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Starbucks logo – history, meaning, and evolution.

Starbucks is one of the most recognizable brands in today’s world . With 52 years of history, the company has established itself to dominate the coffee industry with more than 35,000 stores worldwide.

Starbucks has shown that a well-established brand comes hand in hand with a great logo . This case study will examine the history of the Starbucks logo, its development, and its meaning to understand the company’s success better.

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Table of Contents

Starbucks Brand Heritage and History

Founded in 1971 in Seattle by Jerry Baldwin, Zev Siegl, and Gordon Bowker, Starbucks started as a place where people could buy coffee beans, coffee-making equipment, and spices. These three friends wanted a friendly space for coffee lovers to meet and enjoy a nice cup of coffee.

In 1983, Howard Schultz, an employee of the Starbucks shop, discovered the espresso coffee while on a trip to Milan; this moment would revolutionize coffee in the United States.

When he returned to Seattle, he envisioned revolutionizing the American coffee industry by introducing espresso on Starbucks’ menu. He wanted to differentiate Starbucks’ coffee from the regular “cup of coffee” everyone asked for elsewhere. Schultz also wanted to create a ‘third space’ in peoples’ lives , somewhere aside from their homes and workplace to gather and frequent where they will form connections. He wanted Starbucks to be more than just a cafeteria; he wanted the chain to be part of people’s every day.

The 1990s were Starbucks’ era of expansion . Throughout the decade, the company went public. It opened its first stores in Japan, Europe, and China, which could only foreshadow the importance that Starbucks would achieve in the following ten years.

Today, the company is present worldwide, dominating the takeaway coffee industry and even generating its own jargon for products. For example, naming their products ‘Frappuccino’ or ‘Cloud Macchiato’ and sizes like ‘Venti’ or ‘Grande’. 

The Starbucks Logo Evolution

The Starbucks logo has a rich history and has undergone several changes since its inception.

1971 – 1987

In 1971, Terry Heckler, a graphic designer hired by the founders, designed the company’s first logo.

Heckler got inspired by a 16th-century Norse woodcut of a mythical sea creature – a siren . The drawing represented a topless siren holding two tails in her hands.

The symbolic green that is renowned today was nowhere to be seen on this first logo, as brown was the protagonist . In addition, the original logo included the words “coffee, tea, and spices”.

1987 – 1992

Starbucks underwent a significant rebranding effort during this period and updated its logo. The new logo still featured the siren, but she was now dressed and more conservatively depicted, with her nudity covered by her hair . In addition, the words “tea and spices” were removed due to the company’s focus on coffee sales.

However, the most significant change was the shift in the colors. 1987 saw the appearance of the infamous “Starbucks green” , a result of the merging of Starbucks and coffee company Il Giornale’s logos. This union also gave the two stars on each side of the logo.

Background: Why did Starbucks merge with Il Giornale? In 1985, Howard Schultz left Starbucks to start Il Giornale, influenced by the coffee culture in Milan. Starbucks was Il Giornale’s first investor, and the coffee shop chain used Starbucks beans for their drinks. In 1987, Starbucks’ founders were interested in selling the company. Howard Schultz raised $3.8 million to acquire the assets and renamed Il Giornale to Starbucks.

1992 – 2011

As mentioned earlier, the 1990s were the decade of Starbucks’ expansion; therefore, the company decided not to change much of the previous logo to keep its familiarity.

After a light redesign in 1992 , Starbucks’ logo remained almost the same. The only significant difference was the new close-up of the siren ; her whole body was no longer visible, with her torso covered by her hair.

2011 – Present

In 2011, Starbucks underwent its most significant logo change to date.

The company removed all lettering from the logo and opted for a simple, stylized representation of its siren . The new logo was designed to be more versatile and to work better in digital and mobile contexts. Moreover, the green color was brightened and made more vibrant .

In this version of the logo, the designers worked on a hidden detail that only a few people seemed to notice. If you want to know what it is, keep reading!

Logo Design Elements

Knowing the historical context of Starbucks’ logo development, it is essential to also understand the relevance of its different elements.

Although today’s logo features no text, the bold letters that have appeared for over 20 years are still easily recognizable.

“Sodo-Sans Black” was the custom-designed font for the company. The font was created to be easy to read and impactful, transmitting the brand’s desire to make a stance. Even though it disappeared from the logo, the font is nowadays still used on their packaging products, such as their plastic cups.

Starbucks also uses two other fonts for their more visual content: a serif type called “Lander” and another sans-serif called “Pike” .

Two primary colors have been part of Starbucks’ history: brown and green .

In the beginning, brown was the choice for the company’s logo. Brown is often associated with nature and stability and is believed to stimulate appetite. In a more literal sense, brown is the color often associated with coffee.

Although the green came from the union between Starbucks and Il Giornale, its association also resonates with the brand’s ideals. Green often represents protection, nature, healing, wealth, and money . This is a great way to transmit the value of your product: a natural, well-resourced coffee worth its price.

One of the few things that have always stayed the same in Starbucks’ logo is its shape – the circle .

It is one of the most used shapes in Graphic Design due to its high adaptability when implemented in other products, which, in Starbucks’ case, it has shown great success.

The face of Starbucks, the siren, is the critical element of Starbucks’ logo .

Seattle is a port city; therefore, Starbucks’ founders had a solid connection to the water and marine life . Historically, the primary transportation method used for coffee beans has been through water inside container ships.

Terry Heckler, the original graphic designer, was inspired by Seattle’s location and the mythical creature of the siren, who would always lure seamen into her arms. Consequently, Starbucks’ siren was created to symbolize how this figure would attract coffee lovers to the shop to taste its coffee .

Did you notice this hidden logo detail? Although the siren has always been present, a detail is hidden in the siren that only a few people have noticed. During the 2011 rebrand and remake of the logo, they focused on working on the face of the siren. However, in one of the near-final designs, her face was too perfect, too symmetrical. It was then that Starbucks’ designers wanted to give back some humanity. After all, she was the face of Starbucks; she was almost a human figure. They, therefore, elongated the nose a bit further down on the right side, creating a slight asymmetry .

What Makes Starbucks’ Logo Successful?

The answer is simple. Starbucks took one element and made it the connecting thread through all its re-branding efforts: the siren.

The siren has been included in the logo since the beginning and is the main element today.

She is an excellent example of how you don’t necessarily need to include a literal element in your logo . Starbucks’ siren is connected (although loosely) to coffee. Still, its independence from the main product makes her stand out from other brands.

Other iconic logo elements are the shape, which gives the logo versatility and simplicity, and its bold green color.

These factors have helped the logo become one of the most recognizable and iconic in the world, and it continues to play an essential role in the success and growth of the Starbucks brand.

Key Takeaways

In conclusion, the Starbucks logo is a testament to the power of branding and the importance of consistency yet evolution in the branding process .

The logo has undergone several changes over the years. Still, it has always remained true to the company’s original mission and values . As a result, it has helped to make Starbucks one of the world’s most recognizable and respected brands.

Whether you’re a customer in Seattle or Shanghai, the Starbucks logo symbolizes quality, reliability, and consistency. The company continues to captivate and seduce customers with its coffee.

• Lock, S. (2022, August 15) . Starbucks: international and U.S. stores 2018 | Statistic. Statista; Statista. https://www.statista.com/statistics/218366/number-of-international-and-us-starbucks-stores/
• Schultz, H. (2012). Pour Your Heart Into It. Hachette Books.
• Starbucks. (2022). About Us. Starbucks Coffee Company. https://www.starbucks.com/about-us/
• Starbucks. (2019). Logos | Starbucks Creative Expression. Starbucks.com. https://creative.starbucks.com/logos/
• Typography | Starbucks Creative Expression. (2019). Starbucks.com. https://creative.starbucks.com/typography/

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The Starbucks logo: a history

We look back at the history of the Starbucks logo, and how it evolved to one of the most recognised marks on the planet.

The Starbucks logo has become synonymous with hot, fresh coffee to go. The chain is the dominant coffee shop across the globe, driving a huge, multi-decade shift in our relationship with the beverage and the culture surrounding coffee more generally. Starbucks may not be your favourite cup of coffee – it certainly isn’t mine. But it’s affordable, ubiquitous and always there, and if you live and work in a city, you’ve probably picked up a cup with that siren logo on the side not too long ago.

Starbucks was founded by three coffee lovers in Seattle in 1971 – Gordon Bowker, Jerry Baldwin and Zev Siegel. At first, the company didn’t even sell coffee by the cup, but was in the business of selling coffee beans and related paraphernalia for home coffee brewing. Its journey from a humble spot in Pike Place Market to reaching practically every corner of the globe has been one of the business’ great success stories – and with it every step of the way has been that iconic siren.

The Starbucks logo has certainly earned its reputation as one of the best logos of all time , so it’s worth looking at how it came to be what it is today. Join us on a journey that spans more than half a century – and don’t forget to check out our guide to the best logo designers if it gets you inspired to do some design work of your own. 

1971: Siren songs low key kinda slap

Pop quiz – what do Dana Scully from The X-Files, Battlestar Galactica’s top-gun Viper pilot, and the world’s most famous coffee chain all have in common? Answer: they all take their names (or nicknames) from Moby-Dick, Herman Melville’s seminal tale of revenge, obsession and whale biology.

Specifically, they’re named after Starbuck, Captain Ahab’s long-suffering first-mate, who spends most of the novel worrying that Ahab’s beef with the titular big lad is going to get everyone on the ship killed, then spends the final few chapters being proven mostly correct. His moniker has since been adopted as Dana Scully’s childhood nickname from her father, BSG pilot Kara Thrace’s call-sign, and of course, the name of a coffee chain on practically every high street.

For the coffee shop, this name was a second draft. Co-founder Gordon Bowker was the writer of the trio, and he had wanted to give the company a Moby-Dick inspired name. however, he had pitched ‘Pequod’, which was the name of Ahab’s ship in the novel. Thankfully, the trio had by this point brought on branding guru Terry Heckler, who correctly pointed out that this was a rather unappealing name. (As a rule, if you’re selling anything drink-related, you should probably try not to have ‘pee’ in your company name. That’s some free branding advice from your friends at Creative Bloq).

Looking for other ideas, Heckler researched landmarks near Seattle, and came across an old mountain camp near Mt. Rainier called ‘Starbo’. The phonetic similarity with the Pequod’s unlucky first mate led the group back to Moby-Dick, and ultimately, the coffee shop that opened its doors in downtown Seattle’s Pike Place Market in 1971 was named ‘Starbucks’.

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Heckler was also tasked with coming up with a logo. Sticking with the nautical theme, he started looking through old seafaring books for inspiration, and hit upon an image of a siren. Sirens are monsters from Greek mythology, most famously appearing in The Odyssey. They’re twin-tailed mermaids whose beguiling songs would lure sailors to their doom. Heckler felt this was, "the perfect metaphor for the siren song of coffee that lures us cupside".

The illustration itself is striking, and once you look closer it’s more than a little unsettling – quite a bit more gothic than the sweeter siren Starbucks uses nowadays. Heckler chose to render the logo in coffee-bean brown. He used the circular design to wrap words around the emblem, listing the company’s main products in addition to its name, and using simple white wordmarks with a firm emphasis on legibility. 

Like all the best logos, this is a classic case of getting a lot right the first time – even without the words, if someone asked you which company’s first logo this was, you’d probably guess correctly. Though the siren has undergone some redesigns – as we’ll see – she remains an indelible part of the Starbucks brand today.

1987: Seeing green

In the early 1980s, the fast-growing Starbucks company was employing a young go-getter named Howard Schultz as its director of operations and marketing. Inspired by the coffee-bar culture he’d encountered while travelling in Italy, and particularly Milan, Schultz wanted Starbucks to start selling an interesting short coffee drink he’d encountered called ‘espresso’. 

The founders, however, didn’t want to distract from their core business of selling coffee beans. So, in 1985, Schultz left the company to start his own chain of coffee shops, which he named Il Giornale. The split was amicable – Starbucks both invested in Il Giornale and supplied it with beans – and the cafes proved to be successful, spawning more locations around Seattle. Starbucks was even inspired to start selling espresso itself.

By 1987, the Starbucks founders had decided it was time to move on. They sold their company to Schultz, their former employee, who took possession of Starbucks’ roasting plant and six Seattle stores, as well as its name. He decided to bring his Il Giornale cafes under the Starbucks brand, but he wanted to keep a little something of his successful venture as the chain moved forward.

Once again, the top team at Starbucks turned to Terry Heckler, this time briefing him to elegantly combine the logos of Starbucks and Il Giornale. Heckler kept the basic format of the original Starbucks logo, but borrowed Il Giornale’s distinctive green for the colouring. He also took the opportunity to redesign the siren, who has a much softer and simpler look than she did before. She’s had a bit of a modesty makeover too, her formerly bare breasts now covered by her hair. 

1992: Zooming in

A rather small update to the Starbucks logo came along in 1992. At first glance it looks practically identical, however we are now viewing the siren from much longer, and can no longer see her entire body. The navel is gone, with a much tighter crop on just her face and the tips of her twin tails either side.

Otherwise, elements from the 1987 redesign have mostly been kept. We’ve still got stars instead of dots separating the words ‘Starbucks’ and ‘coffee’, the only two words on the logo (the days of ‘tea’ and ‘spices’ having long since passed).

2011: Wordless wonder

By 2011, Starbucks had been running for forty years, and was an unqualified success story. Its ubiquity was so entrenched that it had been used as a gag on The Simpsons more than a decade prior, and the chain had come out of the economic downturn of 2008 bruised and battered, but still standing.

At the forty-year mark, it was time for a refresh. Starbucks global creative director Connie Birdsall worked with branding company Lippincott to create a new look for the coffee chain, and the solution they came up with was simple, but radical in its own way. They removed all words from the logo, freeing the siren to stand alone. Not many brands have a logo iconic and distinctive and well-established enough to pull this off. Starbucks, recognising its siren had the potential to be in the company of marks like the Nike tick and the McDonald’s arches , went for it.

It took some time to get it right. Initially, Birdsall and the team at Lippincott had overhauled Heckler’s siren design, trying to simplify it. But as much as they tried, something just wasn’t working – the siren had taken on an unsettling, off-putting quality that they just couldn’t quite shake. It was that classic uncanny valley effect, where something is made more unsettling by how close it looks to being human. 

‘As a team we were like, “There’s something not working here, what is it?”’ Birdsall recalled in an interview with Fast Company . ‘It was like, “Oh, we need to step back and put some of that humanity back in.”’

Returning to Heckler’s work, they discovered the answer: asymmetry. If you look carefully at the siren design from 1987, she seems symmetrical, but she’s not . On the right-hand side of her nose, there’s a longer and a deeper shadow than there is on the left. It isn’t much, but it’s noticeable, and it proved to be key to shaking off that uncanny valley effect and making the siren feel a bit more welcoming – a bit more human. ‘The imperfection was important to making her really successful as a mark,’ Birdsall said.

The imperfection in the mark, and the removal of the words, also made the Starbucks brand much harder to imitate. Knock-offs had become a global problem for Starbucks, with cheeky coffee shops around the world borrowing the green-and-black colours and giving themselves clever names like ‘Buckstar’. By making the distinctive, imperfect siren the star of the show, and taking away that legible but replicable font, Starbucks made itself a singular sensation once again.

To explore the stories behind other famous logos, see our logo histories posts.

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Jon is a freelance writer and journalist who covers photography, art, technology, and the intersection of all three. When he's not scouting out news on the latest gadgets, he likes to play around with film cameras that were manufactured before he was born. To that end, he never goes anywhere without his Olympus XA2, loaded with a fresh roll of Kodak (Gold 200 is the best, since you asked). Jon is a regular contributor to Creative Bloq, and has also written for in Digital Camera World, Black + White Photography Magazine, Photomonitor, Outdoor Photography, Shortlist and probably a few others he's forgetting. 

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The Evolution of the Starbucks Logo: A History from 1971 to Today

by Logomaster Team on Apr 26, 2023

Few symbols are as globally recognized as the Starbucks logo, an emblem of a brand synonymous with exceptional coffee and an unparalleled cafe experience. Delving into the history and evolution of the Starbucks logo offers valuable insights into the brand's identity, as well as its influence on design, branding, and popular culture. In this article, we invite you to embark on a captivating journey, exploring the Starbucks logo's transformation from its inception in 1971 to the iconic image we all know and love today.

Birth of an Icon: The Original Starbucks Logo (1971)

When Starbucks was first established in 1971, its founders chose a logo that reflected the company's maritime roots in Seattle. The original logo design featured a two-tailed mermaid, or siren, surrounded by a circular frame with the words "Starbucks Coffee, Tea, and Spices" written around it.

The inspiration behind the two-tailed mermaid comes from Greek mythology, where sirens were known to lure sailors with their enchanting songs. The founders believed that the siren symbolized the seductive allure of their coffee, captivating consumers with its irresistible aroma and taste.

In its initial iteration, the Starbucks logo was more detailed and visually complex than the current version. The siren was depicted with a fully exposed, double-fishtailed lower body and long, flowing hair, giving the design an intricate and artistic appearance. The color scheme of the original logo was brown, reflecting the brand's focus on coffee and natural ingredients.

