BUBLE

Starbucks

By Quartr: Peter Westberg for now

Our story begins in 1971, amidst the charming cobblestone streets of Seattle's historic Pike Place Market. It was here that Starbucks opened its doors for the first time, enticing customers with the aroma of freshly roasted coffee beans, exotic teas, and spices from around the globe. This small store quickly became a haven for coffee enthusiasts eager to take home the best beans. That's right, Starbucks actually began its journey as a retailer of coffee beans and equipment, founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker. Driven by a simple yet profound vision, they aimed to offer the world's finest coffee. However, it was about a decade later that the first seed of what we today recognize as Starbucks was arguably planted.

In 1981, a young New Yorker named Howard Schultz wandered into the original Starbucks store in Seattle. Completely captivated by the rich, aromatic coffee, he joined the company the following year. Schultz's journey then took a pivotal turn during a trip to Milan, Italy, in 1983, where he fell in love with the country's vibrant espresso culture. Inspired by the sense of community in Italian cafés, he envisioned bringing a similar experience to the U.S., with Starbucks becoming a "third place" between work and home – a place where people could gather, relax, and enjoy a premium coffee experience.

The Starbucks founders were initially resistant to this idea, preferring to keep focusing solely on selling high-quality coffee beans and equipment. This led Schultz to leave Starbucks in 1985 to start his own coffeehouse chain, Il Giornale, which became an immediate success. In 1987, Schultz had achieved such success with Il Giornale that he seized the opportunity to purchase Starbucks for $3.8 million, merging it with his own company and beginning the rapid expansion of the Starbucks brand. Interestingly, Bill Gates Sr. played a crucial role in the funding process. Without his belief in Schultz, there might not be a Starbucks today. After the acquisition, Starbucks embarked on aggressive growth, expanding from eleven stores in 1987 to over 38,000 globally today.

With Schultz's vision guiding the way, Starbucks began its rapid expansion beyond Seattle, reaching Chicago and Vancouver, and soon after, California, Washington, and New York. By 1996, Starbucks had crossed the Pacific, opening its first store in Japan, followed by Europe in 1998 and China in 1999. Over the next two decades, Starbucks' green siren logo increasingly became a familiar sight, welcoming millions of customers each week across the globe.

One of the major keys to Starbucks' success has been its relentless pursuit of innovation, which often ties back to the culture the company has built around its employees. The company has consistently pushed the boundaries of what a coffee shop can be. From the introduction of the Frappuccino in 1995 – a blend of coffee, milk, and ice that has become a summer staple – to the development of the Starbucks Rewards program, which has revolutionized customer loyalty, Starbucks has continually evolved to meet the changing tastes and preferences of its customers.

Starbucks' Bean Stock program, launched in 1991, lies at the heart of the company culture and was one of the first of its kind at such scale. By granting stock options to employees, known as partners, Starbucks allowed them to become shareholders without purchasing shares. This initiative aimed to align employees' interests with the company's success, fostering a sense of ownership and loyalty. From day one, Schultz believed that satisfied employees are the most crucial building block, as they will improve the customer experience, which in turn will reward shareholders. In hindsight, we can state that he was absolutely right.