Starbucks

Starbucks Corporation, an American multinational chain of coffeehouses and roastery reserves, is based in Seattle, Washington. It is the largest coffeehouse chain globally, and its expansion is widely seen as the driving force behind the second wave of coffee culture, which broadened the range of coffee experiences available to consumers.

The company began in 1971 when Jerry Baldwin, Zev Siegl, and Gordon Bowker—who met as students at the University of San Francisco—opened a coffee bean wholesaler at Seattle’s Pike Place Market. Inspired by coffee roaster Alfred Peet, they initially sold only beans and equipment. The name “Starbucks” came from a brainstorming session; a partner suggested that words starting with “st” were powerful. After listing such words, they landed on “Starbo,” a misreading of the mining town Storbo, and then recalled “Starbuck,” the chief mate in *Moby-Dick*. Bowker noted the connection to the novel was coincidental. The first store was at 2000 Western Avenue from 1971 to 1976, then moved to 1912 Pike Place. For its first two years, Starbucks bought green beans from Peet’s; after 1973, Peet stopped supplying and helped train their new roastmaster.

In 1984, the original owners bought Peet’s Coffee. By 1986, Starbucks had six Seattle stores and began selling espresso. In 1987, the founders sold the chain to former marketing director Howard Schultz, who rebranded his Il Giornale outlets as Starbucks and started expanding. That year, the first stores outside Seattle opened in Vancouver, British Columbia, and Chicago. By 1989, there were 46 stores across the Pacific Northwest and Midwest, roasting over 2 million pounds of coffee annually.

In June 1992, Starbucks went public with 140 outlets and revenue of $73.5 million, up from $1.3 million in 1987. Its market value was $271 million; the 12% stake sold raised about $25 million, funding a doubling of stores within two years. In 1994, Starbucks bought The Coffee Connection, gaining rights to the Frappuccino beverage, which launched under the Starbucks name in 1995. In 1999, Starbucks experimented with eateries called Circadia in the San Francisco Bay Area, later converting its Seattle Circadia to a Café Starbucks. That year, it also acquired Pasqua Coffee, a chain with nearly 60 locations in San Francisco, Los Angeles, and New York.

In April 2003, Starbucks bought Seattle’s Best Coffee and Torrefazione Italia from AFC Enterprises for $72 million, gaining 150 stores and a significant wholesale business. By June 2003, Starbucks Japan had 466 stores, with plans to add 70 to 75 more and install ovens in all locations to improve food. From 2005 to 2007, Howard Behar was president of Starbucks North America. In September 2006, rival Diedrich Coffee sold most of its company-owned stores to Starbucks, including many Coffee People locations, escalating regional coffee wars. Starbucks converted these stores, except for Coffee People outlets at Portland International Airport. In early 2008, Starbucks launched My Starbucks Idea, a community website for customer suggestions and feedback, where users could comment and vote.

As of November 2022, Starbucks operated 35,711 stores across 80 countries, with 15,873 in the United States. Of the U.S. stores, over 8,900 are company-operated; the rest are licensed. In 2022, the company ranked 120th on the Fortune 500 and 303rd on the Forbes Global 2000. Its menu includes hot and cold drinks, whole-bean coffee, micro-ground instant coffee, espresso, caffe latte, full and loose-leaf teas, juices, Frappuccino beverages, pastries, and snacks. Some offerings are seasonal or local. Most locations offer free Wi-Fi. The company has faced multiple controversies over its business practices, yet it maintains strong brand loyalty, market share, and company value.