A Bold Transformation: First Major Evolution (1987)

In 1987, Starbucks underwent a significant logo redesign to reflect the company's expansion beyond its original offerings. The new logo maintained the siren as the central figure but simplified the design for a cleaner and more modern appearance.

The updated logo replaced the brown color scheme with a more eye-catching green, symbolizing growth and freshness. The surrounding text was altered to read "Starbucks Coffee," emphasizing the company's primary focus on coffee. The siren's appearance was also modestly refined, with her fishtails partially covered by a flowing ribbon.

This bold transformation played a vital role in shaping Starbucks' brand identity, establishing the company as a contemporary and innovative player in the coffee industry.

A New Era of Simplicity: Second Major Evolution (1992)

As Starbucks continued to expand its global presence, another logo evolution took place in 1992. This iteration further simplified the design, emphasizing the iconic siren while reducing visual clutter.

The revised logo removed the surrounding text entirely, allowing the siren to take center stage. Additionally, the color scheme was adjusted to feature a deeper shade of green, evoking a sense of stability and sophistication.

This streamlined design effectively communicated Starbucks' commitment to delivering a consistent and high-quality coffee experience, further solidifying the company's reputation as a leading coffee brand.

Embracing Minimalism: The Current Starbucks Logo (2011)

In celebration of Starbucks' 40th anniversary in 2011, the company unveiled its most minimalistic logo to date. This centennial logo design removed the siren's surrounding circle and text, focusing solely on the siren figure.

The new design emphasized the siren as a symbol of Starbucks' global presence and its commitment to offering an exceptional coffee experience in every corner of the world. The minimalist approach showcased Starbucks' confidence in the power of its brand, highlighting the siren as a universally recognizable symbol of quality.

Impact Beyond Coffee: Cultural Influence and Meaning of the Starbucks Logo

The Starbucks logo has transcended its role as a mere representation of a coffee brand. Its influence on design trends and corporate branding has been profound, inspiring countless businesses to adopt similar circular and minimalistic designs.

The Starbucks logo has also become a cultural icon, appearing in movies, TV shows, and countless social media posts. The siren has evolved into a symbol of not just coffee, but also a lifestyle that emphasizes connection, relaxation, and a sense of belonging.

The meaning behind the Starbucks logo is multifaceted. At its core, it represents the brand's commitment to delivering an exceptional coffee experience. However, it also embodies the spirit of adventure, the allure of the unknown, and the power of human connection, all of which are integral to the Starbucks brand.

Conclusion: The Everlasting Emblem of Starbucks - Past, Present, and Future

The Starbucks logo has undergone several transformations since its inception in 1971. Each evolution has served to refine and strengthen the brand's identity while adapting to changing market conditions and design trends.

Today, the Starbucks logo stands as a testament to the brand's enduring success and influence. Its simplicity, elegance, and cultural impact have made it one of the most recognizable and powerful symbols in the world. As Starbucks continues to grow and innovate, the iconic siren will undoubtedly remain at the heart of the brand, embodying its essence and guiding it towards a promising future.

If you're interested in exploring more food-related logos and their evolution, be sure to check out our " food logo design " page. There, you'll find a showcase of famous food logos, from McDonald's to Coca-Cola, and gain a deeper understanding of the power of visual branding. Thank you for joining us on this journey through the history and evolution of the Starbucks logo!

Inspired by the Starbucks logo evolution and its impact on branding? If you're looking to create a unique and powerful logo for your own business, try our logo maker today. Our intuitive platform offers a wide range of design options and customizations to help you craft the perfect logo that represents your brand identity and leaves a lasting impression.

Disclaimer: Logomaster.ai is not affiliated with any of the companies whose logos are featured in this blog post. The logos are used for educational and inspirational purposes only. All trademarks and registered trademarks are the property of their respective owners.

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Starbucks Logo: History, Meaning, Evolution, Hidden Details, and Visual Identity

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Starbucks is the most famous coffee house in the world, and like the Apple logo for Apple, Starbucks’ branding has contributed to the company’s success.

The distinct Starbucks logo in green and white has become so recognizable that Starbucks didn’t even put the company’s name on it.

The company operates in almost 80 countries with over 30,000 stores worldwide. By 2018, Starbucks was selling over 4 million cups of coffee daily – and shows no signs of slowing down.

How did Starbucks become so successful? And how has its visual identity contributed to the company’s success? And what makes the unique twin-tailed siren in its logo so iconic?

This article will tackle the Starbucks logo’s history, meaning, evolution, and hidden details to explore why the unique twin-tailed siren has become one of the most famous logos today.

The History and Evolution of the Starbucks logo

• Starbucks Origin

History and meaning of the Starbucks logo

Evolution of the starbucks logo, hidden details behind the starbucks logo, why does the starbucks logo work.

• Starbucks logo facts you probably did not know

Starbucks origin

Three college students founded Starbucks: Gordon Bowker, Zev Siegl, and Jerry Baldwin on March 30, 1971.

Have you ever wondered why it’s called Starbucks ?

The company was initially named Pequod, inspired by the classic American novel “Moby-Dick.” But the company name was later changed to Starbucks, taken from Pequod’s chief mate, Starbuck.

Its first physical store was established in Seattle’s historic Pike Place Market, allowing customers to take home fresh-roasted coffee beans, tea, and spices.

Starbucks originally had a brown brand color and theme instead of its current iconic green branding. But after Howard Schultz joined the company in 1982, Starbucks started rebranding and swapped brown to green in 1987. Schultz was appointed as Starbucks CEO that same year.

Terry Heckler designed the first Starbucks logo. He based the famous two-tailed siren on a 16th-century Norse woodcut. Old marine books inspired him.

Later, Starbucks would embark on a series of logo redesigns, but the iconic siren consistently remained the center of its logo refreshes.

The Starbucks logo is unique for a reason. Here is the meaning of some of its elements:

• Font . The Starbucks logo’s font has always been simple and bold. It’s a sans-serif font spelling out the brand name clearly for people to read. But in the current iteration of the logo, the company’s name doesn’t appear.
• Color . The colors used for its current logo are green and white. Green is the background color symbolizing wealth, healing, and nature. White is used as the main siren symbol, representing simplicity and cleanliness.
• Shape . Starbucks has always sported a circular logo, one of the most common shapes in graphic design. A circle-shaped logo appears neat, simple, and easy to recognize. It could also mean a never-ending struggle to achieve one’s goals.
• Icon. The twin-tailed siren represents the sea and Seattle – the place of origin for Starbucks. There’s no confirmed reason why the siren was used for the Starbucks logo, but many believe it represents mystique, obsession, and addiction.

The original Starbucks logo was designed with a topless siren, a fully visible torso, and twin tails. The design wasn’t as crisp as the newer versions since a wooden carving inspired it.

The original design’s siren was enclosed in a circular ring with the text “Starbucks Coffee, Tea, and Spices,” highlighting the main products sold at the company’s first coffee shop. The logo’s first brand color was coffee-brown.

After Howard Schultz took over the company in 1987, the Starbucks logo received a significant refresh. The new logo aimed to soothe customers’ eyes by using the colors green , white, and black, representing freshness, opportunity, and growth.

This new Starbucks logo also sported recent changes in some of its elements including the siren, which is flowier in design than the more detailed original brown logo. The text has also changed to “Starbucks Coffee,” which was more in line with the company’s main product.

Starbucks underwent a logo redesign in 1992, with the siren more up-close and no longer showing its entire body. The signature twin tails are still visible through the frame with no changes to its colors, text, or shape.

But this logo design quickly became problematic for Starbucks as the design was easy to replicate. More and more people worldwide began to sell knock-off Starbucks products, making it difficult for consumers to differentiate real from fake.

In celebration of Starbucks’ 40th anniversary, the brand attempted a rebranding effort. The company decided to reimagine its original logo, probably inspired by the new hipster movement of the year.

The company received a massive backlash from the public, and the rebranding attempt failed as people had become all too familiar with the signature green branding.

Starbucks heard the plea of its customers and decided to bring back its signature branding – with a twist. Starbucks recognized its strong branding and fame, leading to its new, modern, and minimalistic logo design .

In 2011, Starbucks redesigned its logo and removed signature elements from its previous logos including the text, stars, and the black background color. The brand is famous enough that the logo is still recognizable even without these familiar elements. 

The siren is the main icon in the Starbucks logo. At first glance, it appears to be perfect and symmetrical. However, years of design have inspired designers to apply subtle changes to reflect real-world realities.

For example, during the logo revamp in 2011, the designers decided to smooth out the imperfections of the siren in the logo making her face more symmetrical. They wanted to make the logo cleaner and crisper than its original logo.

But after several years of logo refreshes, the designers were still unsatisfied. Ultimately, they decided to put in an element of humanity by making the siren’s eyes asymmetrical. The shadow of the right eye is more elongated than the left.

The Starbucks logo is effective because it tells a story, albeit not related to coffee.

Your logo should reflect what you do as a business. But, you can also consider other aspects of your brand such as what inspired it, its place of origin, and more to tell a compelling story.

For example, the center of the Starbucks logo is the twin-tailed siren which represents many things, including the novel that inspired it, Starbucks’ place of origin, mystery, and more – which leaves people thinking.

Starbucks brand colors are also unique as most coffee houses use brown or darker shades to reflect their products. Green and white are natural colors that we can see in nature. These colors soothe people’s eyes and help differentiate Starbucks from its competitors.

All these aspects of its visual identity have helped Starbucks develop memorable and distinctive branding for its customers.

9 Starbucks facts you probably didn’t know

There’s more to Starbucks than meets the eye. The biggest coffee company in the world wouldn’t be a success if there weren’t some subtle elements that helped propel it. Here are 9 Starbucks facts you probably didn’t know:

• Starbucks tables are round to ward off loneliness. Round tables appear more welcoming and make solo coffee drinkers feel less alone. The shape also helps save space and can fit more people than traditional square tables with edges.
• Starbucks coffee masters wear black aprons. You can distinguish a Starbucks employee’s rank through their apron. Coffee masters earn their black aprons by mastering everything related to coffee. So, if you have a question about your drink, look for an employee wearing a black apron.
• The Starbucks 1971 logo was considered controversial. The original Starbucks logo showed a siren with a bare torso and exposed nipples. As part of the logo redesign in 1987, designers covered up the torso with longer hair to appear more appropriate.
• You can make over 87,000 drink combinations in Starbucks. One reason why Starbucks is so popular is because of its customizable drinks – and its secret menu. The secret menu is an extensive list of drink combinations not found on the regular menu. You can research these secret combinations on the internet or make one yourself.
• Starbucks donates old food. The  donation started in 2016 when the company pledged to donate 100% of its leftover food to the hungry. Most food establishments ban this practice, but Starbucks remains committed to this Hunger Relief  program.
• Starbucks considered the Chantico drink a failure. In 2005, the Chantico was dubbed a “drinkable dessert” drink. It was a 6-ounce chocolate drink supposedly mimicking the European version of a hot chocolate. The drink failed terribly with people describing it as too rich and heavy or impossible to customize. Starbucks pulled the drink the following year.
• Starbucks spends more on employee health care than coffee beans. The company is known for its generous employee benefits package, especially in health care. In 2008, Starbucks CEO Howard Schultz claimed that the company spent over $300 million on employee health care.
• Starbucks has been sued for under-filling its lattes. Two people from Northern California sued the coffee house in March 2016 claiming that the lattes are “1/4 inch below cup rim.” Starbucks denied the allegations and the lawsuit was dismissed in January.
• The CIA also enjoys Starbucks. It’s no secret that many people want a cup of Starbucks. Even the CIA headquarters in Langley, Virginia has its own Starbucks store.

Starbucks continues to enjoy its success because of three key factors: a strong visual identity, a compelling brand story , and the commitment always to put its customers at the heart of its business. And of course, a good cup of coffee.

So, when developing your brand, remember to learn from Starbucks. Find ways to be unique and look for opportunities to differentiate from competitors.

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When we say, “Grande Café Mocha,” “Tall Vanilla Latte,” or “Venti Iced Chai,” what brand do you think of? Most of us would know immediately what brand we are referencing, but if you don’t, you’ll know soon. 

Some logos are a gateway into the brand. And often those logos, are some of the most recognizable and iconic logos of all time. When it comes to Starbucks, that’s exactly the case. 

You likely already know the coffee brand, Starbucks. The brand has locations all around the world and its customers are die-hard Starbucks enthusiasts. With Starbucks though, what has helped launch this brand is a logo that customers can immediately associate with the trustworthy, mission-driven, community-oriented brand. 

If your Starbucks knowledge doesn’t go beyond your go-to Venti Café Americano order which is delivered to you in a white cup with a green logo, then you came to the right blog. Below we’ll take you on a deep dive into this coffee powerhouse. By the end of this blog post, you’ll know not only how Starbucks came to be and how its logo was developed, but you’ll also know how you can incorporate key strategies from Starbucks’ logo design into your brand.

Meet Starbucks

Starbucks is a household name but in case you aren’t familiar with the brand, Starbucks is one of the most successful coffee shops to ever enter this space. In their quest for coffee domination, Starbucks currently operates more than 30,000 stores all around the world (in more than 60 countries). 

While Starbucks is a coffee powerhouse, the brand started from humble beginnings. Founded in 1971 by three business partners in Seattle, Washington, the original name was “Pequod,” named after a whaling ship in Herman Melville’s classic American novel,  Moby Dick . However, this name was updated to Starbucks shortly after the trio selected this name. 

The name “Starbucks” stood out for a myriad of reasons. The first reason is that Starbucks is based in Seattle, which is a port city (and would allow them to stay true to the nautical theme). Secondly, the Starbucks mascot, “the siren,” represents the Greek mythical creature from historical tales who lured sailors to “Starbuck Island.” Because of the store’s location to the port, and the three founders’ desire to lure coffee drinkers to their brand, this name was a natural fit. 

Starbucks’ Evolution

While Starbucks’ history is far more complex than we describe in this article, below you’ll find a brief history of how the Starbucks brand grew from a small flagship Seattle location to a global conglomerate. 

1971: Starbucks is founded

On March 30, 1971, Starbucks was founded by three business partners, Jerry Baldwin, Gordon Bowker, and Zev Siegl. While we refer to this coffee chain as Starbucks today, it was initially called Pequod, which was chosen as an ode to Herman Melville’s novel,  Moby Dick . This name didn’t last long though and shortly after deciding on Pequod, the name was updated to become Starbucks. 

This first Starbucks location didn’t sell brewed coffee, even though the company was targeting a coffee-drinking audience. What it did sell was bags of roasted coffee beans. The three founders learned how to roast coffee beans from a fellow coffee aficionado, Alfred Peet. 

1982: Howard Schultz joins Starbucks

Howard Schultz walked into a Starbucks 10 years after the company was founded, and after his first cup of coffee, he was sold on the brand. Howard started as a store manager but that all began to change in 1983. While on a trip abroad in Milan, Italy, Howard tasted the signature Italian coffee. Once he returned to Seattle, Howard tried to incorporate Italian coffee techniques into Starbucks’ coffee offerings. 

1986: Starbucks expands across Seattle

By 1986, Starbucks had expanded to include 6 locations across Seattle. It wasn’t until after 1986 that the company began to expand further across the United States. 

1987: Starbucks is sold to Howard Schulz

After Howard became involved with the company in 1982, the three founders sold Starbucks to Howard in 1987. Once Howard became the owner, he grew Starbucks on a national (and global scale).

1996: Starbucks experiences international growth

After already taking over North America, with stores across Chicago, Vancouver, California, Washington, DC, and New York City, the company expanded overseas. In 1996, the first international Starbucks was opened in Japan. Following this location, stores began to open in Europe in 1998 and then in China in 1999. This grew Starbucks to become the brand we know it to be today. 

Roadblocks Along the Way

The biggest roadblocks Starbucks has had to navigate are related to competition and price. Coffee is often a personal preference and coffee drinkers are loyal to their brands. That means that Starbucks had to win over the customers of their competitors and get them to choose Starbucks time and time again. At the same time, Starbucks is often associated with being a higher-end, higher-priced coffee chain. That means that for some, a daily coffee from Starbucks may be outside of their budgets. Both roadblocks are minor though because Starbucks has a business strategy that works for them and has helped the company continue to grow. 

The Meaning of Starbucks’ Logo and Starbucks’ Logo History

When it comes to creating a logo, a company usually has its design team to thank. For Starbucks, the credit goes to Terry Heckler. To prepare for this design, Terry scoured old marine books to gain inspiration. The result was what has become the world’s most recognizable and memorable logo. Keep reading to learn how this design evolved through the years. 

1971 – 1987: The first version of the Starbucks logo

This first iteration of Starbucks’ logo lasted for nearly fifteen years. As you can see in this design, the logo features the signature two-tailed siren. This version of the siren was complex with several small details incorporated to make the logo appear lavish. Beyond the siren design, text was included in this logo version. In small, block, sans-serif lettering, the wordmark read “Starbucks” at the top of the logo and then “Coffee Tea Spices” at the bottom. To frame the second set of words, two dots were incorporated on either side. 

