Starbucks

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Starbucks
Type Public (NASDAQSBUX)
Founded In 1971 across from Pike Place Market in Seattle, Washington
Founder(s) Zev Siegel, Jerry Baldwin and Gordon Bowker
Headquarters Seattle, Washington, USA
Key people Howard Schultz, Chairman, President and CEO
Martin Coles, President, Starbucks International
Troy Alstead, Chief Financial Officer
Stephen Gillett, Chief Information Officer
Industry Restaurants
Retail Coffee and Tea
Retail Beverages
Entertainment
Products Whole Bean Coffee
Boxed Tea
Made-to-order beverages
Bottled beverages
Baked Goods
Merchandise
Frappuccino beverages
Smoothies
Services Coffee
Revenue US$9.411 billion (2007)
Operating income US$1.053 billion (2007)
Net income US$672.64 million (2007)
Total assets US$5.343 billion (2007)
Total equity US$2.284 billion (2007)
Employees 172,000 (2008)[1]
Subsidiaries Starbucks Coffee Company
Tazo Tea Company
Seattle's Best Coffee
Torrefazione Italia
Hear Music
Ethos Water
Website Starbucks.com

Starbucks Corporation (NASDAQSBUX) is an international coffee and coffeehouse chain based in Seattle, Washington, USA. Starbucks is the largest coffeehouse company in the world,[2] with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan.[3] Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also sold at grocery stores.

From Starbucks' founding in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-90s, and overseas stores now constitute almost one third of Starbucks' stores.[4] The company plans to open a net of 900 new stores outside of the U.S. in 2009,[5] but has announced 900 store closures in the US since 2008.

Starbucks has been a frequent target of protests on issues such as fair-trade policies, labor relations, environmental impact, perceived anti-competitive practices, and completely unsubstantiated rumours of support for the Israeli military.

Contents

[edit] History

The first Starbucks branch

[edit] Founding

The Starbucks Center, Seattle. The company HQ, in the old Sears, Roebuck and Co. catalog distribution center building

The original Starbucks was opened in Pike Place Market in Seattle, Washington, in 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The three were inspired by Alfred Peet, whom they knew personally, to open their first store in Pike Place Market to sell high-quality coffee beans and equipment. The original Starbucks location was at 2000 Western Avenue, from 1971–1976. That store then moved to 1912 Pike Place; it is still open. During their first year of operation, they purchased green coffee beans from Peet's, then began buying directly from growers.

Entrepreneur Howard Schultz joined the company in 1982 as Director of Marketing, and after a trip to Milan, Italy advised that the company should 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. To them, coffee was something to be prepared in the home. Certain that there was money to be made selling pre-made drinks, Schultz started the Il Giornale coffee bar chain in 1985.

In 1984, the original owners of Starbucks, led by Baldwin, took the opportunity to purchase Peet's (Baldwin still works there).

[edit] Sale and expansion

In 1987, they sold the Starbucks chain to Schultz's Il Giornale, which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois, that same year. At the time of its initial public offering on the stock market in 1992, Starbucks had grown to 165 outlets.

International presence of Starbucks stores

[edit] International expansion

The first Starbucks location outside North America opened in Tokyo, Japan, in 1996. Starbucks entered the U.K. market in 1998 with the acquisition of the then 60-outlet, UK-based Seattle Coffee Company, re-branding all the stores as Starbucks. By November 2005, London had more outlets than Manhattan,[6] a sign of Starbucks becoming an international brand.

A Starbucks coffee shop in Leeds, United Kingdom

In April 2003, Starbucks completed the purchase of Seattle's Best Coffee and Torrefazione Italia from AFC Enterprises, bringing the total number of Starbucks-operated locations worldwide to more than 6,400. On September 14, 2006, rival Diedrich Coffee announced that it would sell most of its company-owned retail stores to Starbucks. This sale includes the company-owned locations of the Oregon-based Coffee People chain. Starbucks converted the Diedrich Coffee and Coffee People locations to Starbucks, although the Portland airport Coffee People locations were excluded from the sale.[7][8]

Many bookstores have Starbucks outlets within them, including Barnes & Noble in the US and Borders in the UK.

In 2008, Starbucks continued its expansion, settling in Argentina, Bulgaria and Portugal. In April 2009, Starbucks entered Poland. New stores will be opened in Algeria and Hungary.

