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FUCK STARBUCKS!!!!! FRENCH PRESS COFFEE HOUSE IS THE SHIT! STAR BUCKS CAN KISS MY ASS!!!! |
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{{Infobox Company |
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| name = Starbucks Corporation |
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| logo = [[Image:Starbucks Coffee Logo.svg|200px|centre|Starbucks logo]] |
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| type = [[Public company|Public]] ({{nasdaq|SBUX}}) |
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| genre = |
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| foundation = In 1971 across from [[Pike Place Market]] in [[Seattle, Washington]] |
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| founder = |
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| location_city = |
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| location_country = |
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| location = [[Seattle, Washington|Seattle]], [[Washington]], [[United States|USA]] |
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| locations = |
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| area_served = |
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| key_people = [[Howard Schultz]], [[Chairman]], [[President]] and [[Chief Executive Officer|CEO]] <br />Martin Coles, Chief Operating Officer <br />James C. Alling, President, Starbucks International <br />Peter Bocian, [[Chief Financial Officer]] |
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| industry = [[Restaurant]]s <br />Retail [[Coffee]] and [[Tea]] <br />[[Retail|Retail Beverages]] <br />[[Entertainment]] |
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| products = [[Coffee|Whole Bean Coffee]] <br />[[Tea|Boxed Tea]] <br />Made-to-order beverages <br/>Bottled beverages <br />[[Baking|Baked Goods]] <br />[[Merchandise]] <br />[[Frappuccino|Frappuccino beverages]] |
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| services = |
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| revenue = {{profit}} [[United States dollar|US$]]9.411 billion (2007) |
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| operating_income = {{profit}} [[United States dollar|US$]]1.053 billion (2007) |
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| net_income = {{profit}} [[United States dollar|US$]]672.64 million (2007) |
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| assets = [[United States dollar|US$]]5.343 billion (2007) |
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| equity = [[United States dollar|US$]]2.284 billion (2007) |
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| owner = |
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| num_employees = 172,000 (Dec '07) |
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| parent = |
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| divisions = |
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| subsid = Starbucks Coffee Company <br />[[Tazo|Tazo Tea Company]] <br />[[Seattle's Best Coffee]] <br />[[Torrefazione Italia]] <br />[[Hear Music]] <br />[[Ethos water|Ethos Water]] |
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| slogan = |
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| homepage = [http://www.starbucks.com Starbucks.com] |
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| footnotes = |
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| intl = |
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}} |
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'''Starbucks Corporation''' ({{nasdaq|SBUX}}) is a transnational [[coffee]] and [[coffeehouse]] [[List of coffeehouse chains|chain]] company based in the [[United States]]. Starbucks is the largest coffeehouse [[Corporate law|company]] in the world,<ref>[http://www.hoovers.com/starbucks/--ID__15745--/free-co-factsheet.xhtml Hoovers.com]. URL last accessed September 5, 2006.</ref> with 15,011 stores in 44 countries.<ref name="factsheet">[http://www.starbucks.com/aboutus/Company_Factsheet.pdf Starbucks Company Fact Sheet]. URL last accessed March 17, 2007.</ref> Starbucks sells [[drip brew|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 these products are seasonal or specific to the locality of the store. Starbucks brand ice cream and coffee are also sold at grocery stores. |
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From Starbucks's founding in [[Seattle, Washington|Seattle]], [[Washington]], as a local [[coffee bean]] roaster and retailer, Starbucks has expanded rapidly. In the [[1990s]], the company was opening a new store every workday, a pace that continued into the [[2000s]]. Domestic growth has since slowed, although the company continues to expand in foreign markets and is opening 7 stores a day worldwide. The first location outside of the U.S. and Canada was established in [[1996]], and they now constitute almost one third of Starbucks' stores.<ref>[http://www.starbucks.com/aboutus/Company_Profile.pdf Starbucks Company Profile]</ref> |
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As of [[November 2007]], Starbucks had 8,505 company-owned outlets worldwide: 6,793 of them in the United States and 1,712 in other countries and U.S. territories. In addition, the company has 6,506 joint-venture and licensed outlets, 3,891 of them in the United States and 2,615 in other countries and U.S. territories. This brings the total locations (as of [[November 2007]]) to 15,011 worldwide.<ref name="factsheet"/> |