1987 – 1992: The second version of the Starbucks logo

The next version of the Starbucks logo was released in 1987. This was around the time that Starbucks’ ownership shifted to Howard Schulz. The biggest change with this logo design was the coloring. Instead of the past brown coloring, this logo was now green. Additionally, the design removed some of the words on the logo, only keeping “Starbucks” and “Coffee.” With this updated text, the team choose a bolder font that stood out even more. The siren was still present in this design, and she was bare-bodied with flowing hair. Unlike the first logo iteration though, this design had the body of the siren visible. The final update to this logo was with the two dots that formally framed the text. These dots were updated to be two, five-pointed stars and they were placed on both sides of the circle design.

1992-2011: The third version of the Starbucks logo

In 1992, the Starbucks logo was updated again. This time, the siren was enlarged to become the prominent part of the logo circle. Instead of including her bare body, this design focused on her face and hair. If you look closely though, you can faintly see the two tails in the background. One additional change with this iteration was the typography. Shifting away from the past typefaces that were used, this font was more modern, and the letters were larger and wider. 

2011 – Today: The fourth version of the Starbucks logo

If you head to a Starbucks today, this is the logo version you’ll find. This design was created in celebration of the company’s 40th anniversary. This design is simpler with the removal of all words and the two stars. This design also swapped the colors, making the siren white and the background green. Since the siren was the sole focus point of this design, Starbucks’ design team made some changes to the siren’s face and hair, ultimately making the emblem look more approachable and human-like. 

Starbucks’ logo font:

When you think of the Starbucks logo, the logo you are thinking about is likely the version that has no words on it. That wasn’t always the case though. Years ago, the logo included the Starbucks name in a bold, block sans-serif font, that was exclusive to the brand. While the company name was once included to build brand recognition, once Starbucks developed a following, the company name was removed. 

 Starbucks’ logo color:

There are two prominent colors on the Starbucks logo – green and white. Green was chosen to serve as the background of the logo. This color is often associated with healing, protection, nature, and wealth. Starbucks is a brand built on serving ethically-sourced coffee (and serving this at a higher price point than other fellow coffee chains). Because of these three things, green was a logical color choice. The other color, white, is used for the main symbol design. White is a color that represents humility, cleanliness, wholesomeness, and purity, which again, all tie into the Starbucks brand. 

Starbucks’ logo symbols:

At first glance, the Starbucks logo may seem like a simple logo, but it is much more complex than meets the eye. To break down the logo symbols, let’s first start with the shape the logo creates, a circle. Even when the brand went back and forth with including the words, or stars, on its logo, the symbols always formed a circle. A circle is commonly used across logos because circles represent eternity and continuality. Circles have no beginning and no end, which is something every brand dreams of also having. 

The next symbol to break down is what makes up the circle, the siren (or “twin-tailed mermaid”). This image was created based on ancient Greek mythology which includes tales of sirens luring sailors to shipwrecks. These sirens lured the sailors to what is sometimes called “Starbuck Islands.” The use of this image to represent the brand was intended because the founders hoped to “lure” coffee drinkers into their store and hoped they could make Starbucks their preferred spot to grab a cup of joe. This siren has gone through several redesigns where some of her imperfections were improved, only to add those imperfections, and asymmetrical features back in, to make the brand feel more human. Having the siren be imperfect embodies the mission of Starbucks – that there are people behind the brand that care about fellow people. 

Starbucks Today

If you’re looking for Starbucks’ headquarters, you’ll want to head to where the company was first founded, in Seattle. Starbucks’ headquarters has never moved outside of its founding city. The only difference is that instead of being a small, local coffee shop, today, Starbucks is an international coffee powerhouse. 

In 2020 it was reported that Starbucks had over 32,500 stores across 62 countries. This growth is due in large part not only because of their memorable logo but also because the brand has been reported to add two stores per day, worldwide. Those stores (and the Starbucks brand) collectively generated over $19 billion in revenue that same year. While their menu may look like a set number of items, you can order (almost) anything you’d like! Today, Starbucks is known to have more than 87,000 possible drink combinations! 

As noted just now, one of the things that have helped grow Starbucks to be the brand it is today is its iconic logo. The design is one of the most versatile and recognizable logos across the world and when a logo embodies quality traits of a brand like Starbucks’, it’s no wonder consumers choose Starbucks time and time again.  

Lessons Learned from Starbucks

With a brand as iconic as Starbucks, there are many lessons we can all learn from their logo design. For starters, the logo is a unique symbol, and this unique symbol has become the face of the brand. With this symbol choice though, Starbucks intentionally selected a symbol that connected back to the brand. Nowadays, the logo (and symbol) is synonymous with this coffee powerhouse and without the logo, it’s hard to imagine what Starbucks would be. And that right there proves how powerful their logo has become. 

When you think about creating your logo, be intentional with any symbol choices, like Starbucks, and look beyond the symbols and color choices to see the deeper meanings those choices may convey. For Starbucks, the company chose elements that embodied trust and deep-rooted history. Together, this built brand loyalty among their customers. To maintain your brand loyalty, like Starbucks has, ensure that whatever you do end up choosing as part of your logo design, are timeless features that are not trendy, so that your logo can stand the test of time. Furthermore, you’ll want to ensure that your logo design has unique components that stand out from your competitors. You want to draw in the attention of potential customers and win them over, so they don’t head to a competitor’s brand because their logo dragged them in more. 

When it comes to making a memorable logo, like Starbucks, follow these above pointers. And don’t be afraid to play around with certain features (whether it’s omitting text, changing colors, or something else) to see if that achieves the result you want. 

If you’re ready to either rebrand your logo or create a brand-new logo, you don’t have to navigate this process alone. There are companies out there who you can partner with to work with creatives whose top priority is designing a custom logo that matches what you dreamed up. How these companies do this are through design contests. 

While this may sound too good to be true, we swear it’s not and these are companies are worth exploring. We’re confident that once you partner with a design contest platform, you’ll be well on your way to creating a long-lasting, memorable logo just like Starbucks.

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A History of the Starbucks Logo

Home » Blog » A History of the Starbucks Logo

Starbucks is a wildly successful company that fought its way to the top of the coffee shop industry.

They’re the powerhouse of coffee, with over 30,000 stores across the globe. They operate in close to 80 countries and are showing no signs of slowing down.

Part of how Starbucks brewed their own success lies in its branding. Their name, product, and logo are so popular and successful that they’ve become synonymous with coffee. 

You know a company has nailed their branding when its name springs to mind, instead of the product or service:

• Grab a Kleenex if you want a tissue
• Order with Amazon if you want online delivery
• Eat at McDonald’s if you want fast food
• Drink at Starbucks if you want coffee

Let’s stir the coffee cup of history and explore the Starbucks logo evolution , from their humble beginnings in 1971 to the global coffee giant they are today.

But before we take our first sip….

Fun Coffee Facts, and a History of Starbucks

We humans have been drinking coffee since the 9 th century . The story goes that shepherds noticed their goats ‘dancing’ after eating part of the Coffea plant. A nearby monk took that plant and created the first cup of coffee, which kept him up all night. 

So, in a sense, we should be thanking goats for helping us discover and enjoy cups of coffee.

But coffee wasn’t always so popular. On top of praising goats for their help, the British also had a hand in popularizing coffee. They’re known for their love of tea, and in the buildup to the Revolutionary War, it was patriotic to drink coffee instead of tea.

When discussing Starbucks’ history, it’s essential to realize that most coffee retailers at the time were scooping low-quality coffee out of cans and serving it to customers.

The three Starbucks founders, Gordon Bowker, Zev Siegl, and Jerry Baldwin wanted to do better. They dreamed of creating a safe space in Seattle, where people could come and enjoy coffee, teas, and spices. In a way, they revolutionized the way we drink coffee.

Fast forward to 1987, and the company was sold to a group of investors who rebranded with the name Starbucks Coffee and began to expand. Today, they’re the largest coffeehouse chain!

Evolution of the Starbucks Logo

The Starbucks logo and packaging have a striking look and feel that stands out and catches your eye. (Which is a smart move, as your logo is the face of your company.)

Having a memorable and recognizable logo helps to increase loyalty and brand awareness—a double whammy for Starbucks, who have nailed both.

Starbucks’ current logo is minimalist compared to previous designs. It helps them advertise on websites, print their logo on products like coffee cups and t-shirts, and other promotional materials to spread their message of inspiration and nurturing across the world.

Let’s take a look at how the logo came to be.

Starbucks wasn’t always called Starbucks. The original founders first named their company Pequod, after the whaling ship in the story of Moby-Dick. They quickly realized this wasn’t a catchy name and switched it to Starbuck, who was the ship’s chief mate. 

It’s this naval theme that led them to their very first logo design of the twin-tailed mermaid. In Greek mythology, these sirens (as they’re also called) would lure sailors into crashing their ships off the coast of small islands. The Starbucks logo would do the same, except it would lure customers into buying tasty coffee. 

The first logo used a coffee brown color (earthly, stable, nurturing), and the mermaid was fully visible, holding her tail in both hands. The circular design allowed them to spin their company name around the logo, with the word’s coffee, tea, and spices—letting customers know what’s available.

During this time, the company was bought by Howard Schultz, who wasted no time redesigning the logo. This would be the first evolution of the Starbucks logo.

Schultz hired Terry Heckler, an artist, and designer to help with the new logo. Drawing inspiration from the port of Seattle and wanting to incorporate the idea of a fresh start and new opportunities to grow and succeed, Heckler made some big changes to the logo.

The mermaid received a makeover. Her breasts were covered by her hair, she kept her crown, and she became more streamlined.

The logo’s color transformed from brown to Kelly green to represent the company’s new purpose. The words “tea” and “spices” were dropped as well. Instead, they created a new wordmark – Starbucks Coffee, with two stars connecting the words.

The stars’ use and placement helped the logo stand out and push its brand identity to be memorable and easy to recognize.

In 1992, Starbucks went through its third logo design change. The logo zoomed in on the mermaid, creating a more intimate, close-up view. Her naval was no longer visible, and only some of her tail could be seen.

The font was also sharpened with a more professional and modern appearance. The result is a logo with a cleaner look and feel, with the siren having a bigger impact and focus.

Celebrating its 40 th anniversary, the company decided to attempt a considerable rebranding effort.

With a blast to the past, they reimagined the original 1971 logo with a few modern twists and changed the logo’s color from green to black. 

The result was a failure, and they received huge backlash from their customers. Their green branding and simple logo design had become so popular and familiar to the public, that their audience refused to accept anything other than the beloved green logo.

Just goes to show you how powerful the bond is between branding and your logo.

Realizing just how strong and successful their brand had become, Starbucks dropped many of the familiar design elements from its logo—giving it a very modern look and feel, with minimalism leading the charge.

They said goodbye to the wordmark, stars, and outer ring. The logo now focused entirely on the siren, which they enlarged and gave a facelift. Her eyes, nose, and hair were redesigned to be more symmetrical, and they brought back the iconic green background color.

Starbucks explained that this latest approach allows the logo to appeal and connect with audiences worldwide.

Successful Design Elements of the Starbucks Logo

There’s so much we can learn from the evolution of the Starbucks logo. Having a unique and recognizable mascot helped them create a strong brand presence, not just in America but also in countries all around the world. 

From the very beginning, their logo was connected to their brand in the strongest possible way. There was no Starbucks coffee without the logo.

Circles are a top shape to use because they represent a never-ending journey around the world. Plus, it’s an easy shape to work with across different formats, whether you’re printing it on coffee cups (which have a curve and can cause challenges with your logo) or printed advertising like newspapers and billboards. 

Not only that, but emblem logos give off a traditional, timeless feel, which is why it was Starbucks’ go-to for so long. 

Along with their now-famous siren, choosing a bright, healthy green as their primary brand color also promotes a sense of compassion, nurturing, and kindness.

The Starbucks logo is a perfect example of how effective logo design goes hand-in-hand with its identity and branding efforts.

Over to You

By refreshing their logo, Starbucks has kept its branding up to date and lets customers know they’re changing with the times.

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The information provided on this page is for information, educational, and/or editorial purposes only. It is not intended to indicate any affiliation between Tailor Brands and any other brand or logo identified on this page.

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Kira Goldring

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Case Study – Starbucks Logo Design And Its Evolution

Coffee is a beverage that puts one to sleep when not drank. – Alphonse Allais

While gulping that lazy morning coffee or enjoying the much needed late night coffee, we cannot help but think of the very recognizable logo of World famous Starbucks. Today, we are going to discuss the logo design of Starbuck and its journey of evolution till now.

Many businesses around the world, uses mascot in their logo or other promotional elements, but giving the honor to a two-tailed mermaid is something no one could imagine, no one but Starbucks. The mermaid or siren is a mythological creature that said to lure sailors with their magical voice. Similarly, coffee seems to compel people to have it over and over again and cannot be replaced with any other beverage in the world.

The logo of the Starbucks has few revisions till now. Let’s take a walk through the journey of its logo revision.

1971- The original version was brown in color with words ‘fresh roasted coffee’ in it. It featured a bare-chested, twin-tailed mermaid inside a circular form that remained unchanged in its upgraded version as well.

1987- This logo was later revised by painting the logo in green. This logo design also features the word ‘coffee’ with 2 stars in it, highlighting coffee as its prime product. The mermaid in this logo version has her hair spread over her chest.

2011- This final logo revision is being used by Starbucks till now. It removed all the words and the starts from the logo altogether. This is now a brandmark logo that speaks for itself. It comprises of a more close-up view of the mermaid, just painted in a green and white scheme. Perhaps this is the ultimate logo of Starbucks that we are going to admire for many years to come now, or perhaps, soon we will witness yet another phase of its evolution. Either way, it gives every business to consider one question ‘Shall I consider revamping my business logo as well?’

Of course, it is your call to make, but keep the golden world in mind- ‘Change is the only constant.’ A revamped logo design offers many benefits to the business and spice things up for it.

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Case Study Of Starbucks: How Starbucks Became The Coffee King?

Supti Nandi

Updated on: April 25, 2024

Starbucks, a brand that became synonymous with coffee has created a sensation in the world with its coffeehouse culture. Have you wondered how? Well, to answer this question we will delve into the case study of Starbucks.

Stay tuned!

(A) Starbucks: A Brief Overview

Let’s buckle up for a Starbucks journey! Founded back in 1971, this coffee giant now reigns supreme as the world’s largest coffeehouse chain, with its home base in the city of Seattle, Washington.

Before diving deeper into the Starbucks case study, let’s have a look at the company’s profile-

Fast forward to November 2022, and you’ve got Starbucks waving its coffee wand in a staggering 35,711 stores across 80 countries. And when you zoom in on the U.S., you’re looking at a whopping 15,873 Starbucks hotspots. 

Here’s the scoop – over 8,900 are Starbucks-run, and the rest are running under licensed partnerships.

Now, let’s talk coffee vibes. Starbucks is the unsung hero of the second wave of coffee culture, dishing out an array of coffee delights. Think hot espresso, chill Frappuccinos, and a lineup of pastries and snacks that’s strong enough to trigger your taste buds.

Oh, and did you know some Starbucks treats are exclusive to certain locations? How? You may wonder. Well, here’s a bonus – most Starbucks joints worldwide offer free Wi-Fi. Coffee and connectivity – a match made in heaven.

So there you have it – the Starbucks saga! 

(B) Business Overview of Starbucks Case Study

Understanding the business perspective is one of the essential parts of the Starbucks case study. Reason? You will get to know how Starbucks is performing in the market in terms of financials and business.

Go through the table given below-

In today’s date, the coffee giant is flexing a market capitalization of a whopping $105.82 billion – that’s some serious coffee beans.

Now, rewind to 2023, and Starbucks made it rain with a revenue of $35.976 billion. But what about the nitty-gritty? Operating income in 2022 hit $4.62 billion, while net income settled at $3.28 billion. These aren’t just numbers; they’re the financial pillars of Starbucks.

That’s not all!

Hold onto your coffee cups; we’re diving into assets and equity. Total assets in 2022 clocked in at $27.98 billion – that’s like a treasure chest of coffee goodness. But here’s a twist – total equity dipped to -$8.70 billion. It’s like a plot twist in a coffee-fueled drama.

Now, let’s talk about expenses and profits. In 2023, expenses tallied up to $30.584 billion, but here’s the kicker – profits soared to $25.108 billion. 

That’s like balancing a delicate espresso shot with a mountain of whipped cream.

In a nutshell, Starbucks isn’t just brewing coffee; it’s a financial powerhouse, stirring up a caffeinated storm in the business world.

(C) History of Starbucks: Timeline & Key Events

Coming to the third part of the Starbucks case study, let’s delve into the history of Starbucks-

Founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker at Seattle’s Pike Place Market, Starbucks underwent pivotal changes in ownership and leadership. In the early 1980s, Howard Schultz acquired the company and transformed it into a coffee shop, introducing espresso-based drinks after being inspired during a business trip to Milan, Italy.

Schultz served as CEO from 1986 to 2000, orchestrating an expansive franchise expansion across the West Coast.

Orin Smith succeeded Schultz, focusing on fair trade coffee and boosting sales to US$5 billion. Jim Donald took the helm from 2005 to 2008, overseeing substantial earnings expansion. Schultz returned during the 2007–08 financial crisis, steering the company towards growth, expanded offerings, and a commitment to corporate social responsibility. Kevin Johnson assumed the CEO role in 2017.

In March 2022, Starbucks announced Schultz’s return as interim CEO in April 2022, with Laxman Narasimhan appointed to succeed him in April 2023. Narasimhan assumed the position earlier, in March 2023.