[edit] Restaurant experiment

In 1999, Starbucks experimented with eateries in the San Francisco Bay area through a restaurant chain called Circadia.[9] These restaurants were soon "outed" as Starbucks establishments and converted to Starbucks cafes.

Howard Schulz, CEO of Starbucks

[edit] Corporate governance

Orin C. Smith was President and CEO of Starbucks from 2000 to 2005.

Starbucks' chairman, Howard Schultz, has talked about making sure growth does not dilute the company's culture [10] and the common goal of the company's leadership to act like a small company.

In January 2008, Chairman Howard Schultz resumed his roles as President and CEO after an eight year hiatus, replacing Jim Donald, who took the posts in 2005 but was asked to step down after sales slowed in 2007. Schultz aims to restore what he calls the "distinctive Starbucks experience" in the face of rapid expansion. Analysts believe that Schultz must determine how to contend with higher materials prices and enhanced competition from lower-price fast food chains, including McDonald's and Dunkin' Donuts. Starbucks discontinued its warm breakfast sandwich products, originally intended to launch nationwide in 2008, in order to refocus the brand on coffee. On February 23, Starbucks closed its stores from 5:30 p.m. to 9 p.m. local time to train its baristas.[11][12]

[edit] Recent changes

A typical sales area, this one in Peterborough, UK, showing a display of food and the beverage preparation area

In March 2008, Schultz made several announcements to Starbucks shareholders. Schultz introduced Starbucks' "state of the art espresso system",[13] the Thermoplan AG manufactured Mastrena, which replaced their previous superauto, the Thermoplan Verismo 801 (known internationally as the Thermoplan Black & White). Starbucks also announced that the company hopes to enter the energy drink market. Pre-ground beans will no longer be used, so that the grinding of whole bean coffee will "bring aroma, romance and theater" to American stores.[14] The company also announced the acquisition of The Coffee Equipment Company,[13] the manufacturer of the Clover Brewing System. They are currently test marketing this "fresh-pressed" coffee system at six Starbucks locations; three in Seattle, and three in Boston.[15]

Starbucks stopped using milk originating from rBGH-treated cows in 2007.[16]

In early 2008, Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers. Other users comment and vote on suggestions. A journalist noted that "My Starbucks seems to be all sweetness and light at the moment, which I don't think is possible without quite a lot of censorship". The website is powered by the Salesforce software.[17]

In May 2008, a loyalty program was introduced for registered users of the Starbucks Card (previously simply a gift card) offering perks such as free Wi-Fi Internet access and free refills.[18]

[edit] Store closures

On July 1, 2008, the company announced it was closing 600 under-performing company-owned stores and cutting U.S. expansion plans amid growing economic uncertainty.[19][20] On July 29, 2008, Starbucks also cut almost 1,000 non-retail jobs as part of its bid to re-energize the brand and boost its profit. Of the new cuts, 550 of the positions are layoffs and the rest are unfilled jobs.[21] These closings and layoffs have effectively ended the company’s period of growth and expansion that began in the mid-1990s.

Starbucks also announced in July of 2008 that it would close 61 of its 84 stores in Australia by August 3, 2008.[22] Nick Wailes, an expert in strategic management of the University of Sydney commented that "Starbucks failed to truly understand Australia’s cafe culture."[23]

On January 28, 2009, Starbucks announced the closure of an additional 300 under-performing stores, and the elimination of 7,000 positions. CEO Howard Schultz also announced that he had received board approval to reduce his salary.[24]

[edit] Intellectual property

Starbucks U.S. Brands, LLC, is a Starbucks-owned company that currently holds and owns the property rights to approximately 120 Starbucks Coffee Company patents and trademarks. It is located at 2525 Starbucks Way in Minden, Nevada.[25]

[edit] Name

The company is named in part after Starbuck, Captain Ahab's first mate in the book Moby-Dick, as well as a turn-of-the-century mining camp (Starbo or Storbo) on Mount Rainier. According to Howard Schultz's book Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time, the name of the company was derived from Moby-Dick, although not in as direct a fashion as many assume. Gordon Bowker liked the name "Pequod" (the ship in the novel), but his then creative partner Terry Heckler responded, "No one's going to drink a cup of Pee-quod!" Heckler suggested "Starbo". Brainstorming with these two ideas resulted in the company being named for the Pequod's first mate, Starbuck.[26]

[edit] International names

Starbucks at Ibn Battuta Mall, Dubai
A store in Seoul, South Korea. The sign is not written in English, which is uncommon.

