The history of Starbucks started from Seattle in year 1971. Three people were friends, Jerry Baldwin, Gordon Bowkerl and Zev Siegl , who all have a passion for coffee, opened a small shop and started selling coffee beans that have been roasted, ground coffee and roasting equipment. The company is running as well, but things changeg in the late 80s.
First of all, Zev Siegl sold out its shares in 1980. At that time, Starbucks is the largest coffee roasting company in Washington with 6 retail outlets. In year 1981 a salesman in a plastic gear to observe the many plastic flasks purchased by Starbucks from Hammarplast, the company where he worked. His name is Howard Schultz at who will do what Ray Kroc did at McDonald's in Starbucks, a salesman who is able to see a great product with a big opportunity.
Howard Schultz
In year 1982 Baldwin hired Schultz, the new head of marketing and shortly then sent him to Milan to attend the international furniture exhibition in Italy. When it arrived, Schultz fell in love at coffee culture shock in Italy. Schultz went to Verona and sipping his first caffe latte. He also noticed something that more important than the coffee, that the patron of the cafe is a place to chat or enjoy solitude while sipping coffee in a comfortable environment. It was a moment of where the inspiration came suddenly.
Big Idea
Schultz described that moment as a time where great ideas come up, "Why not create gathering communities’ places in the United States like coffee shops in Italy?" Can the Old World meet the New World? If it can be achieved, it would be a way of marketing genius.
In 1983 the marketing manager has a vision for creating back a magic and romance behind the shop of Italian coffee, and want to test the selling espresso concept outside of Italy.
Relax! We Only Sell the Coffee Bean
Nevertheless, the idea of Schultz does not run well with Baldwin. Baldwin was not prepared to enter the restaurant business; there is no one thing that diverts attention from his initial plan to sell whole bean coffee. But he let Schultz tried to open a small espresso shop in one corner of his shop.
Il Giornale and Starbucks take a different path
When the Starbucks Coffee opened its 6th store in downtown of Seattle, the coffee shop became a hit. It is a rapid achievement of success.
Schultz, in addition, developed his own business and opened a coffee shop that named based on the Italian newspaper greatest, Daily, or Il Giornale. 2 months later, a new store was serving more than 700 customers in one day, and sales exceed 300 percent of Starbucks locations.
Sell Out: This Is My firm now
In year 1987 the owners of Starbucks Coffee Company decided to sell the coffee business, along with the brand (name), to a local investors group with the price was $ 37 million. Schultz to raise funds to reassure investors that the vision that they could open one hundred and twenty five outlets in the next 5 years. He also changed the logo of Il Giornale, the picture topless mermaid, becomes a figure that is more acceptable in general. The name of the company was also changed from Il Giornale to Starbucks, and he finally converted the 6 roasting stores into Starbucks coffee shops which were neat and comfortable.
The Era of Growth
The history of Starbucks Coffee is just starting its shape. With the first start of the seventeen stores in year 1987, the company expanded rapidly to other cities: Chicago, Portland, and Vancouver.
In year 1991 Starbucks also expanded their business through mail-order catalogs and obtain a license to open a store at the airport and expand further into the state of California.
In year 1992 the company entered the market, and after the offering of initial public , the Starbucks company continued to growth with a phenomenal pace which is no one ever saw it in the coffee world before. In 1997 the Starbucks Coffee outlets had grown tenfold in the United States, Singapore, and Japan.
Other Businesses Extensions
Not quite enough just as a coffee shop, Starbucks started some expansion of other products and brands.
- Offering Starbucks coffee on the United Airlines flight.
- Sells premium teas through Tazo Tea Company that is owned by the Starbucks.
- Utilizing the Internet for direct bidding as an option to buy Starbucks coffee online.
- Distribute whole bean and ground coffee through supermarkets.
- Producing the premium coffee ice cream with Dreyer's.
- Selling CDs in almost all Starbucks retail stores.
The success of Starbucks achieved largely through the word of mouth advertising. with this kind of advertising, made the name became popular on the word. In fiscal year of 2004, Starbucks reached a record 1.344 stores worldwide.
The Starbucks coffee history shows how a regional small-scale of coffee roasting shop that selling coffee beans, becoming an international company with more than nine thousands locations in thirty four countries that serving more than twenty million customers in a week.
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