Beyond beverages and food, Starbucks stores offer official merchandise and select locations to provide “Starbucks Evenings” with beer, wine, and appetizers. The company’s products, including coffee, ice cream, and bottled drinks, are available in grocery stores globally. The Starbucks Reserve program, initiated in 2010 for single-origin coffees and high-end shops, has evolved. Starbucks operates six roasteries with tasting rooms and 43 coffee bars. 

The company faced controversies but maintains substantial brand loyalty, market share, and value. As of 2022, Starbucks ranks 120th on the Fortune 500 and 303rd on the Forbes Global 2000.

(D) Significance of Logo in Starbucks Case Study

Let’s delve into the details of the Starbucks logo evolution. In its inception in 1971, the original Starbucks logo featured a complex design comprising a two-tailed mermaid or siren, encompassed by a wordmark. This design was a visual nod to the brand’s early identity and origins. The mermaid, with its twin tails, was a dual representation of the sea and Seattle, the birthplace of Starbucks.

As the brand progressed, the logo underwent a significant transformation. The evolution saw a shift towards simplicity, as the wordmark surrounding the mermaid was phased out. This marked the beginning of the modern Starbucks logo we recognize today. 

The current emblem showcases a simplified and stylized green siren enclosed within a matching green ring, emphasizing a cleaner and more focused visual identity.

Beyond aesthetics, the modern logo carries symbolic weight. The green mermaid within the circle has become an iconic representation of Starbucks’ commitment to delivering high-quality coffee experiences. 

Additionally, it reflects the brand’s emphasis on creating a sense of community that extends beyond geographical boundaries.

In essence, the evolution of the Starbucks logo is a journey from a detailed and intricate design to a streamlined and symbolic representation. It mirrors the brand’s growth, emphasizing its roots, dedication to quality, and the broader cultural impact it seeks to make through coffee and community.

(E) Market Penetration Strategy: How Starbucks became the coffee king?

In this section, we will look into the key plans and actions that helped Starbucks gain a strong foothold in the beverage and cafe industry.

Starbucks continues to blend innovation and growth, navigating the ever-changing landscape of the coffee industry.

(F) Starbucks Entry in India: Core of Starbucks Case Study

In 2012, Starbucks initiated its venture into India through a significant 50:50 joint venture with Tata Consumer Products Ltd. The inaugural flagship store, which opened its doors on October 19th, 2012, found its home in the historic Elphinstone Building in Mumbai. 

The architectural design of this store ingeniously merged Starbucks’ global coffee legacy with the vibrant local culture, creating a welcoming space for community and connection. Over time, this Mumbai location evolved into India’s first Starbucks Reserve® Store, setting the stage for an elevated coffee experience.

(F.1) The Starbucks Reserve® Store Unveiled: A Coffee Lover’s Haven

The introduction of the Starbucks Reserve® Store marked a milestone in the coffee giant’s presence in India. Spanning an impressive 5,200 square feet, this store greeted customers with the intoxicating aroma of coffee. 

The entrance featured a stunning monolithic terrazzo Reserve bar, a masterpiece crafted by local artisans. Trained black apron coffee masters curated an exceptional coffee experience, showcasing rare and exquisite brews through various brewing methods. 

This Reserve Store was not just a coffee shop; it was a canvas for creating unique moments of connection through the artistry of coffee.

(F.2) Expanding Horizons: Tata Starbucks’ Nationwide Presence

Tata Starbucks established a substantial footprint, operating 350+ stores spread across 36 cities in India. In a significant achievement in 2022, Starbucks executed its largest single-year expansion in India, reaching 14 new cities. The brand’s influence spanned major cities such as Mumbai, Delhi NCR, Hyderabad, Chennai, Bengaluru, Pune, and more.

(F.3) Coffee Blends Celebrating Indian Flavors and Heritage

Starbucks paid homage to India’s rich coffee heritage by introducing special blends. The India Estates Blend, sourced from estates in Coorg and Chikmagalur, the birthplace of coffee in India, made its debut in 2013. Additionally, the Diwali Blend, introduced in 2020, served as a tribute to India’s vibrant culture and longstanding coffee traditions.

(F.4) The Tata Alliance: A Successful Partnership

Starbucks in India proudly bore the branding “Starbucks Coffee – A Tata Alliance,” underscoring the synergy between Starbucks and Tata Global Beverages.

Starbucks’ journey in India was not merely about coffee; it was about brewing connections, transcending cultural boundaries, and crafting unforgettable coffee experiences that resonated with the diverse tapestry of India.

(G) Business and Marketing Strategies of Starbucks in India

Starbucks, despite entering India’s coffee scene with strong strategies, faced challenges in a market dominated by competitors like Cafe Coffee Day and Barista Lavazza. Unlike the U.S., where coffee is a staple, India is traditionally a tea-drinking country. 

Starbucks aimed to create a space for relaxation, blending its global coffee legacy with local culture.

Let’s look at the business and marketing strategies of Starbucks in India-

In short, Starbucks’ journey in India reflects a careful blend of global strategies and localized approaches, aiming to create a unique and sustainable presence in a market with diverse preferences and cultural nuances. The success indicators appear promising, showcasing Starbucks’ commitment to long-term growth and meaningful community integration.

Note: Do you know Starbucks collaborated with Apple during the horizontal marketing in the US? We have covered it thoroughly here- Horizontal Marketing System . You can check it out for detailed information.

(H) Wrapping Up the Case Study of Starbucks

The Case Study of Starbucks unveils a fascinating journey that transformed Starbucks into the reigning coffee king. What started as a local coffee bean store in Seattle’s Pike Place Market in 1971 boomed into a global coffee empire. The strategic moves, like Howard Schultz’s visionary shift to espresso-based drinks, had set the stage for Starbucks’ aggressive expansion.

Throughout its evolution, Starbucks faced challenges, leadership changes, and controversies, but resilience and strategic pivots marked its trajectory. The decision to focus on corporate social responsibility under Schultz’s leadership during the financial crisis showcased Starbucks’ adaptability.

The engagement with local cultures, from the iconic two-tailed mermaid symbol to store designs reflecting regional aesthetics, contributed to Starbucks’ success. Key partnerships, like the one with TATA in India, demonstrated a keen understanding of local markets.

Starbucks’ commitment to quality, community, and sustainability resonated with consumers globally. From unique store experiences to tailored product launches, Starbucks consistently adapted its offerings to cater to diverse tastes.

In essence, the Case Study of Starbucks illuminates a narrative of coffee, community, and corporate strategy, culminating in Starbucks’ reign as the coffee king. 

The journey is a testament to the power of adaptability, brand loyalty, and a steaming cup of coffee that transcends borders, making Starbucks an integral part of daily rituals worldwide!

Related Posts:

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How Starbucks Became Everyone's Cup Of Coffee

Table of contents.

Starbucks Coffee Company boasts impressive stats:

• Owns 40% share of US Coffee Market
• Earns $24,72 billion worldwide
• Has 29,324 stores worldwide in 72 countries
• Over 14,000 of total stores in the United States / over 27,000 worldwide
• Conducts over 90 million transactions per week
• So popular in China, a new store opens every 15 hours
• Following McDonald's as the most valuable fast food brand worldwide (valued at $44.5 billion)

It will be very hard to achieve something Starbucks did since 1971 when the company started. There’s a lot of firsts when it comes to the company. First to introduce the new coffee culture, the first privately owned company which offered all their employees health insurance AND the share of the company.

The CEO, Howard Schultz, who might even run for president at some point , achieved something that is almost impossible — appeal to shareholders, employees, and customers at the same time. This is my giant case study on how to achieve world domination in case you want to bring an old product to the new market.

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The Starbucks Idea

The coffee culture in the United States before the 80s was nonexistent. 

Americans were used to huge cans of ground coffee and they couldn’t care less about the flavor. Even if you’d go outside your household to a dinner you would be met with a generic drip coffee or styrofoam cups of foul-tasting joe at the workplace. No one even thought about the flavor, the origin, or anything more sophisticated tied to the drink.

The 70s coffee culture didn’t exist at all.

In 1970 three college friends: Gordon Bowker, Jerry Baldwin, Zev Siegl went into the coffee business together. They set up a shop and sold roasted beans. They received the knowledge from a man named Alfred Peet (if that rings a bell, yes he is the owner of Peet’s Coffee). Alfred was one of the most knowledgeable people in the country about coffee. He knew where to source it, how to roast it. He was the first to introduce dark roasted and french roasted beans.

In 1971, the three friends opened the roastery and bean shop in Pike’s Place, Seattle’s famous tourist destination known for the Pike’s Public Market Center. Peet helped the young entrepreneurs by providing them with beans and connecting them with reliable bean providers.

The name Starbucks stuck because it’s easy to say, impossible to misspell, and has a vaguely British overtone to it. Really, we picked it because our lawyer called and told us we had to submit papers and needed a name. We didn’t know at the time, but Starbuck is the name of the first mate on the Pequod in Moby Dick. That might explain the siren logo. Some might even say it comes from Mount Rainier's Mining company Starbo . According to Gordon Bowker, they were initially going for the name Cargo House Coffee .

The business was successful enough for the trio so they opened 4 more shops in Seattle. However, no coffee drinks were being served. This was still a roasted bean retail shop intended for home use.

At that time Starbucks was competing against instant coffee cans. The quality was stark and thus the business went well. Things were about to change when the founders hired the head of marketing and sales, Howard Schultz in 1982.

The Inclination for Grit and Determination Fix Social Injustice

Howard Schultz was a child raised in poverty. After seeing his father injuring himself doing grueling manual labor, he decided he wanted to get rid of the injustice of the working class. An idea of creating and striving for an environment where employees are fairly compensated and taken care of has been set in.

In Masters of Scale interview with Reid Hoffman, Schultz described seeing his father stretched out on the sofa after suffering an injury. Howard Schultz swore to himself to make a company his father had never worked for.

“I saw my father losing his sense of dignity and self-respect. I am sure that this was caused mostly by the fact that he has been treated as an ordinary working man.” – Howard Schultz, AstrumPeople article

Schultz started working at the age of 12 selling newspapers. Since he was being athletic, Howard earned an athletic scholarship at Northern Michigan University where he received his Bachelor’s degree in Communications in 1975.

After his graduation, Howard Schultz spent three years as a sales manager at Xerox, and then he started working at a Swedish company Hammarplast , where he was selling home appliances, including coffee grinders to businesses like Starbucks.

The Starbucks founder trio took him amidst to grow the company.

In 1983, Howard Schultz gets an epiphany. He travels to Milan, Italy for some sort of conference and what he sees there changes his perception of coffee forever. In certain European countries, especially Italy, coffee was one of the more important things in life. It served as a social lubricant and the third place of dwelling between home and work. Schultz discovered what it means to have a high-quality espresso served in a proper way in a relaxed environment.

He was determined to bring this piece of coffee culture back to the United States. The founders gave in after continuous pressure from Schultz to open an espresso bar. Eventually, they gave him an opportunity to open up a coffee bar inside a store. It was incredibly popular. But the owners didn’t want to turn the coffee retail business into a cafe.

“After Milan I flew back to the United States, excited to share what I experienced. But my bosses, the first founders of Starbucks, for whom I had tremendous respect, did not share my dream of re-creating the coffee bar experience in Seattle. I was crushed, but my belief was so powerful that, in April 1986, I left Starbucks and raised money from local investors to found my own retail coffee company. I named it Il Giornale after Milan’s daily newspaper.

In 1985 Howard Schultz opened his own cafe chain - Il Giornale . He wanted to pursue the dream and went back to Starbucks owners and offered to buy all 6 stores that were operational at that time. With the help of raised venture capital he succeeded and became the CEO after the successful acquisition with $3.6M.

The hyper-growth began.

Key takeaway #1 — change is good

The determination and unrelenting belief to change the current situation is not just a helpful attribute but a prerequisite for cultural change. Staying true to the “one thing” without flinching will be the cause and the driver of change.

“An Old Product in the New Market”

Whenever something works out on an incredible scale in one market, there’s a potential of seeing it succeed in a new one. This is called introducing an old product to a new market.

For example, Uber and Lyft built an incredible business about ride-sharing. Because they have to contain the growth before they are spread too thin, that gives the opportunity to copy-cats in different markets. In the United Arab Emirates, you have Careem ( just recently acquired by Uber ), in Croatia you’ve got have Cammeo and in India, you’ve got sRide .

After something experiences great success, there is only a matter of time before someone else sees the potential and brings it back to the new market, and starts eating out the market share

Coffee was a big opportunity in the United States at that time. Howard Schultz saw with his own eyes how effective and important it is in Italy and he knew he could do something similar in the United States. To perform a similar innovative (for the new market) service you would need to take the entire concept and localize it to the new market.

Even the trends from 2004 to this day shows an upward trend in coffee:

This go-to-market product strategy was first introduced In 1957 by Russian American mathematician and business manager Igor Ansoff. The Ansoff Matrix was published in Harvard Business Review in the article “Strategies for Diversification”. In his opinion, there are only two ways to develop a growth strategy — varying what is sold (product growth) and to whom it is sold (market growth).

Market development — new market, existing product

The Starbucks go-to strategy was to bring the already established product in different cultural and geographical spaces into the new market — the coffee-culture deprived United States.

Howard Schultz’s task was to closely observe how Italians treat the product and figure out a way to bring it home with minor changes. It was impossible to expect that the new market is going to slurp macchiatos from tiny espresso cups but everyone could understand comfort and better quality. That was going to be Starbucks’s trump card.

Market penetration — old market, old product

The most obvious strategy is to sell the existing product to the existing market. With this concept there’s a little risk since the companies don’t have to educate the market with the new product, however, the growth is inhibited by competition or decreasing trends.

Diversification - new market, new product

By far the riskiest approach is introducing a new product in new markets. Not only the product needs to provide clear values, but it also has to educate its use in the new market.

Imagine bringing augmented reality technology to a country where there’s no practical use for it yet. Since there’s a great risk, it can also result in amazing success where you’re the only provider in the blue ocean market.

Most of the startups are banking on this strategy.

Product development - old market, new product

This strategy is most often used by established brands that are already known as leaders in their field. If a washing machine company introduces a new technology that also folds your clothes after washing and drying, that would be much easier to understand and adapt to their existing users.

Key takeaway #2 — do market research

When developing the new market, learn as much as possible about the product itself in the location where it’s mostly used and established. Identify all the major benefits and think of the most significant values that would succeed in the new market

Eco-Conscious, Friendly People, and Profitable — Starbucks’ Triple balancing act

Howard Schultz had an idea to build something that is almost impossible to imagine and can exist only in Utopia. From the start, he wanted to serve with equal importance towards customers and employees.

This is almost impossible to achieve since on one end the business investors want to see money coming in, which in most cases means lean running staff with lower wages and higher-priced products. The staff, or “ partners ” as Howard Schultz calls its employees, are not only compensated a fair wage ( between $10 to $15/hour according to Glassdoor ) but also have healthcare insurance and discounted stock options for company shares.

Howard went even further, offering full tuition coverage through Arizona State University's online degree program .

This idea was most likely outrageous to shareholders. Everyone will get a piece of the company’s pie?

In a Tim Ferriss interview with Jim Collins, the author of Built to Last and Good to Great mentioned the final lesson of his mentor and all-around management superhero Peter Drucker:

“The management isn’t about being more efficient all the time, but it’s also being more humane at the same time.

Striving for workplace quality for the employees was thus one of the main values the CEO implemented in the company.

The interesting analogy is Jordan Peterson’s theory of order and chaos (yin and yang) where one side represents the profit that company must achieve by ruthlessly cutting back the cost in the workforce and the other side where the conscience of doing the right thing for your people brings satisfaction and peace to the workplace which is a proven necessity for customer-facing businesses.

Key takeaway #3 — happy employees make happy clients

Treat your people well. When you’re in the service industry the customer satisfaction and treatment are at times more important than the actual product. And happy employees make happy clients.

The Product

Better coffee.

To coffee drinkers, there are not a lot of things more important than a good coffee in the morning or during the day. By today’s standards, Starbucks drinks aren’t at the level of barista artisans and coffee aficionados. But when the shops started opening in the early 70s, 80s, and 90s, the espressos and lattes were vastly different from all the other stuff people were drinking.

Coffee is generally roasted in three ways: light, medium, or dark, depending on the time dedicated to the coffee beans’ roasting.

In a light roast, you would notice a fruity and acidic taste. Coffee beans are actually considered fruit and are sometimes called cherries. That is the reason you taste light roast as acidic with fruit notes.

In Medium roast, the coffee tastes the sweetest. The glucose levels reach the point where the glucose starts to break. Coffee roasters would say the medium roast is the most balanced since it’s not bitter nor acidic but something in between.

In dark roast, you can taste the bitterness due to burned beans.

Coffee quality comparison

Starbucks predominantly use dark roast coffee which also represents the majority of the coffee that is being consumed in North America. As mentioned, the coffee quality was much better than instant abominations in the early 80s; however, it definitely cannot measure up to artisan roasters.