Starbucks is known internationally by the following names:

  • Arabic-speaking countries: ستاربكس (transliteration: stārbaks)
  • Bulgaria: Старбъкс (transliteration: Starbâks)
  • China, Hong Kong, Macau, Taiwan: 星巴克 Pinyin: xīngbākè (星 xīng means "star", while 巴克 is a transliteration of "-bucks")
  • Israel: סטארבקס (transliteration: sṭārbaqs)
  • Japan: スターバックス (transliteration: sutābakkusu, phonological: staa-bahkss)
  • Russia: Старбакс (transliteration: Starbaks)
  • South Korea: 스타벅스 (transliteration: seutabeokseu), often used in conjunction with the English name
  • Quebec, Canada: Café Starbucks Coffee[27]
  • Thailand: สตาร์บัคส์ pronounced [satāːbākʰō]

[edit] Logo

Original brown logo

Valerie O'Neil, a Starbucks spokeswoman, said that the logo is an image of a "twin-tailed siren" (the siren of Greek mythology).[28] The logo has been significantly streamlined over the years. In the first version, which gave the impression of an authentic 15th century European woodcut, the Starbucks siren was topless and had a fully visible double fish tail. The image also had a rough visual texture. In the second version, which was used from 1987-92, her breasts were covered by her flowing hair, but her navel was still visible, and the fish tail was cropped slightly. In the current version, used since 1992, her navel and breasts are not visible at all, and only vestiges remain of the fish tails. The original "woodcut" logo can still be seen on the Starbucks store in Seattle's Pike Place Market, and on both the House Blend and Decaf House Blend packaging.

At the beginning of September 2006 and then again in early 2008, Starbucks temporarily reintroduced its original brown logo on paper hot drink cups. Starbucks has stated that this was done to show the company's heritage from the Pacific Northwest and to celebrate 35 years of business. The vintage logo sparked some controversy due in part to the siren's bare breasts,[29] but the temporary switch garnered little attention from the media. Starbucks had drawn similar criticism when they reintroduced the vintage logo in 2006.[30]


[edit] Parodies and infringements

In 2000, San Francisco cartoonist Kieron Dwyer was sued by Starbucks for copyright and trademark infringement after creating a parody of its siren logo and putting it on the cover of one of his comics; later placing it on coffee mugs, t-shirts, and stickers that he sold on his website and at comic book conventions. Dwyer felt that since his work was a parody it was protected by his right to free speech under U.S. law. The case was eventually settled out of court, as Dwyer claimed he did not have the financial ability to endure a trial case with Starbucks. The judge agreed that Dwyer's work was a parody and thus enjoyed constitutional protection; however, he was forbidden from financially "profiting" from using a "confusingly similar" image of the Starbucks siren logo. Dwyer is currently allowed to display the image as an expression of free speech, but he can no longer sell it.[31]

In 2003, Starbucks successfully sued a Shanghai competitor in China for trademark infringement, because that chain used a green-and-white logo with a similar sounding Chinese name.[32]

Also in 2003, Starbucks sent a cease-and-desist letter to "HaidaBucks Coffee House" in Masset, British Columbia, Canada. The store was owned by a group of young Haida men, commonly referred to as "bucks." After facing criticism, Starbucks dropped its demand after HaidaBucks dropped "coffee house" from its name.[33]

In 2005 Starbucks lost a trademark infringement case against a smaller coffee vendor in South Korea that operates coffee stations under the name and style Starpreya. The company, Elpreya, says Starpreya is named after the Norse goddess, Freja, with the letters of that name changed to ease pronunciation by Koreans. The court rejected the Seattle-based retailer's claim that the logo of Starpreya is too similar to the famous Starbucks logo.[34]

In 2008, Starbucks disputed the copyright application for Seattle’s Rat City Rollergirls logo after the paperwork was filed with the U.S. Patent and Trademark Office.[35] The corporation claimed the roller derby league’s logo, by Port Orchard, Washington artist Krysztof Nemeth,[36] was too similar to Starbucks’. Starbucks requested an extension to further examine the issue and possibly issue a complaint, which was granted by the Trademark Office. The July 16, 2008 deadline passed without action by the corporation.[37]

[edit] Corporate social responsibility

Starbucks releases an annual Corporate social responsibility report.[38]

Grounds for your Garden

[edit] Environmental impact

In 1999, Starbucks started "Grounds for your Garden" to make their business more environmentally-friendly. This gives leftover coffee grounds to anyone requesting it for composting. Although not all stores and regions participate, customers can request and lobby their local store to begin the practice.

