Starbucks Coffee Company

A coffee giant

What makes it tick? I stared at the famous logo at an outlet in The Curve and ran to find out more.

My rare luxury at The Curve.

In 1971, a small store opened in The Pike Place Market store in Seattle. It was called Starbucks Coffee, Tea and Spice. The then director of retail operations and marketing, Howard Schultz, questioned himself: What would happen if you took the quality coffee bean tradition of Starbucks and merged it with the charm and romance of the European coffeehouse? He convinced the owners to try the concept and the Starbucks we know today was born. Then another big dream popped up, it was to open a store in Portland, Oregon. Today, there are more than 12,000 stores worldwide. The way the world view coffee has changed. In the past days, the general public will scoff at the idea of having people getting an much more expensive cup of coffee and sitting around the shop sipping the drink. It was labeled as the Yuppy Fad, for people with lots of money and nowhere else to go to spend it. Today, everyone wants to be able to do so.

This company is built based on 5 simple principles that will carry it foward for a long time to come.

1. Make It Your Own
What so special about coffee drinking? Especially this coffee. The minds pioneered the idea of turning drinking into a fashion with its own identity and style. Naming the products and styling them was a draw and it worked. The names of the products may not play a very big role now, but it certainly helped Starbucks build up from the beginning. But what is the real the main draw? It's people. Starbucks places courtesy and friendliness and the caring attitude above all. Customers feel welcomed and special everytime they walk into the store. They know that they will be treated well at all times and they love that. People are now looking for a place to feel good in and enjoy, and Starbucks works hard to achieve the 'third place' mentality in its customers. 'Third place' being the third place people go to other than home and work. The fact that there are 12,000 stores worldwide proves that Starbucks has already achieved that.

2. Everything Matters
Starbucks takes great detail in every little thing that makes up the store from the quality of the coffee beans, the way coffee is brewed, the duration of a drink's preparation, the design of the cups and cup holders, the setting and ambiance of the store, and even the napkins. Once, a barista was not paying attention to the timer for the milk steamer and went overtime. A customer actually noticed and alerted the store. Starbucks maintains that the slightest detail which is not up to par has the biggest possibility of losing a customer. Starbucks isn't afraid to pay a premium for the best coffee beans within their grasp. It is even more devastating if they compromise a little on the quality of the beans rather than paying a bit more. Their employees matter a whole lot to the Starbucks administration. They actually do not even call them employees, they are called partners. Starbucks makes sure that its partners are well treated and taken care of by giving them a whole lot of benefits such as "stock option grants through Bean Stock, Starbucks company-wide stock option plan, as well as health, medical, dental and vision benefits."

"In addition, all Starbucks partners have a chance to experience and learn more about our coffees and teas through their “partner markout.” Each week every partner receives, free of charge, one pound of coffee, one box of Tazo® tea, or one of several other coffee or tea products."

3. Surprise and Delight
Starbucks partners are trained to be the people around to assist at the oddest of times. There was a time when a customer asked for a mocha. It so happened that that particular outlet ran out of white chocolate. The barista asked if he could make another drink. That alternative drink turned out to be on the house as an apology that they could not comply to the customer's initial request. The customer said that the issue of the unavailable was very trivial, but the surprise free drink was stuck in her mind to this day. Another story is a lady locked her keys in her car that was parked just outside a Starbucks outlet. A barista saw the lady becoming very frustrated and went out with a cup of tea and a cordless phone. He calmed the lady down, asked her if she was alright and gave her the drink and the phone. You guessed it, she was not charged for anything. Little things like this to make the customer happy is worth it as it has guaranteed Starbucks loyal customers in return when news of these kind gestures circulates by word of mouth.

4. Embrace Resistance
Every food and beverage shop will tell you that they had had multiple failures of a few products that they introduced. Starbucks is not an exception. Many years ago they tried to introduce a chocolate drink that was something like really drinking chocolates. They gave out samples and it was not well received. That did not end their ambition to sell chocolate drinks. They came up with two new products and they were selling away after getting customer feedbacks. Starbucks also embraces a policy of giving positive and constructive refusals to suggestions by their partners. Instead of telling you a no straight in your face, the administration will try to suggest a different view of things or will keep suggestions in view. They would also call for meetings often and involve the partners. This encourages the strengthening of team spirit and the partners are never afraid to voice out their opinions, making Starbucks a great place to work in.

5. Leave Your Mark
Starbucks actively engages in the giving back to the people, their corporate social responsibility (CSR). It takes care of its relationship with the farmers of the coffee plantations seriously by employing economic transparency, thus ensuring the farmers' success in their plantations. Starbucks also takes note of the local needs and try to create economic benefits for the local area. Some local stores are concerned that a foreign business will force them out of the game and this has led to a number of oppositions against the opening of many Starbucks outlets. Even though Starbucks had to let go of these opportunities, they also had earned the trust and respect of other local communities. One such effort took place when Starbucks was refused in a small town. The administration approached a local artist and asked if he would like to exhibit his work in Starbucks. He agreed and soon enough, the locals accepted that Starbucks is a friendly business partner and it cares about the local art and economy as well. Another example is, in Manchester, England, Starbucks "purchased several items for their local stores from Benchmark Furniture Design, a local maker of wood furnishings with a social mission. Some of their stores in the U.S. are also adapted with a local flair. For instance, instead of building a new store in Chicago’s Beverly neighborhood, Starbucks refurbished an existing limestone building and preserved many of the original features, including a distinctive fireplace mantel which they designed to be a focal point of their new store."

Now we know why Starbucks is what it is today. It does much more than obsess with coffee. Any entrepreneur who wants to start a business should take some time to study Starbucks Coffee Company. It helps.

On a personal note, I used to not like the coffee at Starbucks because it did not have the punch I was looking for. But now, as I sipped a cup at The Curve, it tasted excellent. I wonder if they actually read my mind and improved on the taste. Hmmm...mmmm =)

The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary, Joseph A. Michelli, McGraw-Hill, 2006
www.starbucks.com