There are two main reasons:

1— Dark roast is cheaper and can be produced in mass quantities. Similarly to green tea, the light roast-worthy beans are grown in shady, high-altitudes where it produces the most sweetness. High-quality matcha (powdered green tea leaves) is intentionally kept in the shade so it produces more photosynthesis and better taste. Since Starbucks has to supply tens of thousands of shops, they have to bring the mass supply to the cafes. Brian Stoffel from El Toledo roastery in Costa Rica says: “It would be financially stupid for a large chain to buy high-quality coffee beans and use them for dark roast coffee.”

This brings us to…

2— The coffee has to taste the same across the cafes to guarantee uniformity. With dark roast, the flavors of the beans are getting covered up in the same way as overseasoning a dish or overcooking a steak.

But it wasn’t just about the coffee alone. The branding kicks in and people pay for something they want to eventually become. Drinking Starbucks drinks meant they are sophisticated, culturally progressive individuals who enjoyed the premium experience of coffee-drinking culture from fashionable Milano streets.

The slim and elegant takeaway cups proudly wore the green siren logo so the passers-by noticed the person drinking that exact coffee. These cups were different from styrofoam cups in the office or fast food joints.

A similar tactic was used by Apple with the launch of iPods and white earbuds. The iPod was a cool new gadget you had to wear to be relevant in modern society. Apple made it in such a way that people noticed which users had iPods — because they plugged white earbuds into them.

This was a genius idea because the users were immediately differentiated from other less-cool mp3 gadget-using people. Secondly, this was a perfect silent word-of-mouth strategy. If local influencers were seen using white earbuds, everyone else wanted to get on that trend. This strategy is viral in concept and is used by many companies; however, it’s harder to implement it on a distinctive level.

Later on, Starbucks adapted to the marketing with something called “horizontal offer”. It wasn’t just about the dark roast and espresso shots. Young budding students wanted something sweet and mocha just hit the note between coffee and rich chocolate fudge. Why not having both in one product?

Later on, Starbucks started offering teas and snacks. Snack is bringing in a substantial amount of revenue. The shops are using the display of sweet pastry or savory egg sandwiches like any expert pastry shop in Europe. And there are not many people who can resist a croissant, cinnamon roll, or blueberry muffin with their americano or latte.

The food is bringing in more than 20% of all revenue . The pasty was the start, but the company followed up by offering breakfast sandwiches. The adaptation to the market goes even further.

With the recent diet trends in health and fitness, Starbucks has you covered with gluten-free, protein-rich snacks.

With all the addition and expansions to serve a larger audience, it’s inevitable to create resistance groups who blame Starbucks as a commodity coffee provider. And they would be right, it has become that because their system of sourcing beans has to ensure the stock supplies for thousands of shops. But by becoming the main coffee dealer to the masses all the micro-roasters and man-bun wearing, tattoo-sleeved barista artists can fall on their knees and thank the mighty green Siren for creating a market for them.

The need for coffee has increased substantially with the introduction of better coffee, so it created another pocket of niche providers of premium roasted bean roasters.

The price of a cup

Most of the coffee shops live well because they can afford hefty margins. An 80% markup is a standard in the coffee business, especially on the higher-end brews. According to the Small Business Development Center’s 2012 report, food costs take up about 15 percent of revenues on average. The average coffee shop then has a gross margin of 85 percent.

Starbucks margins must be pretty loaded then since they buy tons of coffee from a few sources. According to Coffee Makers USA, the actual coffee in a grande Starbucks cappuccino costs about 31 cents.

For a commodity product such as coffee, Starbucks drinks are quite up there on the more expensive tier ranging from $2.15 for a tall drip to $5.95 for a seasonal frappuccino concoction. But taking into consideration the physical positioning ( Chapter 5 — Coffee Locations ), paying off employees and staff the actual margin per coffee sold are 7% .

Historically, Starbucks has been raising the prices per cup over the years. Since it has poured a lot of equity into maintaining the brand image, it can afford to have a steeper price than its competitors (McDonald's and Dunkin Donuts). Instead of losing the price-sensitive customers, Starbucks differentiates itself from the before-mentioned companies and thus keeping the brand image of a premium java provider.

However, as Tucker Dawson from PriceIntelligently mentions, the prices aren’t increased across the whole product offering . The high-margin items have stayed the same.

Product differentiation

By having a strong and recognizable brand, the company can afford to put out merchandise. Starbucks holiday-themed mugs and localized artwork on them are a big part of the exposure. The merch cabinets and tables are usually near the counters or areas where there’s a longer dwelling time.

The revenue isn’t coming just from the beverages alone. Starbucks did an amazing job of offering non-caffeinated beverages including kids drinks and teas which were introduced after partnerships or acquisitions of Tazo and Teavana.

Starbucks started to diversify its products, pushed them into retail space, and also added teas.

The big drivers are also snacks, wholesale beans, before-mentioned merch, and coffee equipment.

Key takeaway #4 — diversify and expand

While the product is one of the key components of a successful business think about its potential upgrades. Keeping the core you can diversify the offering (and acquire new revenue channels) by expanding into different verticals but staying inside your core company values.

Experience is More Important Than The Product Itself

With a distinctive brand identity, Starbucks shops are easily recognizable anywhere in the World. For a global brand, this is one of the mandatory elements. Each franchise is slightly different than the other — Starbucks in the posh downtown area will have a different feel than the one on the Student campus or at an airport.

But each store follows certain guidelines which are prescribed. In tech and startups, product development follows a concept called minimal acceptance criteria . In other words, what are the lowest common denominators the dev team needs to do before it can be rolled out as a published version.

For Starbucks Cafes, even though the store managers have a certain freedom to run and maintain the facility, they have to ensure to deliver the core Starbucks qualities.

• Indie playing music
• Comfortable (community) tables for remote work
• Reliable wireless connection
• Charging Outlets

These shouldn’t just be taken for granted. People love some sense of predictability in their lives. How many times have you been on the lookout for Starbucks when visiting a new country just to take advantage of their wi-fi connection and use of restroom? From that perspective, Starbucks serves as a transactional facility offering other services which don’t have much to do with coffee.

The main idea is, coffee is not the product that is being sold at Starbucks cafes — the whole thing is a social experiment of creating a meeting place between people. It serves as some sort of oasis for meeting up with friends, having a snack and a cup of coffee in a comfy chair while listening to the latest Indie playlists . Starbucks is less in the coffee business as is in people’s business as well.

“It’s not Starbucks coffee you are getting, it’s the Starbucks experience. “

By calling your name and writing it on the cup, it doesn’t just inform the customer that their drink is ready. It allows a more personalized service since we love hearing and seeing our name.

Smells and sounds

Starbucks Sounds

Chances are when you go to Starbucks you don’t ever hear the music. But it plays an important role nevertheless. Starbucks playlists are carefully curated to help create that ambiance of a neighborhood coffee shop.

It has been a piece of the Starbucks experience for over 40 years already . The songs and tracks are carefully curated way ahead of time. These handcrafted playlists usually consist of indie, feel-good songs, pop, alt-country to season-themed or even classical playlists during holidays.

In 1999, Starbucks even acquired a Bay Area music store to launch its own branded coffeehouse and later on, even a record label. In the early 2000s, Starbucks sold CDs in the store until the format decline. In 2016, Starbucks partnered with Spotify . Through the mobile app integration, Spotify plays music as part of the app. In-store listeners can take a look inside to identify the artists and save the tracks to their playlists.

Holly Hinton and David Legry, the in-house music curators, are responsible for what gets played. What sounds like the best job in the world, actually is. Their sole work is searching for the right tracks and artists that they can see are fit to be played in the coffee shop.

In an interview with Fast Company , Holy Hinton said:

“We want our customers to walk in and have a ‘What’s that song?’ moment. We want them to hear interesting, cool music that they might not hear when they turn the radio on. It’s music that we think is cool and would sound beautiful in the coffee shop. It’s the music that we’d want to hear on Sunday morning when we’re reading the paper and drinking coffee. It’s a friend-to-friend personal. And we’re lucky to be able to be a part of that.”

To localize the experience, every region is slightly customized regarding the music, while still carrying the same vibe Starbucks customers are used to. This way, whenever a customer comes to the cafe, within the first few seconds, they feel accustomed based on the music alone.

The interior design

Every piece of furniture and interior is carefully planned to conform to the standards of the homey coffee place.

To get their store right, Starbucks interviewed hundreds of coffee drinkers to get as much information which they could use to build a perfect coffee shop. The overwhelming consensus actually had nothing to do with coffee; what consumers sought was a place of relaxation, a place of belonging.

If we go back to Howard Schultz’s deciding moment from the Milanese coffee shops, it shows he managed to do just that. Create a community space as a second home. It’s somewhere where people meet, it’s where you can take someone for a first date or even get some work done at the large community table.

In the book Starbucked, freelance journalist Taylor Clark claims, that “The round tables in a Starbucks store were strategically created in an effort to protect self-esteem for those coffee-drinkers flying solo. After all, there are no “empty” seats at a round table.”

If we looked at the interior, the counters, chairs, and wardrobes are built out of natural materials like warm woods and stone. In some stores, you would find cozy armchairs as well. With the Shared Planet initiative , they doubled down with environmental sustainability in mind and employing local craftsmen to do the job. The stores are built from reused and recycled materials wherever possible.

Most of the new stores that are being built are a part of the LEED Certification program (Leadership in Energy and Environmental Design).

Starbucks differentiates from three general looks with the addition of concept designs:

• Heritage coffee houses reflect the history of the place where the store is located. At Pike Place, the coffee shop reflects the merchant trading roots with worn wood, stained concrete or tiled floors, metal stools, and factory-inspired lighting. Even more sophisticated is the New Orleans inspired coffeehouse showing the rich music history.
• A “Louisian merchant in the early 1900s” inspired heritage coffeehouse with vintage trombones light fixtures. Located in French Quarter, New Orleans.
• Artisan stores echo the industrial past of urban markets, taking inspiration from the Modernism of the 1930s. This motif celebrates simple materials like exposed steel beams, masonry walls, factory casement glass, and hand-polished woodwork in a creative gathering place for culture and the arts.

• Regional Modern are localized stylized coffee shops. The interior is spacious. comfortable and welcoming. The bright, loft-like, light-filled spaces punctuated with regionally inspired furniture and culturally relevant fabrics create a calm and contemporary respite from the clamor of the fast-paced world.

• Experimental — with growth and a plethora of locations comes more daring and innovative designs. Unique designs such as the reimagined drive-thru in Colorado , the Swiss Train contemporary mobile coffee space from Geneva Airport to St. Gallen or one of the beautiful Shinto shrine-inspired coffee shops in Japan

‍ Starbucks Reserve

To combat the upscale coffee market which ironically has to thank Starbucks for creating fertile grounds of demand for premium coffee, Starbucks started opening up so-called Starbucks Reserve stores. These are luxurious, beautiful, and magnificent stores where they roast premium, rare beans and experiment with different brewing techniques.

CNN Money described the store concept as "an open, marketplace-style" with a Princi bakery counter, a full liquor bar, and a Reserve coffee bar, with tables, lounge areas, and two fireplaces.

"Our Reserve store takes the best of coffee craft as well as artisan baking and layers in a marketplace-style customer experience creating a space that has both energy and moments of intimacy," — Liz Muller, VP of Creative, Global Design & Innovation at Starbucks

Coffee shop locations

In any high-traffic area in the city where Starbucks is located, you almost have a feeling their shops are everywhere. You would be partially right — Starbucks are strategically located in areas with high appeal. Similarly to Walgreens, Starbucks chose the concept of the convenience store, always located in an area of larger foot-traffic .

Source | A snapshot of Starbucks shops in Seattle

Arthur Rubinfeld who is responsible for Starbucks’ location selection, explained there are about 20 or so analytic experts around the world who are assessing different factors of the appropriate area for the new Starbucks shop .

Key takeaway #5 — spoil your customers

Think beyond the product and identify what else can you do for the customer to add you in their daily, weekly routine. Customer support excellence is mandatory, so think further and in the direction of the place’s ambiance including smells and sounds.

Breaking down the Brand and Messaging

Bill Macaitis, former CMO of Slack said it best - “The brand is the sum of all customer touchpoints your customers have with you at any point”. With the food and beverage category, this is even more important.

By introducing and creating a culture of coffee drinking, Starbucks had a major opportunity to create intimacy with the customer. In Italy, coffee culture is a part of every day and the same culture was slowly getting familiar to the new audience.

Because of the personal nature of coffee and frequency of visits, this relationship-bonding happened much faster than in other fast-food joints, especially since in the early years of Starbucks there was no competition.

Brand and product

The bright white cups with the green siren are the first noticeable brand. But it goes beyond that. You will notice that Starbucks never offers any sort of discounts or actions like buy-one-get-one-free. That’s sort of action dilutes the premium feel of the brand. You can get a free coffee drink for your birthday, but the underlying reason for that is for a customer to develop a positive connection with the brand and company.

The most valuable assets of the regular Starbucks coffee shop can be broken down:

☕Free reliable Wifi - besides oxygen, water, and sleep, the online connection has become a necessity in modern civilization. Whenever you’re in a new place and you need to connect, one of the first options would be a Starbucks shop.

☕Comfortable seats and community tables - whether you’re there to take a breather or putting some hours of online work or organizing an impromptu study group, there’s a Starbucks location that can provide those demands. Most of the Starbucks are generously equipped with charging outlets as well, so you can get another drink after your focus is starting to drop… and then another… And another...

☕Friendly baristas - customer service is ingrained in the retail work description yet rarely done the right way. With L.A.T.T.E. method (Chapter 8 - Disciplined Action) and general training of Starbucks partners , each interaction with the customer is there to provide a positive experience. Calling people by their name, timely service, and the patience of crafting ridiculously complex drink orders .

☕Brand colors and materials — the nature-influenced interior with dark colors and wood finishes are giving a feel of hominess. Sometimes a Starbuck visit is just a pause you take in a day to relax your eyes.

☕Music and smells — coffee and snacks just smell amazing. Let’s take that for granted. The music serves a purpose as well as bringing an ambiance that is great for having a conversation or focusing on work (or your date).

Key takeaway #6 — positive interactions

The brand is the sum of all touchpoints the customer has with the company. This goes beyond the product and customer service. Think about every single interaction customers have with you and make them positive.

Starbucks Master Example of Mobile Retention and App Rewards

Starbucks mastered the mobile game at the right time. Dabbling with mobile technology since 2007, Adam Brotman spearheaded the platform to maximize the effect. The big challenge was to align it with the brand.

“We don't look at mobile in a vacuum. We have an overall digital strategy that's all about building relationships with our customers, and that strategy runs across a number of digital touchpoints. We're looking at mobile, Web and social to think more holistically about how we engage with our customers and tell our story." — Adam Brotman, Chief Digital Officer

In the Manifest survey in 2018, 500 smartphone owners rated their satisfaction using food apps. Starbucks had the most popular and regularly used loyalty rewards app — 48% of users used it on a daily basis.

Four years later, Starbucks remains one of the most popular apps, ranking number 6 on the list of most downloaded Food & Drink apps. 

The mobile switch paid dividends with time. Instead of support and enhancing physical visits to the store, the channel began bringing in 23% of all the revenue.

Ordering ahead of time and user experience

For a food mobile app to be successful, it must bring value to the user, be easy or even fun to use and it should have entertaining, dynamic content.

The design has to adhere to rules of the brand, achieve a consistent visual look and continuity across all touchpoints.

The mobile app design is no different than the rest of the materials Starbucks uses.

Digital Engagement paid tremendous dividends for the company.

Starbucks CFO Scott Maw said almost all of the company’s same-store sales growth has come from customers that have digital relationships with the company and those that are in the Starbucks Rewards program.

User-friendly design

This is the minimal and easiest thing to leverage on. With a strong brand, it should not be hard to create an appealing visual interface and create logic flow and transitions or continuation to the desired action.

Engaging loyalty program

Retention is the name of the game. If a customer trusts you well enough to download your app, you have a unique opportunity to convert him or her to be a regular user.

Starbucks has a similar strategy with the reward system. Every day there’s a slight reward, whether it’s collecting points or showing the current mouth-watering warm drink inside the app. It’s sticky and you can’t help but wish for a warm beverage.

Mobile pay and ordering

The North American market is known for heavy mobile use . By prepaying and using the device to quickly go through the ordering process, the customers feel more efficient and slightly more an advantage than the other poor souls who still buy their coffee with credit cards or cash.

Integration with other platforms and services

Partnerships are ways to get tons of new users with one big swoop. Spotify acquired one million users a few days after partnering with Facebook (Source) and Facebook had one sexy product update from it as well. For similar reasons, Starbucks used Spotify to enrich the experience of the mobile app.

Now playing highlight in Starbucks stores (Music is a big part of the brand and having perennial "Shazam" embedded brings seemingly insignificant, yet positive experience.

UX/UI — breaking down the mobile app design

Out of this world personalized experience.

The app remembers your favorite order. This is ingenious. We’ve mentioned how coffee represents a daily habit - if Starbucks manages to infiltrate itself into your habit loop, they’ve won. They have become a part of your daily routine. Stacy always stops at the same drive-through Starbucks, orders her Grande Latte with Soy Milk at 6:15 am before she checks-in at her job. When that’s her daily or even only a few time per week routine, the LTV for that kind of customer is absolutely amazing!

Every little detail counts. For instance, here’s the customized greeting each time a user opens the app’s Home tab.