In 2004, Starbucks began reducing the size of their paper napkins and store garbage bags, and lightening their solid waste production by 1.8 million pounds.[39]The U.S. Food and Drug Administration granted the first-ever approval to use recycled content in food packaging for Starbucks coffee cups. In 2005 Starbucks received the National Recycling Coalition Recycling Works Award.[40] In 2008, Starbucks was ranked #15 on the U.S. Environmental Protection Agency's list of Top 25 Green Power Partners for purchases of renewable energy.[41]

Starbucks has also received criticism from environmentalists. "Dr. Allen Hershkowitz, a senior scientist at the Natural Resources Defense Council, says that Starbucks claimed they were using only 10 percent recycled material partly because the recycled material costs more."[42] In October 2008, The UK newspaper The Sun reported that Starbucks was wasting 23.4 million litres of water a day by leaving a tap constantly running for rinsing utensils in a 'dipper well' in each of its stores.[43]

A Starbucks barista

[edit] Staff training

Tags displaying the title "Master" are worn by employees who have completed the Coffee Master course, which educates employees in coffee tasting, growing regions, roasting, and purchasing (including fair trade). Almost 70% of the coffee used by Starbucks around the world comes from the sixth major producer in the world, Guatemala, a pro-organic producer.

[edit] Product Red

Starbucks began selling Product Red goods in November 2008, enabling the supply of AIDS medicine for 3,800 people for a year.[44]

[edit] New Orleans

In 2008, Starbucks announced a volunteer program in New Orleans, three years after Hurricane Katrina. According to Rebuilding Together New Orleans, employees will work on various projects, including houses, planting trees and an urban garden. A volunteer coordinator said that "I've never seen this magnitude from one corporation before, I'll say that, in terms of the sheer numbers."[45]

[edit] Criticism and controversy

Starbucks at the Forbidden City in Beijing (closed since July 2007)

Several activist groups maintain websites criticizing the company's fair-trade policies, labor relations, and environmental impact, and hold it as a prime example of U.S. cultural and economic imperialism. Several Starbucks locations were vandalized during the WTO meeting held in Seattle in late 1999.

The Starbucks location in the former imperial palace in Beijing closed in July 2007. The coffee shop had been a source of ongoing controversy since its opening in 2000 with protesters objecting that the presence of the American chain in this location "was trampling on Chinese culture."[46][47][48][49]

Two Starbucks stores in one shopping center in Queens, New York

[edit] Anti-competitive tactics

Some of the methods Starbucks has used to expand and maintain their dominant market position, including buying out competitors' leases, intentionally operating at a loss, and clustering several locations in a small geographical area (i.e., saturating the market), have been labeled anti-competitive by critics.[50] For example, Starbucks fueled its initial expansion into the UK market with a buyout of Seattle Coffee Company, but then used its capital and influence to obtain prime locations, some of which operated at a financial loss. Critics claimed this was an unfair attempt to drive out small, independent competitors, who could not afford to pay inflated prices for premium real estate.[51] The policy of clustering stores was parodied in The Onion with the headline, "New Starbucks Opens In Rest Room Of Existing Starbucks".[52]

The Reverend Billy leading an anti-Starbucks protest in Austin, Texas in 2007

[edit] Labor disputes

According to Starbucks Chairman Howard Schulz, "If they had faith in me and my motives, they wouldn't need a union."[53]

Starbucks workers in seven stores have joined the Industrial Workers of the World (IWW) as the Starbucks Workers Union since 2004.[54]

According to a Starbucks Union press release, since then the union membership has begun expanding to Chicago and Maryland in addition to New York City, where the movement originated.[55] On March 7, 2006, the IWW and Starbucks agreed to a National Labor Relations Board settlement in which three Starbucks workers were granted almost US$2,000 in back wages and two fired employees were offered reinstatement.[56][57][58] According to the Starbucks Union, on November 24, 2006, IWW members picketed Starbucks locations in more than 50 cities around the world in countries including Australia, Canada, Germany, and the UK, as well as U.S. cities including New York, Chicago, Minneapolis and San Francisco,[59] to protest the firing of five Starbucks Workers Union organizers by Starbucks and to demand their reinstatement.