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Starbucks can be found in many popular grocery chains in the U.S. and Canada, as well as in many airports. Starbucks was recently ranked number fifteen on the U.S. Environmental Protection Agency's list of Top 25 Green Power Partners for purchases of renewable energy.<ref>{{citation |title=National 25 Green Power Partners |url=http://www.epa.gov/greenpower/toplists/top25.htm |date=January 8 2008 |accessdate=April 15 2008}}</ref> |
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Starbucks' corporate headquarters are in [[Seattle, Washington]], [[United States]]. As of [[January 2008]], the members of the company's [[board of directors]] are [[Howard Schultz]] (Chair), Barbara Bass, Howard Behar, Bill Bradley, Mellody Hobson, Olden Lee, James Shennan, Jr., Javier Teruel, Myron Ullman, III, and Craig Weatherup. |
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==History== |
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The original Starbucks was opened 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 Coffee & Tea|Peet's]], then began buying directly from growers. |
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[[Image:Starbucks leeds.jpg|thumb|200px|left|A Starbucks coffee shop in [[Leeds]], [[United Kingdom]]]] |
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Entrepreneur [[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. To them, [[coffee]] was something to be prepared in the home. Certain that there was much money to be made selling drinks to on-the-go Americans, Schultz started the ''Il Giornale'' coffee bar chain in [[1985]]. |
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In [[1984]], the original owners of Starbucks, led by Baldwin, took the opportunity to purchase Peet's (Baldwin still works there today). 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 (Vancouver)|Waterfront Station]] in [[Vancouver]], [[British Columbia]], [[Canada]] (which now has more locations than anywhere in the world){{Fact|date=September 2007}} and [[Chicago]], [[Illinois]], [[United States]] that same year. At the time of its [[IPO|initial public offering]] on the stock market in [[1992]], Starbucks had grown to 165 outlets. |
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[[Image:Starbucks Headquarters Seattle.jpg|thumb|200px|right|Starbucks Headquarters, [[Seattle, Washington|Seattle]].]] |
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The first Starbucks location outside of North America opened in [[Tokyo]] 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 its stores as Starbucks. By [[November 2005]], [[London]] had more outlets than [[Manhattan]],<ref>{{Citation |title=Starbucks thrives on consumer coffee habit |url=http://www.beveragedaily.com/news/ng.asp?n=64001-starbucks-coffee-russia |newspaper=Beverage Daily |date=November 2005 |accessdate=30 October 2006}}</ref> a sign of Starbucks becoming an international brand. |
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In 1999, Starbucks experimented with eateries in the San Francisco Bay area through a restaurant chain called Circadia.<ref>[http://www.bizjournals.com/seattle/stories/1999/10/18/newscolumn3.html Starbucks still seeking a rhythm for Circadia - Puget Sound Business Journal (Seattle):<!-- Bot generated title -->]</ref> These restaurants were soon "outed" as Starbucks establishments and converted to Starbucks cafes. |
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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 representatives have been quoted as saying they will convert the Diedrich Coffee and Coffee People locations to Starbucks stores.<ref>http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1158290703132110.xml&coll=7</ref><ref>[http://www.latimes.com/business/la-fi-diedrich15sep15,1,6467410.story?coll=la-headlines-business]{{Dead link|date=March 2008}}</ref> |
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Starbucks' chairman, [[Howard Schultz]], has talked about making sure growth doesn't dilute the company's culture <ref>{{cite journal | last = Kiviat | first = Barbara | title = The Big Gulp at Starbucks | journal = [[TIME]] | date = [[2006-12-10]] | url = http://www.time.com/time/magazine/article/0,9171,1568488,00.html | accessdate = 2007-01-04 }}</ref> and the common goal of the company's leadership to act like a small company. |
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In January 2008, Chairman [[Howard Schultz]] resumed his role as Chief Executive Officer, replacing Jim Donald, who had succeeded Schultz in 2000. Schultz's principal challenge is 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]]. <ref>"[http://www.findingdulcinea.com/news/business/Starbucks--Out-with-the-New--In-with-the-Old-.html Starbucks:Out with the New, In with the Old]." "findingDulcinea" January 12, 2008 </ref> On January 31, 2008, Schultz announced that Starbucks would discontinue its warm breakfast sandwich products, originally scheduled to launch nationwide in 2008, in order to refocus the brand on all things coffee. |
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As Starbucks often tests new products as part of its ongoing innovation and transformation, Starbucks started testing selling an 8 oz "short" brewed coffee for $1 and giving free refills on all brewed coffee. This test was limited to the greater Seattle market, with no plans for expansion to national markets. Per an internal email this program was cancelled in late March 2008. The normal price for a short brewed coffee at Starbucks is about $1.50, when Dunkin' Donuts 10 ounce coffee runs for $1.39 and McDonalds' 12 ounce premium coffee is $1.07. <ref>http://www.msnbc.msn.com/id/22804805/ </ref> |