Gamification

Most addictive phone games always give you something to do if you’re not using them for a while. From Candy Crush Saga to Supercell’s engineered mobile drugs like Clash of Clans and Boom Beach, the mechanics of engagement are carefully predicted for maximum time and cash spend. These games start with low difficulty. They are fun, colorful, and offer an entertaining introduction to their mechanics. But you can play all day, and after a while (on a free tier) you’re locked out of the game.

To continue playing, you can either (literally) buy your time or increase your chances of success with extra loot, power levels, or something similar.

Starbucks uses a similar principle of gamifying its mobile app. There’s a lot of value upfront (pay with a card, skip the line, earn credits for free drinks) but it serves the company’s profit. You get hooked to those stars (credits) which are stacking in your beautifully designed mobile app.

There are also challenges for extra Starbucks points (who can say no to double credit days?)

With the app, Starbucks gets you to try new products and thus increase the range of products you are consuming AND it gives the company an opportunity to increase the average order revenue per customer.

There’s a thin line between being overbearing and being just enough engaging. And at the same time, they have to be very strategic on the number of features offered. Sean Ellis , the OG Growth hacker said the product is ready to ship once all the unnecessary features are taken away (kind of the same mentality as per good design). Luckily with MILLIONS of users, Starbucks can apply some Data Science magic and figure those timings for every type of person.

Personalization goes even further - it tries to give a similar experience as to visiting the store ( source )

Starbucks Loyalty Program on triple-caffeine nitro power

The Starbucks Rewards are dead simple - the more you spend the more stars you get. Besides the stars, the rewards program offers birthday rewards, phone payments, paying ahead, free in-store refills and special offers and events for members. As expected the experience is personalized for each user.

The Rewards work like gangbusters! More than 14.2 million active members in the U.S. are invested in the loyalty program and the mobile strategy has seen an 11% growth in users in Q2 2018 . The gamification of the program and “spend more, earn more” in some cases represent 39% of the entire chain's sales .

Here’s what’s ingenious about the mobile program. Even though there are people who prefer to have the minimum number of apps on their phone and think twice before opening the doors for the elite club on their smartphone storage, the Starbucks app is a trojan horse of benefits - even if you don’t care about collecting stars, it’s tough to say no to the free birthday drink or the convenient mobile pay.

Online Ordering and easy payments flatten the friction of getting the product. Just like the Amazon 1-click purchase or Slack’s onboarding sequence , the same goes for picking up a mocha and Petite Vanilla Bean Scone. At first, Starbucks had some issues, since the mobile members had to wait in line just like the others, but Starbucks responded by adding dedicated stations for mobile order-ahead customers.

Members can skip the waiting line and enjoy the jealous looks while feeling elite of themselves.

The beauty of the app isn’t giving one big benefit of a quicker caffeine shot to the member, but it serves as an upsell marketing tool. The Starbucks app is a delivery method for presenting new items ahead of time. These generate interest and coupled with email notifications, it gives their customers something to look forward to.

To keep the retention flat, the Rewards program has “punishment” traits tied into it. If you’re not using the stars for visiting the cafes you start losing them. This psychological trick, known as The Endowment Effect , helps to nudge those people who are affected more about losing something they already have.

The Mobile part is one of the main drivers of customer retention and has proven to raise the average order size per customer. Since the frequency of orders and visits is so high, the LTV per customer contributes to that impressive double-digit growth in the first years.

Key takeaway #7 - APP A mobile app for a product that is being used on a daily basis and is in the lifestyle category is not a nice to have, but almost mandatory. If you want to stay a part of your customer's daily lives, bring the entertainment, rewards, and gamification to keep retention and customer satisfaction high. You will be rewarded with increased LTV.

The Success Flywheel of Starbucks

The easiest way to figure out and identify the success of a company is to apply the try-and-true framework. Jim Collins, the author of Good to Great, Built to Last claims all mega-successful companies have to figure out the Flywheel principle .

To become an unstoppable juggernaut in its own field, Starbucks had to align 5-6 different elements in three categories:

• Disciplined People
• Level 5 Leadership
• First Who… Then What
• Disciplined Thought
• Face the Reality
• Hedgehog Concept
• Disciplined Action

Culture of Discipline

• Leveraging the Technology

Imagine the concepts as drivers of one giant flywheel. Let’s say you’d want to move a giant stone wheel that sits on an axle. It would take a lot of effort to get it moving at first. After gaining speed it would need less and less power to keep it going. After gaining momentum, the same wheel would run on its own with little interaction. Just like the extremely simplified quote says; “If it ain’t broke, don’t fix it.”

Disciplined people - Starbucks Level 5 Leadership

Excerpt from Good to Great -> “Level 5 leaders display a powerful mixture of personal humility and indomitable will. They're incredibly ambitious, but their ambition is first and foremost for the cause, for the organization and its purpose, not themselves. While Level 5 leaders can come in many personality packages, they are often self-effacing, quiet, reserved, and even shy. Every good-to-great transition in our research began with a Level 5 leader who motivated the enterprise more with inspired standards than inspiring personality.”

There’s no doubt, Starbucks CEO Howard Schultz possesses the characteristics and personality traits of a Level 5 leader. The ambition alone to introduce a new cultural concept in a new market sounds incredibly daunting, but to play it right with the shareholders, customers and their own people sounds impossible.

But that was the initial idea, a moral standard. The mission statement of Starbucks is:

“to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”

Let’s break this down into two pieces.

Inspire and nurture the human spirit .

The people, customers, and partners (staff) are the most important assets of any company. The first part of the mission statement explains that in a split-second. The relationships within the company have to be nurtured and supported while exuding warmth and friendliness.

Howard Schultz has shown respect for the mission by developing programs for their own people, which include free education, health insurance and even a share in the Starbucks company.

“One person, one cup and one neighborhood at a time .”

The second part stresses the importance of gradual improvement. Each interaction with a customer, each cup of coffee made hold a large amount of responsibility to deliver the right experience. The neighborhood part reminds the staff and the customers that the stores pay special respect and attention to the place where they are located.

In the article Inside Starbucks’s $35 Million Mission , author Sarah Kessler describes how Starbucks runs the “ Leadership Lab ” — part leadership, part training conference for 10,000 store managers.

Disciplined thought

Face the Reality — When stuff gets hard, leaders don’t turn away from the problem or worse, get busy with mundane tasks, deceiving themselves they are working. Closing your eyes to the reality means you’re on a great way to a downward spiral.

In 2008, Howard Schultz got reinstated by the board as CEO. The sales and shares were dropping. The brand and the culture of Starbucks were deteriorating rapidly. The magical experience was a shadow of its former self.

Schultz decided on a radical idea to close all the stores and retrain in order to inflict the importance of the Starbucks vision and mission. Tied into this transition was closing numerous shops and letting go of hundreds of employees. The ordeal cost the company 6 to 7 million dollars .

In 2018, Starbucks closed the doors again in order to put the staff through racial anti-bias training. The temporary closure cost the company between $15 - $20 million dollars

But it was necessary and long needed. The company picked up from the bottom just like in Drake’s song and has been rapidly growing in the world’s map as well as on index stock charts.

The Hedgehog Concept

The term Hedgehog concept introduced by Collins is some sort of a marriage consisting of a Venn diagram and three major ideas. Jim Collins thinks that in order to have a chance to be the best in the world you have to possess all three:

• The Elite Skill - You will have to be the best in your area of expertise. Constant learning, innovating and moving the boundaries are expected from the movers and shakers of the world.
• Deep Passion - Someone who grows a business will eventually (and continuously) encounter major obstacles where the skill isn’t going to be enough. The grit, powered with a deep passion and a reason why is arguably even more important than the knowledge alone.
• Ability to generate revenue - Understanding of what drives the economic engine is the third piece of the puzzle that completes the concept. No business can survive without sustaining itself and its people financially.

Schultz possesses all three: the Stanford education armed him to become shrewd and dangerous in the business world with a deep understanding of the economic machine while he stayed in love with the company and continued to deeply care for its people and the customers.

The second part of the hedgehog concept is the sheer simplicity of your objective. When it comes to specializing and becoming the best in the world, you need one clear statement which completely prevails over all the others.

The hedgehog is the exact opposite of the fox concept. Foxes are cunning, smart and resourceful animals who take any opportunity to get ahead using any tactic they can think off. Yet when they encounter and attack the hedgehog, the hedgehog simply rolls up into a ball and protects itself with its spiky hide.

The hedgehog companies have one major driving goal that is ingrained as the cornerstone of its business. In Starbucks, it’s not the coffee quality, but it’s the deep desire to create an experience for their customers. Everything is tied into this.

Sometimes, achieving massive rapid growth for the growth sake reveals cracks in the system if it’s not solid. In 2008, when the company was on the decline, Schulz looked at the strategy of the past few years and, in a letter penned company-wide, explained that Starbucks had “invested in infrastructure ahead of the growth curve” and it was time to “shift our emphasis back onto customer-facing initiatives.”

Imagine, the Starbucks insane growth pace required to hire 1,500 new employees a week.

Disciplined action

The success of anything in our lives is in the hands of people. It always is the #1 element in any company.

“In determining the right people, the good-to-great companies placed greater weight on character attributes than on specific educational background, practical skills, specialized knowledge, or work experience.”

When the quality of the work started slipping. Schultz had to close down hundreds of shops for a training day. It was a necessary decision to refocus, restructure and boost Starbucks employees to work and deliver on the right things and to deliver the experience as it was intended in the first place.

When faced with a difficult customer or a problem, the Starbucks partners (employees) are taught customer service by using a L.A.T.T.E. system. The acronym helps baristas deal with any situation in the store.

• L isten to the customer
• A cknowledge the problem/situation
• T ake actions and solve the problem
• T hank the customer
• E xplain what you did

The simple system isn’t there just to provide clear guidelines but it also boosts motivation and willpower among employers. In the book, The Power of Habit , Charles Duhigg wrote that the LATTE system prevented the customer service meltdown , and sustained willpower throughout the day.

In the end, customer service is there to deliver and exceed the experience which is tied to the brand. Nothing is as important as delivering the service. 

“[Employees] are the true ambassadors of our brand, the real merchants of romance and theater, and as such the primary catalysts for delighting customers. Give them reasons to believe in their work and that they’re part of a larger mission, the theory goes, and they’ll in turn personally elevate the experience for each customer–something you can hardly accomplish with a billboard or a 30-second spot.” — Excerpt from book Onward, Howard Schultz

Technology Accelerators

For a globally recognizable brand like Starbucks technology plays a major role in the expansion. The Starbucks app and the emails alone played a significant role in the company’s growth.

According to Collins, technology accelerators have to be carefully selected. Companies had to sift through the emerging technology, identify and select the right ones and gradually introduce them in the business model.

The Hedgehog Concept would drive the use of technology, not the other way around — Jim Collins

Companies that jumped the gun burned badly.

In fact, Jim Collins discovered that more than 80% of great companies didn't rank technology as one of the top five ranking factors for success.

“Those that stay true to these fundamentals and maintain their balance, even in times of great change and disruption, will accumulate the momentum that creates breakthrough momentum. — Jim Collins

Down to the core, Starbucks has one secret ingredient to thank for — knowing their customers. Data analytics. According to Starbucks, this function uses “ methodologies ranging from ethnography to big data analytics … that help support Starbucks pricing strategy, real estate development planning, product development, trade promotion optimization, and marketing strategy.”

Starbucks contracts with a location-analytics company called Esri to use its technology platform that helps analyze maps and retail locations. It uses data like population density, average incomes, and traffic patterns to identify target areas for a new store.

The Crawl, Walk, Run Concept

The gradual introduction of technology is a part of the hedgehog concept. Technology is a major proponent of business growth however if it doesn’t tie into the one simple concept , the company has to be disciplined enough to say no to new opportunities.

Eventually, they can adapt the technology in their concept which turns the massive flywheel forward.

In Starbucks sense, they seem like they embrace technology. They started out with gift cards and pay-ahead mobile purchases. The next step was adding the Starbucks Rewards program to cultivate upsells and raise the LTV per customer. And today with big data, AI, and predictable algorithms they maximize the relationship with the customers.

Key takeaway #8 — the flywheel concept

Successful companies that persevered and thrived with time have found and adopted the Flywheel concept. Focusing on the essentials of the business, working with the right people in the right places, and maintaining discipline is the only way for continued sustainable growth.

Starbucks Vs the World

Competitors.

Starbucks enjoyed the blue ocean marketplace as a premium coffee culture experience provider. 

But as soon as competitors noticed Starbucks discovering a new opportunity they had to react quickly. McDonald's and Dunkin’ Donuts were the big ones that introduced their own versions of coffee-to-go. Better than instant coffee and convenient while on the go, the two competitors did enjoy new revenue stream of introducing coffee; however, as companies, they had to keep the focus on what they are good at — McDonald's with their fast food burgers and fries and Dunkin’ Donuts with well… donuts. DD does serve coffee but had no intention to put more emphasis on it until the late 1990s .

Starbucks kept the lead in the coffee concept because of its focus on the coffee culture and holistic concept of their brand, especially customer service. This point can be seen as soon as you look at international markets. Dunkin' Donuts’ international revenue in 2018 contributed less than 4% of total sales, while roughly 30% of Starbucks' consolidated net revenues in the same period were attributed to markets outside America.

When international expansion goes right

When you get it right and you know you have the brand, processes, and culture down, you can move outside. When Starbucks expanded its adopted “Coffee culture” to new markets it could follow its own tracks again. In many countries, especially Asian nations the idea of a coffee culture was new, fresh, and exciting.

To overcome the culture gap, Starbucks sought partnership through direct investments and joint ventures instead of direct franchising . This solved two major problems.

First, they relied on local retailers who already had experience and experience in the local markets. They married the coffee culture idea with market research of the new areas to discover regional customers’ tastes and preferences. After that, they just had to deliver the employee training, workflows, and the product itself.

Secondly, they acquired and absorbed the entire pieces of coffee markets , such as Coffee Partners in Thailand and Bonstar in Singapore. All in one big swoop.

But even today a Starbucks café is opened every 15th hour in China. It already operates more than 3,000 stores in China and plans to add 2,000 more by 2021 . Seoul has the most Starbucks cafes in any city ( 284 ).

Starbucks is present in 6 continents and in more than 72 countries and territories. But it wasn’t always smooth sailing for the old Starbuck.

And when it doesn’t go so well

While Starbucks had amazing success in Asian countries, they hit a snag in Australia.

In 2008, they closed two-thirds of all stores.

The reason?

Australia is already known as one of the hardest markets to get into in the first place and they are very proud of their coffee culture. The flat whites, coffee art in ceramic lattes have been served for dozens of years at beloved local cafes and by baristas who knew what they are doing.

What Starbucks was doing in the United States was introducing the coffee culture in the new market because it was non-existent before. But in Australia, this model didn’t fit in at all.

In 2008, Starbucks closed two-thirds of all the stores. The prices of Starbucks’ relatively common-tasting coffee (compared to established coffee shops) were pricier than the local solutions and managed by young students who didn’t have the level of appreciation of either the coffee culture and/or Starbucks as a brand.

Key takeaway #9 — establish yourself

Follow the winning formula of developing the markets first and turning into a product innovator after you have established yourself. Forcing the innovation where it’s not perceived as such, is waging a losing battle.

Starbucks on Social Media

The website is simply designed with an intention to present the latest seasonal product in the Starbucks shops in the first fold. The focus of the homepage is also on advertising the Starbucks Rewards program.

According to SimilarWeb, it attracts 18.9M visits per month, with an average of 2 minutes and 3.2 page views per session. Starbucks site is the 9th top ranked site for Food and Drink category in the world

The Youtube channel was established at the end of 2005. After 16 years it managed to acquire 335,000 subscribers, which isn't’ that much if we take the size of the company into consideration.

The most successful videos are close to 10 million views; however, they are short, 15-seconds clips of the product. The channel moderators are not participating in the comment sections.

Luckily there’s not much competition on YouTube; however, as a highly visual channel, Starbucks could advertise their mobile app and Starbucks reward program using socially-conscious values, product innovation, or sustainability programs.

On the other hand, Instagram is doing absolutely amazing. Naturally, since the best Starbucks customers are the ones who have been using their mobile devices for ordering and participating in the Starbucks Rewards program

Starbucks Instagram uses a mix of images and video clips mostly displaying their well-designed cups. The posts are mostly re-shared (“regrams”) of other Instagram users. With this tactic, Starbucks incentivizes UGC (user-generated content), since Instagram users have the chance to be regrammed and have their Starbucks shot seen by 17.8 million followers.

Pinterest is another great visual platform where images are split into different categories: from coffee recipes, coffee photography to store designs and world-recognized Starbucks cups.

Pinterest receives 10+ million monthly views and has 443,600 followers.

Even though their daily support is dropping, Facebook is still being used as one of the channels where Starbucks shows its videos and posts.

On Twitter , Starbucks shares its globally conscious ideas, news, and stories about the company and its products. Twitter also serves as a chance to (as in Instagram) retweet other users’ posts.

Starbucks likes to reshare the positive messages of happy users who had a positive experience at one of their stores

Since Starbucks' success mainly lies in their visual branding, they use social media for their brand awareness and in a Facebook sense, pushing the mobile app downloads.