Some Starbucks baristas in Canada,[60] Australia and New Zealand,[61] and the United States[62] belong to a variety of unions.

In 2005, Starbucks paid out US$165,000 to eight employees at its Kent, Washington, roasting plant to settle charges that they had been retaliated against for being pro-union. At the time, the plant workers were represented by the IUOE. Starbucks admitted no wrongdoing in the settlement.[54]

A Starbucks strike occurred in Auckland, New Zealand, on November 23, 2005.[61] Organized by Unite Union, workers sought secure hours, a minimum wage of NZ$12 an hour, and the abolition of youth rates. The company settled with the Union in 2006, resulting in pay increases, increased security of hours, and an improvement in youth rates.[63]

In March 2008, Starbucks was ordered to pay baristas over US$100 million in back tips in a Californian class action lawsuit launched by baristas alleging that granting shift-supervisors a portion of tips violates state labor laws. The Company plans to appeal. Similarly, an 18 year-old barista in Chestnut Hill, MA has filed another suit with regards to the tipping policy. Massachusetts law also states that managers may not get a cut of tips. [64][65] A similar lawsuit was also filed in Minnesota on March 27, 2008. [66]

[edit] Coffee bean market

A Starbucks located in Lima, Peru
Starbucks coffee beans

In 2000, the company introduced a line of fair trade products.[67] Of the approximately 136,000 metric tons (300 million pounds) of coffee Starbucks purchased in 2006, about 6 percent was certified as fair trade.[68]

According to Starbucks, they purchased 2,180 metric tons (4.8 million pounds) of Certified Fair Trade coffee in fiscal year 2004 and 5,220 metric tons (11.5 million pounds) in 2005. They have become the largest buyer of Certified Fair Trade coffee in North America (10% of the global market). Transfair USA,[69] the only third-party certifier of Fair Trade Certified coffee in the United States, has noted the impact Starbucks has made in the area of Fair Trade and coffee farmer's lives:

Since launching {its} FTC coffee line in 2000, Starbucks has undeniably made a significant contribution to family farmers through their rapidly growing FTC coffee volume. By offering FTC coffee in thousands of stores, Starbucks has also given the FTC label greater visibility, helping to raise consumer awareness in the process.

Groups such as Global Exchange are calling for Starbucks to further increase its sales of fair trade coffees. Fair trade certification can cost US$2,500 to US$10,000, based on the size of the producer group and length of time the inspections take, and many growers are unwilling or unable to pay for certification.[70]

Beyond Fair Trade Certification, Starbucks argues that it pays above market prices for all of its coffee. According to the company, in 2004 it paid on average $1.42 per pound ($2.64kg) for high-quality coffee beans.[71] This is in comparison to commodity prices which were as low as $0.50–$0.60 in 2003–2004.[72]

A display of Ethos water

[edit] Ethos water controversy

Ethos, a brand of bottled water acquired by Starbucks in 2005, is sold at locations throughout North America. Ethos bottles feature prominent labeling stating "helping children get clean water", referring to the fact that $.05 from each $1.80 bottle sold ($.10 per bottle in Canada) is used to fund clean water projects in under-developed areas. Although sales of Ethos water have raised over $6,200,000 for clean water efforts, the brand is not a charity. Critics have argued that the claim on the label misleads consumers into thinking that Ethos is primarily a charitable organization, when it is actually a for-profit brand and the vast majority of the sale price (97.2%) does not support clean-water projects.[73][74] The founders of Ethos have stated that the brand is intended to raise awareness of third-world clean water issues and provide socially responsible consumers with an opportunity to support the cause by choosing Ethos over other brands.[75] Starbucks has since redesigned the American version of the Ethos water bottles, stating the amount of money donated per bottle in the description.

A bin overflowing with Starbucks cups

[edit] Recycling

Starbucks bought 2.5 billion cups for stores in North America in 2007. The 10% recycled paper cups used by Starbucks are not recyclable, because the plastic coating that prevents the cup from leaking also prevents it from being recycled. Starbucks is considering using biodegradable material instead of plastic to line the cups, and is testing composting of the existing cups. Many Starbucks stores do not have recycling bins; only 1/3 of company-owned stores recycled any materials in 2007.

