A Short History of Starbucks and the Controversy They've Generated

By The Unemployed Writer, published Mar 17, 2007
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Starbucks is a story of ingenuity, great timing, and like any great business story, eventually of ruthless business tactics. The result is a company with a long and twisted history of great success and universal derision from those that find their success unacceptable. But, what exactly has Starbucks done in its relatively short corporate history to get itself to the place it currently inhabits, that of a company on the edge of worldwide control of a vast market.

The first Starbucks was opened in Seattle, Washington in 1971 by three partners-English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The original Starbucks location was at 2000 Western Avenue from 1971 to 1976. That store then moved to 1912 Pike Place.

Current Starbucks bigwig, Howard Schulz joined the company in 1982 and was soon afterward looking beyond existing markets to the idea of selling espresso and drinks in store, something he witnessed on a trip to Milan. The original owners were not interested in his proposal though, so in 1985 he started Il Giornale and started selling espresso in store. In 1987, Schulz bought Starbucks and rebranded all of his existing stores as Starbucks.

And by 1992, when the company hit the stock exchange, there were more than 150 outlets in the United States. The real growth and expansion took place in the late 90s though when Starbucks began purchasing companies like Seattle Coffee Company in the UK and expanding their operations outside of the US. After the purchase of Seattle's Best Coffee was completed in 2003, the total number of Starbucks stores in the world was over 6,000.

Currently, the business goal of Starbucks and at the rate of their expansion, projects them to expand from their current 12,000+ store fronts to nearly 20,000. Howard Schulz has always liked to describe his company as a "small business" model, a place where people can go to relax outside of home and work. The model reflects in the build of the stores, with comfortable seating, and ample space to sit and read or work on school work.

A Short History of Starbucks and the Controversy They've Generated

The First Starbucks in downtown Seattle.

Credit: citycomforts.com

Copyright: citycomforts.com

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Very interesting article. Thanks.

Posted on 03/22/2007 at 3:03:00 AM

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