Key takeaway #10 — delegate your resources

When using social media, identify which social media platform brings the best results. If your users are primarily on mobile devices, Instagram would be a smart choice. Delegate your resources to the best-performing channel.

Starbucks Corp. has become a worldwide success by sticking to its hedgehog concept. The realization of being customer-centric in the practical, not just theoretical sense laid the foundation of expansion in North American markets as well as international ones.

When all of the decisions are catered to the concept of serving their customers, including using technology as accelerators, there’s nothing to worry about in their future.

Starbucks Suit Results In Logo, Name Change For Local Chain

Contributor

In Starbucks Corporation v. Sardarbuksh Coffee & Co. & Ors. , CS (COMM) 1007/2018, on August 1, 2018, the High Court of Delhi granted interim relief in favor of Starbucks, directing the defendants to use the name "Sardarji-Bakhsh" for their 20 new, upcoming outlets until the final hearing of the suit on September 27, 2018. Following the hearing, it was agreed that the defendant would change the name of all of its outlets to "Sardarji-Bakhsh Coffee & Co."

The plaintiff registered the word mark STARBUCKS and the logo depicting a "crowned maiden with long hair" in India in 2001. The defendants commenced their business in 2015 naming their venture "Sardarbuksh Coffee & Co"—"Sardar" the Hindi word meaning "Commander" and "Buksh" the Hindi word meaning "Pardon." In May, 2018, the defendants incorporated a private limited company with the name "Sardar Buksh Private Limited" and have been carrying on operations under that name since that date. The goods and services provided by both the plaintiff and the defendants are identical. The defendants used a logo consisting of a circular black band with the words "SARDARBUKSH COFFEE & CO." and a device of a turbaned Commander with wavy lines extending from the sides in addition to reversing the use of the color scheme as compared to the Starbucks logo.

After receiving a letter of demand from Starbucks Corporation in 2017, the defendants modified their logo and changed their color scheme to black and yellow and commenced trading under the new logo shown below.

Nevertheless, Starbucks Corporation filed a case against the defendants for using the trade name "Sardarbuksh." On August 1, 2018, the High Court of Delhi ordered the defendants to modify their store name from "Sardarbuksh Coffee & Co." to "Sardarji-Bakhsh Coffee & Co." for 20 stores that have not yet opened; however, the court permitted the use of the existing name "Sardarbakhsh Coffee & Co." for their two operating stores.

On September 27, 2018, the parties exchanged terms and conditions, and they were put on record with the High Court of Delhi. Further, it was agreed that the defendant would change the name of all its outlets to "Sardarji-Bakhsh Coffee & Co." Additionally, it was clarified and agreed upon that, if a third party uses the term "Bakhsh," the defendant will have a right to file a suit against such a violator. The suit was finalized on the said terms.

Originally published by INTA Bulletins Law and Practice—Asia-Pacific Subcommittee .

Verifier: Sushant Singh, Advocate, Supreme Court of India and Delhi High Court, New Delhi, Delhi, India

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Starbucks Case Study - How Starbucks Conquered The Coffee Industry?

Devashish Shrivastava

Starbucks Corporation is an American coffee chain that was established in 1971 in Seattle, Washington. By mid-2019, the organization had a presence in over 30,000 areas around the world. Starbucks has been depicted as the fundamental delegate of "second wave espresso," a reflectively-named development that advanced high-quality espresso and specially simmered coffee. Starbucks now uses robotized coffee machines for proficiency and well-being.

Starbucks serves hot and cold beverages, entire bean espresso, micro-ground moment espresso known as VIA, coffee, caffe latte, full-and free leaf teas such as Teavana tea products, Evolution Fresh squeezes, Frappuccino refreshments, La Boulange baked goods, and bites (for example, chips and wafers); some offerings such as the Pumpkin Spice Latte are explicit to the territory of the store. Numerous Starbucks outlets sell pre-bundled nourishment items, sweltering and cold sandwiches, and drinkware such as cups and tumblers. Furthermore, there are Select "Starbucks Evenings" areas that offer brew, wine, and appetizers.

Starbucks first ended up productive in Seattle in the mid-1980s. Despite an underlying financial downturn with its venture into the Midwest and British Columbia in the late 1980s, the organization experienced rejuvenated success with its entrance into California in the mid-1990s. Starbucks opened an average of two new stores every day between 1987 and 2007. On December 1, 2016, Howard Schultz reported he would leave his position as the CEO and would be supplanted by Kevin Johnson. Johnson accepted the role of the CEO of Starbucks on April 3, 2017, and Howard Schultz resigned to end up as the 'Chairman Emeritus', effective from June 26, 2018. Kevin Johnson is currently serving as the CEO and President of Starbucks.

Starbucks - Company Highlights

Startup Story Of Starbucks Corporation History Of Starbucks Corporation Starbucks - Name and Logo Starbucks Expansion Journey Starbucks Corporation in India Business Strategy Of Starbucks In India Products Of Starbucks Corporation Business Growth Of Starbucks Corporation Over The Years Future Plans Of Starbucks Corporation

Startup Story Of Starbucks Corporation

If you are wondering how did Starbucks start? Then, the story of Starbucks started back in 1971, when the company was a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market.

Zev Siegel stated that at that time he knew the coffee industry inside and out, he was well-versed, especially with the gourmet end of the industry. Besides, he was also known as the most educated coffee guy in the country at that time. So, the three college friends - Zev Siegel, Jerry Baldwin and Gordon, started out with their coffee bean shop and roastery at Seattle’s famous Pike Place Market in 1971. Eventually, they found a mentor in Alfred Peet, who was the founder of Peet’s Coffee and the man responsible for bringing custom coffee roasting to the U.S. and started with the coffee business in full swing. Starbucks initially began by selling coffee beans that were roasted by Peet's, a gourmet coffee company in Berkeley, California, and later on, started roasting on their own.

History Of Starbucks Corporation

The first Starbucks store was initiated in 1971 in Washington by 3 individuals who met while they were studying at the University of San Francisco: English educator Hun Baldwin, history educator Zev Siegl, and author Gordon Bowker. The trio was encouraged to sell top-notch espresso beans and hardware after businessman Alfred Peet showed them his style of simmering beans.

During this time, the organization sold simmered, entire espresso beans. During its first year of activity, Starbucks bought green espresso beans from Peet's, and then started purchasing legitimately from producers.

Starbucks - Name and Logo

Bowker reviews that Terry Heckler, with whom Bowker claimed a publicizing office, thought words starting with "st" were ground-breaking. The organizers conceptualized a rundown of words starting with "st" and in the long run arrived on "Strabo," a mining town in the Cascade Range. The team then finalized on "Starbuck," the name of the young chief mate in the book "Moby-Dick".

Starbucks has given too many slogans/taglines already among which the most popular one is - " Brewed for those who love coffee".

Starbucks Expansion Journey

In 1984, the first proprietors of Starbucks, driven by Jerry Baldwin, acquired Peet's. During the 1980s, all-out offers of espresso in the US were falling. However, offers of strength espresso expanded, shaping 10% of the market in 1989; it stood at just 3% in terms of market share in 1983. By 1986, the organization worked six stores in Seattle and had just barely started to sell coffee.

In 1987, the first proprietors sold the Starbucks chain to the previous manager Howard Schultz, who rebranded his II Giornale espresso outlets as Starbucks and immediately extended. Starbucks then launched its outlets outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois. By 1989, 46 stores existed over the Northwest and Midwest, and every year Starbucks was simmering more than 2,000,000 pounds (907,185 kg) of coffee. At the hour of its first sale of stock (IPO) on the financial exchange in June 1992, Starbucks had 140 outlets with an income of $73.5 million, up from $1.3 million in 1987.

The organization's fairly estimated worth was $271 million at this point. The 12% segment of the organization that was sold raised around $25 million for the organization, which encouraged a multiplying of the number of stores throughout the following two years. By September 1992, Starbucks' offer cost had ascended by 70% to more than multiple times the income per portion of the past year. In July 2013, over 10% of in-store buys were made on the client's cell phones utilizing the Starbucks app.

The organization used the versatile social media stage when it propelled the "Tweet-a-Coffee" campaign in October 2013. People had the option to buy a $5 gift voucher for a companion by entering both "@tweetacoffee" and the companion's handle in a tweet. Research firm Keyhole observed the advancement of the event and a media article from December 2013 detailed that Starbucks had discovered that 27,000 individuals had taken an interest and $180,000 of buys were made to date.

As of 2018, Starbucks is positioned 132nd on the Fortune 500 rundown of the biggest United States organizations by revenue. In July 2019, Starbucks announced a "monetary second from last quarter total compensation of $1.37 billion, or $1.12 per share, up from $852.5 million, or 61 pennies for each offer, a year sooner." The organization's fairly estimated worth of $110.2 billion expanded by 41% in the middle of 2019. The income per share in quarter three was recorded at 78 pennies, considerably more than the estimate of 72 cents.

Starbucks Corporation in India

In January 2011, Starbucks Corporation and Tata Coffee reported designs to start opening Starbucks outlets in India. Despite a bogus beginning in 2007, in January 2012, Starbucks declared a 50:50 joint endeavour with Tata Global Beverages, called Tata Starbucks Ltd. , which would possess and work outlets marked "Starbucks, A Tata Alliance". Starbucks had endeavoured to enter the Indian market in 2007. However, it didn't provide any explanation behind its withdrawal of it.

It was on October 19, 2012 that Starbucks opened its first store, a 4,500 sq ft store in Elphinstone Building, Horniman Circle, Mumbai. Starbucks opened its first cooking and bundling plant in Coorg, Karnataka in 2013 to supply its Indian outlets. The company extended its reach to Delhi on 24 January 2013 by opening 2 outlets. Tata Global Beverages declared in 2013 that they would have 50 areas before the end of the year, with a venture of ₹4 billion ($58 million). The organization did open its 50th store in India on July 8, 2014.

The third city of India to get a Starbucks outlet was Pune, where the organization opened an outlet at Koregaon Park on 8 September 2013. Starbucks opened a 3,000-square-foot lead store at Koramangala, Bangalore on 22 November 2013, making it the fourth city to have an outlet. Starbucks opened the biggest espresso-forward store in the nation at Vittal Mallya Road, Bangalore on 18 March 2019. The store is estimated at 3,000 sq ft and is Starbucks' 140th outlet in India.

Tata Starbucks opened 25 stores between 2017 and 2018, which went up to 30 during 2018-19. On 21 February 2019, CEO Navin Gurnaney reported that Tata Starbucks would use only compostable and recyclable bundling materials over the entirety of its stores from June 2020.

Starbucks reported its entrance in Gujarat on 7 August 2019. The organization opened five stores in Surat and Ahmedabad the following day. Starbucks' leader store in the state is situated at Prahlad Nagar, Ahmedabad, and offers more vegan alternatives than other Indian outlets. CEO Navin Gurnaney expressed that the organization would open more than 30 stores in the 2019-20 financial year, of which 11 have already been opened.

Business Strategy Of Starbucks In India

Starbucks' strategies for business in India seemed rock-solid but the brand wasn't completely immune still. In any case, the world's biggest bistro chain is building its position cautiously via a progression of well-picked steps. Numerous worldwide brands have entered India since the 1990s, being pulled in by its developing and optimistic customer base. Yet, not all have succeeded.

Starbucks isn't the primary contestant in India's composed espresso showcase; so it doesn't have any first-participant advantage. Cafe Coffee Day (CCD) is the market head while Barista Lavazza was the main espresso chain to open for business. Both are valued by the white-collar class. Costa Coffee, Coffee Bean and Tea Leaf (CBTL), and Gloria Jean are valued by the rich group in India.

India is customarily a tea-drinking nation, so espresso chains have concentrated on giving a feel where individuals can unwind and invest energy with one another. This setup implies higher capital expenses. It is different from the US, where the vast majority have a liking for espresso. The Indian buyer base has likewise advanced in the recent decade. What can worldwide brands like Starbucks do to augment their odds of achievement in India? Here are a few thoughts:

Picking a Local Partner

Worldwide brands face the difficult choice of either going solo or tying up with a nearby accomplice. Starbucks' choice to team up with India's TATA Global Beverages demonstrates attention to utilizing different advantages. The TATA Group is one of India's morally determined brands, an observation passed on about Starbucks India too.

Given that India produces espresso beans in just a couple of spots, the other sourcing alternative was bringing in the beans. Be that as it may, this would have raised costs fundamentally.

Tata's espresso plant in Karnataka has been contracted to supply beans to Starbucks' universally, making common cooperative energies. It has contracted to take into account TATA's TAJ SATS, which supplies to TATA's top-notch lodging network – The TAJ. The TATAs are put into the retail part with store brands like Westside, Tanishq, Croma, Star Bazaar, and so forth. Starbucks can use them for information sharing on Indian land, territory points of interest, and handling land administrations. This would enable its very own development to outline. This strategy gives scope for store-in-store deals.

Consistency in Store Arrangements

This keeps up the one-of-a-kind selling purpose of customer experience and allows to pick up economies of scale on CAPEX. Starbucks plans to have a similar store group crosswise over India. However, the size can change depending on financial matters. This is how it works all around. Starbucks wants to provide an agreeable 'café' experience. Having a similar organization gives clients the solace of accepting the equivalent 'Starbucks' vibe any place they go throughout the world.

Keeping the store designs steady means it needs to pick and open new areas stringently, to such an extent that the area can yield a throughput by the venture. Its methodology in-store arrangement is different from CCD, which has picked various configurations to tap the potential interest in any region. CCD has opened a couple of premium outlets dependent on the area's customer profile . It has additionally gone for non-store organizations like takeaway booths and candy machines. Be that as it may, Starbucks may expect that such non-store configurations may weaken its image esteem.

Estimating the Pace of Expansion

India is the place where an inability to screen primary concerns has tossed numerous organizations out of the rigging. So, a top-line just approach doesn't work here. Since Starbucks needs to pick new areas stringently by its equivalent configuration approach, it has decided on a deliberate pace of extension. It is concentrating on the budgetary feasibility of every outlet, as opposed to going for an aggressive development plan which may have brought about rehashed calls for capital.

This operational process is different from its system in the USA and China where it has fabricated scale by opening stores in pretty much every area – being the main port-of-call for espresso by basically being all over the place. CCD's methodology behind adaptable store organizations was to guarantee there is a CCD bistro at a simple reach. It is intriguing to check its normal store gainfulness given its scale.

Guaranteeing Top-Authority Backing and Responsibility

Top initiative responsibility from the two sides of the organization, Tata and Starbucks, has been plentifully clear. Starbucks took as much time as is needed to enter the market (6 years), recognizing that India was a mind-boggling market and required cautious passage arranging. The two sides have spoken finally about their dedication and shared their future plans to give their business a new direction toward growth.

Altering Contributions to Suit Indian Market and Client Needs

Being adjusted to Indian culture, tastes, and inclinations conveyed at a suitable "esteem" guarantees customer importance, construct, and continued utilization. Starbucks mirrors this comprehension – as observed through a blend of western staples, a wide scope of intriguing Indian tidbits similar to confined refreshments on the idea. Since its experience ( and item as well, however to a lesser degree) is its image guarantee, its test lies in conveying an all-around steady, yet locally significant brand experience.

The stores, or the "third spot" as Starbucks calls them, have been altered likewise. The stores don't pursue the worldwide layout and appear to have been planned with consideration, with neighbourhood contacts consolidated. Stores in various urban communities have been structured unexpectedly, mirroring the neighbourhood culture – for e.g., New Delhi's store has ropes and chat on the dividers and henna designs on the floor, though the Pune store has a rich showcase of collectables and copper.

There appears to be sufficient utilization of shading – something missing in the US. The stores have been intended to convey a particular, premium café experience, predictable, and in a state of harmony with the one conveyed over the rest of the world.

Making Inventive and Restricted Plan of Action

Starbucks appears to have made a confined plan of action, planned for conveying a universally reliable item and involvement with locally-focused costs. The Tata group conveys a major sourcing advantage (attributable to its quality over the generation chain, developing, broiling, and exchanging espresso), yet it has just gone past that to develop and support associations with nearby espresso cultivators – putting resources into structure economical cultivating rehearses. All of Starbucks' espresso is sourced locally, a first-ever for the organization.

Scaling up using Arrangements and Organizations

The Tata organization is the genuine overthrow in the Starbucks passage story. Having Tata as an accomplice is gigantically profitable, not due to the validity and strength it offers, or because it coordinates the scale and stature of Starbucks as an organization.

It offers numerous advantages catalyzing pretty much every market section achievement variable - for example, The Tata group has involvement in the retail business , a solid reputation in advancing new pursuits, gives a sourcing advantage through Tata espresso, offers access to high traffic areas using its lodgings and other retail outlets, guarantee excellent nourishment and refreshment supply through its F&B business and so forth.

Furthermore, the potential for an effective organization is amazingly high given Starbucks' and Tata's mutual qualities – the two of them have a solid social inner voice and are resolved to "give back" to the general public and network.

Influencing India for Worldwide Items

Not long after it finished its first year, Starbucks reported that it was serving top-quality Indian Arabica espresso as "Indian coffee" in different markets. Another world-class office for cooking and bundling has just been initiated in Coorg, Karnataka; the results of which are to be analyzed in India and abroad.