Starbucks gives customers a 10-cent discount when they bring their own reusable cup, and it now uses corrugated cup sleeves made from 60 percent post-consumer recycled fiber.[76]

[edit] Brighton store opens in breach of planning regulations

In May 2008, a branch of Starbucks was completed in Kemptown on St. James's Street, Brighton, England, despite having being refused permission by the local planning authority, Brighton and Hove City Council. They claimed there were too many coffee shops already present on the street.[77][78] Starbucks has appealed the decision, with Brighton and Hove council monitoring the situation.[79]

Brighton & Hove City Council have served Starbucks with an enforcement notice (which they have appealed) to remove all tables and chairs from the premises in order to comply with planning regulations and operate as an A1 retail shop, rather than an A3 coffee shop/restaurant, for which they have no planning permission. The deadline of the enforcement is 20 February 2009.[80]

[edit] Alleged relationship with the Israeli military

There have been calls for boycott of Starbucks stores and products because it is alleged that Starbucks sends part of its profits to the Israeli military.[81] This allegation is apparently based on a spoof letter published on an anti-Zionist site. [82]

It has been long alleged that CEO Howard Schultz is "an active Zionist" [83] and is a recipient of several Israeli awards including "The Israel 50th Anniversary Tribute Award" for "playing a key role in promoting a close alliance between the United States and Israel."[84] In response to these allegations Starbucks issued a statement saying “Neither Chairman Howard Schultz nor Starbucks fund or support the Israeli Army. Starbucks is a non-political organization and does not support individual political causes.”[85]

Starbucks has been a regular target of activists protesting against the Israeli intervention in Gaza. Starbucks was forced to close a store in Beirut, Lebanon because of demonstrators shouting anti-Israel slogans and causing customers to flee.[86] Protesters in Beirut told the Associated Press that they targeted Starbucks because they claim Howard Schultz donates money to the Israeli military. They hung several banners on the shop's window and used white tape to paste a Star of David over the green-and-white Starbucks sign. They also distributed a letter saying Schultz "is one of the pillars of the American Jewish lobby and the owner of the Starbucks," which they said donates money to the Israeli military.[87] Starbucks responded by saying "Rumors that Starbucks Coffee Company and its management support Israel are unequivocally false. ... Starbucks is a nonpolitical organization and does not support political causes. Further, political preferences of a Starbucks partner [employee] at any level have absolutely no bearing on Starbucks company policies."[88]

A store on Piccadilly with its windows boarded up after being smashed by protesters

[edit] Violence against Starbucks in the United Kingdom

On January 12, 2009, a Starbucks in Whitechapel Road in London was the target of vandalism by pro-Palestinian demonstrators who broke windows and reportedly ripped out fittings and equipment after clashes with riot police. In the early hours of the following morning a suspected makeshift firebomb was hurled into the premises, causing further damage.[89][90][91]

On January 17, 2009, at a pro-Gaza protest held by the Stop the War Coalition in Trafalgar Square in central London, British Rapper Lowkey stated with regard to Starbucks that: "You say you know about the Zionist lobby but you put money in their pockets every time you’re buying their coffee." After the rally, two groups of people, many wearing scarves over their faces, smashed and looted two Starbucks on Piccadilly and Shaftesbury Avenue. Although the stores had requested greater police protection following the violence against a Starbucks the previous week, Scotland Yard stated it could "not stop thugs hell-bent on causing damage."[92][90][93][94]

[edit] Accusations by Sheikh Yusuf al-Qaradawi

In a sermon aired on Al Jazeera TV on January 9, 2009 (as translated by MEMRI), Muslim cleric Sheikh Yusuf al-Qaradawi accused Starbucks of supporting Israeli education and the Israeli Army and called for a boycott of the company and other western chains.[95] Al-Qaradawi has previously called for a similar boycott of all US products with limited success.[96]

[edit] Accusations by Egyptian Cleric Safwat Higazi

On January 25, 2009, Egyptian Cleric Safwat Higazi claimed that Starbucks's "siren" logo is actually a depiction of the ancient Jewish queen Esther. He then called for Muslims to boycott all Starbucks coffee shops in the Arab world as a result.[97] Columnist Melanie Phillips has satirised this idea as the "The Protocol of the Drinkers of Coffee".[98]

[edit] The Way I See It

Quotes by artists, writers, scientists and others have appeared on Starbucks cups since 2005 in a campaign called "The Way I See It".[99] Some of the quotes have caused controversy, including one by gay writer Armistead Maupin and another by Jonathan Wells that linked 'Darwinism' to eugenics, abortion and racism.[100]

[edit] Music and film

Starbucks' second Hear Music Coffeehouse at the South Bank development adjacent to the River Walk in downtown San Antonio, Texas.

