Starbucks

The Starbucks Logo

The idea of the siren used in the Starbucks logo originates from Herman Mellvilles Moby Dick She is designed to mesmerize the coffee drinkers; to lure them to the cup A slightly different logo was created for each coffee, and appeared beside it on the menu board as well as on the package of the coffee.

Starbucks Objective

To establish Starbucks as the most recognized and respected brand in the world.

Starbucks Mission Statement

To establish Starbucks as the premier purveyor of the finest coffee in the world, while maintaining our uncompromising principles while we grow.

Guidelines to Reach Mission Statement

Provide a great work environment and treat each other with respect. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of our coffee.

Guidelines to Reach Mission Statement (continued)

Develop enthusiastically satisfied customers all the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success.

Starbucks Timeline
Howard Schultz joins Starbucks as Dir. of Retail Schultz founded II Giomale offering brewed coffee & espresso beverages 84 w/ Starbucks coffee Starbucks locations beans

676 Starbucks locations & Starbucks Intl formed

2,292 Starbucks locations

1982 1971
1st Starbucks location in Seattle

1985 1984
Schultz tests new coffee bar concept

1990 1987
II Giomale acquires Starbucks assets Changes name to Starbucks Corp.

1995 1993
272 Starbucks locations

2000 1998 2003

6,604 Starbucks locations

1,886 Starbucks locations Joint venture w/ Magic Johnson Launch Starbucks .com

Acquired Seattles Best Coffee Co.

In the beginning
Starbucks first opened in 1971 in Seattles Pike Place Market. In 1982, Starbucks began providing coffee to espresso bars and fine restaurants.

 In 1987, Starbucks became Starbucks Corporation.

And this, of course, was just the beginning of the astounding growth that we have witnessed over the last decade.

So, does anyone remember where the Starbucks logo (the siren) came from?

Moby Dick, by Herman Mellville

The Growth of Starbucks

7000 6000 5000
Number of Stores

4000 6294 3000 4707 2000 2135 1412 17 55 1989 116 1991 272 1993 676 1995
Years S1

1000

0 1987

1997

1999

2001

2003

Starbucks Today
Starbucks now has approximately 6,294 coffeehouses in North America alone, And they have approximately 900 locations outside of North America.

They grow up so fastbut how?

 In 1991, Starbucks became the first privately owned company to offer a stock option program to all of their employees. Higher employee satisfaction leads to lower turnover rates, which in turn leads to lower employee training costs, which leads to greater profits.

 Starbucks also gives back to the community, both local and abroad. This provides Starbucks with plenty of good publicity. Starbucks also takes great interest in its suppliers well-beings.

Foreign Exchange
Starbucks opened its first store outside of North America in 1996, in Tokyo, Japan.

 Starbucks sometimes faces fierce opposition when trying to enter certain markets.
In 1999, when Starbucks came to downtown Athens, many locals and college students objected.

What major bookstore is a Starbucks most likely to be found inside?

In 1993, Starbucks Corporation started a relationship with Barns and Noble, Inc.

Since, they have won accounts with many other companies, such as:
Sheraton Hotels (now Starwood Hotels) United Airlines Nordstrom Canadian Bookstore Chapter Westin Hotels Canadian Airlines Kraft Foods (to extend into grocery stores) Hyatt Hotels Corp.

Starbucks Gives Back

CARE
Starbucks distributes funds in response to any natural disasters that may occur in countries where their coffee and tea originate.

Starbucks Foundation
Created by the Chairman of Starbucks, Howard Schultz. Dedicated to creating hope, discovery, and opportunity in communities where Starbucks are located.

Support Conservation Internationals Conservation Coffee Program

Encourages ecologically sound coffee growing practices.

FY 2002 Revenue by Division

85%
100 80 60 40 20 0 Company-Operated Retail Stores Speciality Operations

15%

FY 2002 Net Revenues

Millions 3,500
3,000 2,500 2,000 1,500 1,000 500 0 1997 1998 1999 2000 2001 2002 123 consecutive months of positive comparable store sales growth
1,308.7 975.4 1,686.8 2,177.6 2,649.0 3,288.9

11 consecutive fiscal years of comparable store sales growth of 5% or more Revenue growth of 24% in Fiscal Year 2002 Net Earnings of $2151 million