Overseeing Discernment and Guidelines

This viewpoint is tied in with structure, a solid positive observation and a picture for the business and brand crosswise over key outer partners and crowds – incorporating the administration, corporate accomplices, networks inside the eco-framework, and customers on the loose. Given what Starbucks has figured out how to accomplish in a year and a half since dispatch, it appears to be genuinely evident that its thought combined with the Tata advantage (critical reach and impact) has helped in developing solid connections and a positive picture with key outside partners and voting demographics.

Engage Nearby Association

Starbucks is by all accounts constructing a nation-explicit activity with nearby individuals in charge and overall unmistakable customer interface focuses, giving them the necessary position to coordinate and work. There is overwhelming interest in enlisting the perfect individuals and giving the essential preparation – to install and instil the organization's culture and administration models.

Along these lines, how has Starbucks fared against the McKinsey spread out variables for long-haul India achievement? Its accomplishments against the scorecard look noteworthy. With thorough vigorous passage arranging and brilliant and quick execution, the multi-month-old endeavour appears to have impressive force, making purchaser and network-driven ventures and focused on sustaining its centre business and brand. It appears to be very much set to "win" in India.

Whether Starbucks will collect a huge piece of the overall industry and accomplish its objective of India being among its best 5 markets over the long haul is not yet clear. It's still early days, yet for the organization, this appears to be an incredible beginning and a great globalization model for multinationals looking for an India section.

Products Of Starbucks Corporation

Aside from the typical items offered globally, Starbucks in India has some Indian-style item contributions, for example, Tandoori Paneer Roll, Chocolate Rossomalai Mousse, Malai Chom Tiramisu, Elaichi Mewa Croissant, Chicken Kathi Roll, and Murg Tikka Panini to suit Indian customers. All coffees sold in Indian outlets are produced using Indian broiled espressos by Tata Coffee. Starbucks additionally sells Himalayan packaged mineral water. Free Wi-Fi is accessible at all Starbucks stores.

In January 2017, Tata Starbucks presented Starbucks' tea image "Teavana". Teavana offers 18 unique assortments of tea in India. One of the assortments called the India Spice Majesty Blend was explicitly created for the Indian market and is just accessible in India. India Spice Majesty Blend is a mix of full leaf Assam dark tea injected with entire cinnamon, cardamom, cloves, pepper, star anise, and ginger. On 15 June 2015, Tata Starbucks reported that it was suspending the utilization of fixings that had not been affirmed by the Food Safety and Standards Authority of India (FSSAI).

The organization didn't indicate what the fixings were or which items they were utilized in. The organization additionally expressed that it was applying for FSSAI endorsement for these ingredients.

As per the Latte Index positioning of the expense of a tall hot latte at Starbucks in 44 nations, India was the fifth most costly nation to buy the drink dependent on January 2016 costs. The record distributed by US-based buyer research firm ValuePenguin found that a tall hot latte cost $7.99 in India, far higher than the $2.75 it costs in the least expensive nation, the United States, yet much lower than the $12.32 in the most costly nation, Russia .

Tata Starbucks propelled the Starbucks Delivers program in mid-2019. The administration offers home conveyance from Starbucks outlets through an organization with Swiggy. The administration was first propelled in Mumbai, with designs to turn it out to other cities.

In its menu, the Tata Starbucks company has launched ice-creams as their new products. The frozen delights are available even in flavours like java chip and caramel macchiato among others and will come in takeaway tubs and single scoops. The ice-creams are now available in 50-60% of the Starbucks stores.

Business Growth Of Starbucks Corporation Over The Years

Tata Starbucks, a 50:50 joint endeavour between Tata Global Beverages and Starbucks Coffee of the US, has announced a 30%  top-line development in financial 2018-19, driven by new store openings and improved execution. Tata Starbucks, which is hoping to make back the initial investment in the current money, has opened 146 stores to date. Tata Starbucks announced "twofold digit top-line development - 30% for the entire year, driven by new stores and improved store execution," Tata Global Beverages Ltd (TGBL) said in a financial specialists' introduction. Tata Starbuck's income for 2018-19 is required to be approximately INR 450 crores.

TGBL said Tata Starbucks opened 30 outlets in the past financial year, out of which 15 new stores were opened during the last quarter of the money-related year. The organization claimed detailed benefits at the store level; all urban areas were likewise productive, and additionally saw an ascend in nourishment share in general deals.

The Starbucks company has added around 40 stores in FY21 but the company had recorded a 33% Y-O-Y  fall in its revenues during the same fiscal. According to the Sushant Dash, CEO of Tata Starbucks, the recovery that the company has seen after the second wave of COVID-19 was better than what it saw after the first wave of the deadly pandemic. The quarterly growth after Q2 FY22 was 120% more than what it saw during the same period in the previous fiscal. The company has hugely focused on home deliveries ever since the pandemic broke out. It has already addressed concerns associated with the spillage and other challenges pertaining to home delivery, which contributed to over 18% of the total sales that the company witnessed this fiscal, as per the reports in November 2021. Furthermore, the company has also added ice-creams to their menu in flavours like java chip and caramel macchiato. The Sanjeev Kapoor menu is another thing that has been freshly launched by Tata Starbucks. Besides, the company also launched a one-litre freshly brewed beverage and at-home coffee.  

Future Plans Of Starbucks Corporation

Tata Starbucks Pvt. Ltd. is looking to forcefully grow its impression in the Indian market with its eyes on the quickly spreading "espresso culture" among the twenty to thirty-year-olds and upwardly versatile customers. Tata Starbucks, a JV between US-based Starbucks Coffee Company and Tata Global Beverages Ltd, hopes to set up altogether more number stores this monetary than it did previously.

Starbucks is hopeful about solid business development in India throughout the following year as it means to leave red in monetary numbers after 2020. "Our proceeded with development in topline and reasonable methodology towards extension will enable us to accomplish make back the initial investment by March 2020," Navin Gurnaney, CEO, Tata Starbucks disclosed to Business Line in the wake of declaring five new stores in Gujarat - three in Ahmedabad and two in Surat. Gurney likewise included, "First time in quite a while, we are opening five stores in any state in one go.

Gujarat is a significant market for us. In the wake of opening these five stores on Thursday, the all outnumber of hides away goes up to 157 in India." Starbucks entered India with its first store opened at Mumbai in 2012. Of the 157, the organization has opened all out 11 stores so far in this financial, as against complete 30 stores opened during 2018-19. It takes into account 270,000 clients each week in India. The organization had announced a turnover of INR 442 crores for the monetary 2018-19.

"Espresso business in India is developing significantly. The espresso culture is being initiated by recent college grads, upwardly versatile, and individuals who travel and get brand. Two years back, we set up 25 stores (in a year). During the last financial 2018-19, we included 30 stores.

This year we will beat that number considerably and by end of March 2020, we will have included a lot a greater number of stores than we included in the past," Gurney said. With per store venture prerequisites being evaluated at INR 1.7-2 crores, the complete CAPEX plan by the organization works out in overabundance of INR 50 crores during current monetary on the off chance that it opens more number of stores than a year ago. Be that as it may, Gurnaney ceased from giving venture figures for 2019-20.

The organization is likewise open to different open doors for development including inorganic development through acquisitions. Be that as it may, when tested about any probability of a venture plan in the espresso chain Cafe Coffe Day (CCD), Gurnaney denied estimating any discussions for securing. "We are very hopeful about India. We will be attentively forceful (to extend). (At present) we are not in discussions with anyone for obtaining.

In any case, we are hoping to develop constantly," he included. With an end goal to upgrade the client experience, Starbucks is presenting new nourishment things, taking into account all client needs including breakfast and lunch. The income share from nourishment things is right now around 25%, even as it keeps on developing with new things to meet the client's needs.

Who founded Starbucks?

Starbucks was started by Hun Baldwin, Zev Siegl, and Gordon Bowker in 1971.

Where was the first Starbucks started?

Starbucks was started in Pike Place Market, Seattle, Washington, United States.

When was Starbucks started in India?

Starbucks was launched in India in 2012.

What is the revenue of Starbucks?

Starbucks revenue was recorded $29.02 billion in 2021.

How many Starbucks stores are there worldwide?

There are 33,830 Starbucks stores in the world as of 2021.

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Singapore Airlines death: Is climate change making air turbulence worse?

Experts say climate change is expected to make incidents of turbulence worse for air travellers.

Geoff Kitchen was on his way to a six-week holiday across South Asia and Australia with his wife Linda. Ten hours into the flight and in the middle of the breakfast service, Singapore Airlines flight SQ321 from London to Singapore plunged 6,000 feet (1,800 metres) in minutes.

The Boeing 777-300ER carrying 211 passengers and 18 crew members made an emergency landing in Bangkok. Kitchen went into cardiac arrest and ultimately died. At least 71 others were injured and 20 people are still in intensive care units in Bangkok.

Keep reading

Singapore airlines changes seatbelt rules, route after fatal turbulence, twenty people from singapore airlines flight in intensive care: hospital, shaken passengers from deadly turbulence-hit flight arrive in singapore, one dead as singapore airlines flight from london hit by severe turbulence.

But how often do such injuries and deaths happen, what is air turbulence, is it getting worse – and does climate change have a role in all of this?

How often does air travel lead to injuries?

Compared with the millions of flights that take to the skies each year (40.1 million forecast for 2024), what happened on SQ321 is rare.

In the United States, the world’s largest air travel market, there have only been 163 injuries between 2009 and 2022 that required hospitalisation, according to the Federal Aviation Administration.

The National Transportation Safety Board hasn’t reported a single turbulence-related death on a large-body aircraft in that period.

It’s also almost unheard of for turbulence to bring down an aircraft – let alone a commercial one. Although a plane did crash in 2001, it was because of a technical error and not directly related to turbulence.

That was American Airlines flight 587 from New York’s JFK to Santo Domingo, Dominican Republic. The NTSB confirmed that turbulence caused a failure in the aircraft’s vertical stabiliser.

What causes turbulence?

Turbulence is essentially a disturbance in the air and there are several different types and reasons why it occurs. Terrain like mountains can shift airflow and air is forced to rise over natural terrain that can cause waves of air that trigger turbulence.

While weather events can affect turbulence as well, the one that causes the most concern is called clear-air turbulence or CAT.

“It can be caused by what are called gravity waves that cause undulations in the air that you can’t see. The only way pilots know about it is to hear about it from a previous pilot. Pilots often listen to what a person who took that same flight path a few minutes earlier say. That’s the best way to detect these turbulence events,” Ramalingam Saravanan, head of the department of atmospheric sciences at Texas A&M University, told Al Jazeera.

Have instances of turbulence risen – and is climate change responsible?

A study from the University of Reading in England published last year found that between 1979 and 2020, clear-air turbulence rose by 55 percent over the North Atlantic, one of the world’s busiest flight routes. Warmer temperatures can affect wind patterns. The report asserts that greenhouse gas emissions are largely to blame.

That’s echoed by researchers at the University of Chicago who forecast that warming temperatures could lead to higher wind speeds in the “fastest upper-level jet stream”.

The study suggests that speeds will increase by 2 percent for every degree Celsius the world warms, which is expected to increase by 4 degrees Celsius by the end of the century if greenhouse gases continue to rise at the same level.

The global temperature has increased by at least 1.1 degrees Celsius since the pre-industrial era. Over that period, the biggest surge has been since 1975, according to NASA.

The University of Chicago researchers say that because of the expected record-breaking wind speeds, airlines will need to slow down speeds to limit the safety impacts of turbulence.

Turbulence is expected to increase most drastically in the North Atlantic – the key route between North America and Europe, but there is also a massive surge expected in southeast China, the western Pacific, and northern India.  A 2021 study by Nanjing University in China forecast a 15 percent increase in instances of CAT by 2059.

The surge in the Asia Pacific region is an increasing concern for the airline industry. China is expected to overtake the United States as the most passenger by volume air travel market by 2037.

Who is worst hit when planes suffer from turbulence?

The problems with turbulence are more about the safety of the people on board than the plane itself and happens mostly when customers and flight crew are not properly buckled in.

Flight crew accounts for 79 percent of all turbulence-related injuries.

“Turbulence is a serious workplace safety issue for Flight Attendants,” Sara Nelson, president of the Association of Flight Attendants-CWA, AFL–CIO said in a statement.

“While details of Singapore Flight 321 are still developing, initial reports seem to indicate clear-air turbulence, which is the most dangerous type of turbulence. It cannot be seen and is virtually undetectable with current technology. One second, you’re cruising smoothly; the next, passengers, crew and unsecured carts or other items are being thrown around the cabin,” Nelson added.

Does air turbulence hurt airline profits?

Despite how rare turbulence-related disasters are, turbulence costs the airline industry up to $500m annually. That accounts for damage to the plane and its cabins, delays and the occasional liability payment. With it being more common in the years to come, costs will add up.

Under the 1999 Montreal Convention, airlines were also to be held financially responsible for injuries incurred on board by turbulence including for damage to luggage as well as personal injury and even death.

“The convention sets forth the jurisdictions where the respective plaintiffs can bring their case, and that’s going to vary based on analysis of each of the passengers’ factual situation. They’re entitled to full compensatory economic damages,” Ladd Sanger, managing partner of Slack Davis Sanger, a Texas-based personal injury law firm with extensive experience in aviation accidents, told Al Jazeera.

Airlines are required to comply and pay affected consumers with what are called special drawing rights or SDRs. That’s a reserve asset established by the International Monetary Fund and depending on the nationality of those injured, it can be exchanged for their respective currency.

Thanks to the Montreal Convention, airlines are required to pay out the asset unless they can prove that an injury was a result of passenger negligence. The specific policy can vary slightly depending on what carrier passengers fly on.

Singapore Airlines says in its terms of service that:

“There are no financial limits for death or bodily injury. For damages up to 113,100 SDR [the equivalent of US$149,720.22 today], the carrier cannot contest claims for compensation. Above that amount, the carrier can defend itself against a claim by proving it was not negligent or otherwise at fault.”

Airlines often settle out of court on these matters, according to Sanger, who has helped dozens of clients in cases like these.

But these lawsuits put a strain on airlines because the industry has fairly tight margins, meaning every dollar matters. In December the International Air Transport Association (IATA), a trade organisation representing airlines across the world, touted what it expects to be record profits this year at 2.7 percent profit margins while still pointing out how tight that is.

“Industry profits must be put into proper perspective. While the recovery is impressive, a net profit margin of 2.7 percent is far below what investors in almost any other industry would accept,” said Willie Walsh, IATA’s director general, in a release in December 2023.

By comparison, the rail industry boasts a 50 percent profit margin.

“On average airlines will retain just $5.45 for every passenger carried. That’s about enough to buy a basic ‘grande latte’ at a London Starbucks. But it is far too little to build a future that is resilient to shocks for a critical global industry,” Walsh added.

Airlines are subject to major fluctuations in jet fuel prices which can sometimes make up as much as 25 percent of the industry’s expenditure. Airlines also must consider what’s called “load factor” when determining profitability. That’s essentially the formula that shows how full a flight has to be, and what prices and how expensive tickets need to be in order to make money.

In 2020,  Forbes reported that to break even, airlines need to have a load factor in the range between 72.5 percent and 78.9 percent. As of January 2024, the average load factor is 78.4 percent, according to the St Louis Federal Reserve Bank.

What does the Singapore Airlines incident mean for Boeing?

But the atmospheric turbulence comes alongside a turbulent time for the airline industry and especially one of the two main aeroplane manufacturers, Boeing.

A slew of high-profile incidents involving Boeing aircraft, and consumers’ gut reaction to the news, seems to attribute blame to the plane maker rather than any other factor. Many users on X say they’re opting not to fly on Boeing- made aircraft when they travel.

At this point, if the flight is Boeing I’m not booking https://t.co/D8AJ4ZY5r1 — Ezechiel. (@ezyarts1) May 21, 2024

“It doesn’t really matter if the aircraft manufacturer or the airline company had anything to do with the incident. When it comes to brands … the consumer perception is what matters most. And the perception right now is that Boeing makes unsafe planes,” said Andrew Graham, founder and head of strategy at the public relations firm Bread & Law in New York City.

In January a panel blew out mid-flight on an Alaska Airlines 737-MAX9 flight between Portland, Oregon and Ontario, California. In response, the airline grounded all 65 Boeing Max 9 jets in its fleet. In March, a United Airlines flight between Denver and Paris had to be diverted after an engine failure. In April, a Delta Airlines Boeing 767 bound for Los Angeles from New York’s JFK had to make an emergency landing shortly after takeoff because an emergency slide came apart.

Against that backdrop, only 9 percent of consumers trust Boeing, according to a Morning Consult poll from March. Now booking platforms like Kayak have added features that allow consumers to search for flights by aircraft manufacturer.

As Boeing’s safety record came into question, multiple whistleblowers were found dead.

Despite image issues, when it comes to Wall Street, most major firms still have not downgraded the stock. That suggests that Wall Street is not worried about the cornucopia of issues facing Boeing in the eyes of general consumers.

“I think a lot of the bad news is priced in … And if they start positively surprising on, you know, quality improvements in production, you could start to see that go the other way ” Bert Subin, senior research analyst at Stifel Financial Corp, told Al Jazeera.