Hear Music is the brand name of Starbucks' retail music concept. Hear Music began as a catalog company in 1990 and was purchased by Starbucks in 1999. Nearly three years later, in 2002, they produced a Starbucks opera album, featuring artists such as Luciano Pavarotti.

In 2006 the company created Starbucks Entertainment, one of the producers of the 2006 film Akeelah and the Bee. Retail stores heavily advertised the film before its release.

[edit] Partnership with Apple

Starbucks has agreed to a partnership with Apple to collaborate on selling music as part of the "coffeehouse experience". In October 2006, Apple added a Starbucks Entertainment area to the iTunes Store, selling music similar to that played in Starbucks stores. In September 2007 Apple announced that there would be wireless communication between the iTunes Store and Starbucks, via AT&T (with no requirement to be an AT&T subscriber), targeted at iPhone, iPod Touch, and Macbook users. The iTunes Store will automatically detect recent songs playing in a Starbucks and offer users the opportunity to download the tracks. This feature has been rolled out in Seattle, New York City, and the San Francisco Bay Area, and was offered in limited markets during 2007–2008.[101] During the fall of 2007, Starbucks also began to sell digital downloads of certain albums through iTunes. Starbucks gave away 37 different songs for free download through iTunes as part of the "Song of the Day" promotion in 2007, and a "Pick of the Week" card is now available at Starbucks for a free song download.

[edit] See also

[edit] Further reading

  • Michelli, Joseph A. (2006). The Starbucks experience: 5 principles for turning ordinary into extraordinary, 208 pages. ISBN 0-07-147784-5.
  • Schultz, Howard and Dori Jones Yang. (1997). Pour Your Heart Into It: How Starbucks Built A Company One Cup At A Time, 350 pages. ISBN 0-7868-6315-3.
  • Behar, Howard with Janet Goldstein. (2007). It's Not About The Coffee: Leadership Principles from a Life at Starbucks, 208 pages. ISBN 1591841925.
  • Clark, Taylor. (2007). Starbucked: A Double Tall Tale of Caffeine, Commerce and Culture. 336 pages. ISBN 031601348X.

[edit] References

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  2. ^ Hoovers.com. URL last accessed September 5, 2006.
  3. ^ Starbucks Company Fact Sheet. URL last accessed March 17, 2007.
  4. ^ Starbucks Company Profile
  5. ^ http://seekingalpha.com/article/88153-starbucks-f3q08-qtr-end-6-30-08-earnings-call-transcript
  6. ^ "Starbucks thrives on consumer coffee habit", Beverage Daily, November 2005, http://www.beveragedaily.com/news/ng.asp?n=64001-starbucks-coffee-russia, retrieved on 2006-10-30 
  7. ^ Story not found - OregonLive.com
  8. ^ Diedrich to Sell Cafes to Rival
  9. ^ Starbucks still seeking a rhythm for Circadia - Puget Sound Business Journal (Seattle):
  10. ^ Kiviat, Barbara (2006-12-10). "The Big Gulp at Starbucks". TIME. http://www.time.com/time/magazine/article/0,9171,1568488,00.html. Retrieved on 2007-01-04. 
  11. ^ "Tantillo On The News: (Emergency) Starbucks Retrains" Marketing Doctor Blog. March 19, 2008.
  12. ^ "In Game Of Super Bowl Ads, GM Forfeits" ABC News, "Starbucks Shut Down 3.5 Hours For Training." February 26 26, 2008.
  13. ^ a b Starbucks Coffee Company to Acquire the Coffee Equipment Company and its Revolutionary Clover Brewing System
  14. ^ [1]
  15. ^ Tasting the Future of Starbucks Coffee From a New Machine - New York Times
  16. ^ Food & Water Watch (August 24, 2007) (in English). Starbucks Agrees to Hold the Hormones For Good. Press release. http://www.foodandwaterwatch.org/press/releases/starbucks-agrees-to-hold-the-hormones-for-good-article08242007. Retrieved on 2007-08-27. 
  17. ^ Schofield, Jack (24 March 2008). "Starbucks lets customers have their say". The Guardian. http://www.guardian.co.uk/technology/2008/mar/24/netbytes.starbucks?gusrc=rss&feed=technology. Retrieved on 2009-03-18. 
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