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In March 2008, Schultz made several announcements to Starbucks [[shareholders]]. Shultz introduced Starbucks' "state of the art espresso system",,<ref>http://www.starbucks.com/aboutus/pressdesc.asp?id=848</ref> the [[Thermoplan AG]] manufactured Mastrena, which will replace the Verismo 801. Starbucks also announced that the company hopes to enter the energy drink market and introduce a customer reward program. Pre-ground beans will also no longer be sold, in order that the additional grinding of all whole bean coffee will "bring aroma, romance and theater" to American stores. <ref>http://www.examiner.com/a-1288468~Starbucks_to_grind_beans_to_bring_back_coffee_aroma_to_stores.html</ref> The company also announced the recent acquisition of The Coffee Equipment Company,<ref>http://www.starbucks.com/aboutus/pressdesc.asp?id=848</ref> the manufacturer of the Clover Brewing System. They are currently test marketing this unique "fresh-pressed" coffee system at six Starbucks locations, three in Seattle, and three in Boston.<ref>http://www.nytimes.com/2008/03/26/dining/26starbucks.html?ref=business</ref> |
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==Products== |
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[[Image:StarbucksVentiMintMochaChipFrappuccino.jpg|thumb|90px|right|A Starbucks Venti Java Chip Frappuccino]] |
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Starbucks serves a variety of beverages including brewed [[coffee]], hot chocolate, espresso, [[tea]]s, and [[Frappuccino]]. Also available are bottled beverages including [[Naked Juice]], [[Ethos water]], [[San Pellegrino]], [[Izze]] soda, and [[Horizon Organic]] Milk. |
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[[Cappuccino]]s, and all other beverages with steamed-milk and/or foam can be customized to order with pumps of flavored syrups, reasonable temperature changes and additional espresso shots. Starbucks also offers blended beverages, such as the "Frappuccino Blended Coffee", a flavored drink of coffee, milk, and sugar blended with ice. The name is a [[portmanteau]] of ''[[frappé]]'' and ''[[cappuccino]]'' and was introduced in 1995. Starbucks markets seasonal beverages as well, such as the Pumpkin Spice Latte (Thanksgiving), Gingerbread Latte, Peppermint Mocha, Eggnog Latte (Christmas), and Leprechaun Latte (St. Patrick's Day). There is also seasonal brewed coffee, like the "Christmas Blend" of whole bean coffee. |
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Starbucks supplements the beverage offerings with [[pastries]], ready-to-eat salads and sandwiches, coffee merchandise, at-home brewing equipment, and whole bean coffee. |
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Starbucks sells a variety of ready-to-eat and drink products that are kosher, but due to business hours and sandwich products a Starbucks store cannot be certified 'kosher' according to Jewish law.<ref>[http://www.starbucks.com/customer/faq_qanda.asp?name=nutrition Frequently Asked Questions]</ref> |
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Starbucks does not franchise with individuals within North America but does enter into licensing arrangements with some companies.<ref>{{cite web |
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|url = http://www.starbucks.com/customer/faq_qanda.asp?name=businessopps |
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|title = Frequently Asked Questions |
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|accessdate = August 7 |
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|accessyear = 2007}}</ref> One example is of Starbucks store locations in [[airports]], most of which are operated by [[HMSHost]], owned by the Italian [[Autogrill]] group. Other licensed locations include grocery stores,theme parks, major food services corporations, university campuses and hospitals. In addition, Starbucks has partnered with [[Magic Johnson]]'s Johnson Development Corporation to form Urban Coffee Opportunities, which opens retail locations in low-income urban areas.<ref>{{cite web |url=http://www.johnsondevelopmentcorp.com/starbucks/index.html |title=Urban Coffee Opportunities |accessdate=2005-05-18 }}</ref> |
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===Staffing=== |
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There are usually from two to six partners (as Starbucks employees are called), all of them trained [[barista]]s, in each retail store at any one time. Black aprons labeled "Coffee Master" are worn by employees who have completed the Coffee Master course, which educates employees in not only the tasting, but also growing regions, roasting, and purchasing (including [[fair trade]] practices) aspects of the coffee industry. |
