the smallest details.
The implementation of a new concept
Jerry Boldun, who at that time still headed the Starbucks chain of stores, for some reason did not want to completely plunge into the restaurant business, however, Howard’s idea pleased him. So the first espresso bar was created on the territory of one of the existing Starbucks stores. Businessmen were interested in what came of it.
The Starbucks chain continued to grow, and when the first Seattle coffee shop was opened, it gained wildly and instantly popularity among coffee lovers. Within a couple of months, the daily number of visitors was off the charts, and sales were several times higher than in all other Starbucks stores combined.
1987 was the year that ownership of the coffee chain reached the Seattle group of investors. The deal was worth $ 3.7 million. Howard Schulz, using his talent for persuasion, was able to persuade investors to pay precisely this amount, promising that in the next five years, the network could expand to 125 outlets. Shops, which until then were only selling coffee beans, were transformed into cafes. The Starbucks logo has also been refined and converted into a more “decent” version (previously the mermaid with naked breasts was on the logo).
Further, the development of Starbucks began more than rapidly. Separate cafes appeared in cities such as Chicago, Portland, Vancouver and others. In the early 1990s, the company experienced the following changes: Starbucks airport stores were opened; California was conquered; as well as the company turned into a public one and began to openly place its shares.
In 1997, the number of Starbucks coffee houses was already ten times higher than in the early 1990s. Not only the inhabitants of America, but also the inhabitants of Japan and Singapore could indulge themselves with a trip to this legendary place. By the way, the first Starbucks establishment outside of America was opened in Tokyo (Japan) in 1996.