Starbucks Vs. Top Competitors Annual Revenue FY 2002

Millions

3,500 3,000 2,500 2,000 1,500 1,000 500 0

Source: Hoover's Online Services

3,288.9

Starbucks AFC Enterprises Diedrich Coffee

692.6 62.2

FY 2002 Specialty Operations % Revenue By Business Unit

30 25 20 15 10 5 0
18% 17% 13% 7%

27%

Foodservice Retail Store Licensing Intl Retail Store Licensing Grocery Channel Licensing Warehouse Club Accounts Interactive Operations Equity Investees & Other Initiatives

5%

FY 2002 % Retail Sales Mix by Product Type

80 70 60 50 40 30 20 10 0

77%

13% 6% 4%

Beverages

Food Items

Whole Bean

All Other Retail

Now for a tough oneAbout how many Starbucks stores are open?
There are approximately 6,294 Starbucks stores currently in operation

Your last chance to answer! Name the two Starbucks beverages available at most (nonStarbucks) retail centers:
Frappuccino Double Shot

Keeping it Fresh

Starbucks tries to introduce a few new beverage ideas every year, just to keep things interesting.

Notable Additions for 2002

Cream Frappuccino
Geared more towards non-coffee drinkers

Starbucks Card Name Game

Effort to get to know customers

They say, Dont mess with a good thingbut what if we did?

Say Starbucks wanted to introduce a new, very aromatic coffee beverage. Is the observation method the best way to go? Of course!
Personal observation should be used to evaluate peoples reaction to the new flavor and aroma. Mechanical observation should be used to track the sales of the new product.

Survey Results

Why do you go to Starbucks?

12 12

10

6 4 4 2 2 1 1 1

0 Quality of Drinks Atmosphere

Starbucks' Beverages as Compared to Others

7 7 6 6

3 2 2

1 0 0 Better than Others Not as Good as than Others 0

Starbucks' Atmosphere as Compared to Others

8 8

0 Better than Others Not as Good as Others

How Likely are You to Choose Starbucks over Others?

8 8

0 Very Likely Not at all Likely

How Frequently do you Visit Starbucks?

14

13

12

10

6 4 4 2 2 1

0 More than Once a Week Once a Week Once a Month Once a Year Never

For What Purpose do You go to Starbucks?

Socialize with Friends 16%

Just to get some coffee and leave 47%

To do office/school work 28%

To read 9%

Starbucks Snapshot
Store #: Store: Date: Time: Basic Score: Legendary Service:

Store #:____________________Date:___________

Basic Score _________ Cleanliness /26

/5 /5 /4 /4 /4 /1 /2 /1 Tables and chairs clean (inside and outside) Condiment bar clean/free of debris Floors free of spills/debris Restroom clean/supplies available Trash cans clean and not overflowing (inside and outside) Back service counter clean and organized Pastry case clean and organized Pastries signed correctly

Legendary Service
* = Very Poor ** = Poor *** = Neutral **** = Good ***** = Legendary Describe the tone or feeling of the service experience in the store.

Service
Register partner verbally greeted you Register partner made eye contact Register partner thanked you Barista thanked you Barista made eye contact Partner displayed knowledge of products Partners were neat and clean

/34
/6 /4 /6 /6 /4 /4 /4

Comments:____________________________

____________________________________ ____________________________________ ____________________________________ ____________________________________

Did you see any customers being personally recognized? ___________________________________________ ___________________________________________ ___________________________________________

____________________________________ ____________________________________ ____________________________________ ____________________________________

Comments:____________________________

____________________________________ ____________________________________ ____________________________________ Speed of Service /16

____ /16 ____ ____ ____ ____

Product Quality

/24

Beverage Purchased: _________________________ Order was filled accurately /6 Beverage temp acceptable /6 Beverage weight acceptable /6 Beverage presented correctly /3 Condiment bar supplies available /3 Comments:____________________________

Total Wait Time Total time within the standards? Amount of time spent in line Amount of time waiting for beverage Number of service channels/lines open Number of partners observed on floor Service Times <3 min = 16 pts 3:01 3:30 = 13 3:31 4:00 = 10 4:01 4:30 = 7 4:31 5:00 = 4 >5 min = 0 pts

Were all partners focused on customer needs?

____________________________________ ____________________________________ ____________________________________

____________________________________ ____________________________________ ____________________________________ ____________________________________

Did you see any partners initiate conversation with customers? ___________________________________________ ___________________________________________ ___________________________________________

Comments:____________________________

____________________________________ ____________________________________ ____________________________________

Were partner responsive to service delays or other issues that occurred? ___________________________________________ ___________________________________________ ___________________________________________