The Starbucks was started with the three coffee fanatics with Gerald Balwin, Gordon Bowker and Ziev Siegl in 1971. They open a small coffee shop in Seattle’s Pike Place Market. The shop was specialized in selling whole Arabica beans to a niche market of coffee purist.
Howard Schultz joined the company in 1982, and, after a trip to Milan, advised that the company sell coffee and espresso drinks as well as beans. The owners rejected this idea, believing that getting into the beverage business would distract the company from its primary focus. A few years later, the three founders decided to sell the company to Schultz. This event led to his opportunity to experiment on Starbucks. As soon as his took over, he began opening new outlets around the country. The stores sold whole beans and premium-priced coffee beverages by the cup and served to affluent, well-educated, white-collar patrons. The main idea of creating a chain of coffeehouse is that it would become the America’s “third place” since American had two places in their live—home and work.
As soon as his took over, he began opening new outlets around the country. By 1992 the company had 140 store outlets around the Northwest and Chicago. The stores sold whole beans and premium-priced coffee beverages by the cup and served to affluent, well-educated, white-collar patrons. The same year, Schultz decided to make the company public. He was criticized by some people in that decision but despite of the criticism, he pursued raising $25 million in the process. This enabled Starbucks open more stores.
By the mid-2002, Starbucks has been established as a dominant specialty-store brand in North America. Sales were higher more than ever and now the small coffee shop is serving more than 20 million unique customers in well over 5000 stores around the globe and was opening on average three new stores a day. Today Starbucks Corporation is the leading roaster, retailer, and marketer of specialty coffee in the world, without spending almost nothing on advertising.
In 1992, Schults remained as chairman and chief global strategist in control of the company, handing over day-to-day operation to CEO Orin Smith, joined the company in 1990.
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