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In the [[United States]] and [[Canada]] Starbucks offers full benefits such as health, dental, and vision insurance, as well as [[Option (finance)|stock-option]] grants and [[401(k)]] with matching to employees who work an average of at least 20 hours per week. Each employee can receive a box of tea or a pound (0.45kg) of coffee each week if they choose. As of 2008, Starbucks was ranked by ''Fortune'' magazine as the 7th best company to work for in the United States, up from 16th in 2007. In 2006 and 2005 it was ranked 29th and 11th, respectively.<ref>{{cite web |url=http://money.cnn.com/magazines/fortune/fortune_archive/2005/01/24/8234074/index.htm |title=100 Best Companies to Work For: Starbucks |work=Fortune |accessdate=2007-04-25 }}</ref> Starbucks was also voted as one of the top ten UK workplaces by the ''[[Financial Times]]'' in 2007. |
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==="The Third Place"=== |
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<div style="float:right;width:210px;"> |
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[[Image:Starbucks-germany.jpg|none|thumb|200px|Starbucks in [[Frankfurt|Frankfurt am Main]], [[Germany]]]] |
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</div> |
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Starbucks envisions local outlets as a "[[The Third Place|third place]]" (besides home and work) to spend time, and store design is intended to achieve this. The café section of the store is often outfitted with stuffed chairs and tables with hard-backed chairs. Most stores provide free electricity for customers, and many stores also provide wireless internet access (provided in American stores by [[AT&T]]<ref>{{cite web |
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|url=http://wifinetnews.com/archives/008175.html |
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|title=T-Mobile Loses Starbucks; AT&T Becomes Wi-Fi Hotspot Giant |
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}}</ref> and in Canadian stores by [[Bell Mobility]]).<ref>{{cite web |
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|url=http://canadianhotspots.ca/advancedsearch.php?keywords=Starbucks |
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|title=Canadian Hotspot Roaming Alliance (CHRA) Location Search |
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}}</ref> |
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The company is noted for its [[smoking ban|non-smoking]] policy at almost all of its outlets, despite predictions that this would never succeed in markets such as [[Germany]], which used to have few restrictions on [[Tobacco smoking|smoking]]. This has changed in 2007 with many German states issuing [[smoking ban]]s for restaurants and bars. Outlets in [[Vienna]] and [[Mexico City]], which have smoking rooms separated by double doors from the coffee shop itself, and a smoking room upstairs in the [[Senado Square|Largo do Senado]], [[Macau]], branch are the closest the company has come to making exceptions. According to the company, the smoking ban is to ensure that the coffee aroma is not adulterated. The company also asks its employees to refrain from wearing strong perfumes for similar reasons.<ref>{{Citation | first = Mark | last = Pendergrast | title = Uncommon Grounds: The History of Coffee and How It Transformed Our World | place = New York | publisher = Basic Books | year = 1999 | isbn = 0465054676 | page = 374 }}</ref> Starbucks generally does not prohibit smoking in outside seating areas, unless required by [[List of smoking bans|local codes]]. |
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===International operations=== |
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[[Image:NewStarbucks.png|thumb|200px|Countries that contain Starbucks stores]] |
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[[Image:Starbucksdesk.jpg|thumb|A typical sales area, this one in [[Peterborough]], [[UK]], showing a display of food and the beverage preparation area]] |
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[[Image:Starbucks Coffee - SHIBUYA TSUTAYA STORE.JPG|thumb|right|150px|Starbucks inside [[Tsutaya (video store)|Tsutaya]] in [[Shibuya]], [[Japan]]]] |
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Stores are now found in [[Australia]], [[Austria]], [[Bahamas]], [[Bahrain]], [[Brazil]], [[Canada]], [[Chile]], [[People's Republic of China|China]] (including [[Hong Kong]] and [[Macau]]), [[Cyprus]], [[Czech Republic]], [[Denmark]], [[Dominican Republic]], [[Egypt]], [[France]], [[Germany]], [[Greece]], [[India]], [[Indonesia]], [[Iraq]], [[Republic of Ireland|Ireland]], [[Japan]], [[Jordan]], [[Kuwait]], [[Lebanon]], [[Malaysia]], [[Mexico]], [[Netherlands]], [[New Zealand]], [[Oman]], [[Peru]], [[Philippines]], [[Puerto Rico]], [[Qatar]], [[Romania]], [[Russia]],<ref>[http://news.yahoo.com/s/nm/20070906/bs_nm/russia_starbucks_dc_1 Reuters - "Starbucks opens first coffee shop in Russia"]</ref> [[Saudi Arabia]], [[Singapore]], [[South Korea]], [[Spain]], [[Switzerland]], [[Republic of China|Taiwan]], [[Thailand]], [[Turkey]], [[United Arab Emirates]], and [[United Kingdom]]. |
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New stores will be opened in [[Belgium]],<ref>[http://www.lacapitale.be/la_une/details/2008/03/14/article_un_starbucks_a_bruxelles_dans.shtml La Capitale - "Un Starbucks à Bruxelles dans un an."]</ref> [[Argentina]],<ref>[http://biz.yahoo.com/ap/070725/mexico_starbucks_expansion.html?.v=2 Yahoo! Finance - "Starbucks Plans to Expand Into Argentina."]</ref> [[Bulgaria]],<ref>[http://dnevnik.bg/show/?storyid=399425 Dnevnik - "Starbucks Expands in Bulgaria"]</ref> [[Colombia]],<ref>[http://biz.yahoo.com/ap/070725/mexico_starbucks_expansion.html?.v=2 Yahoo! Finance - "Starbucks Plans to Expand Into Argentina."]</ref> [[Hungary]],<ref>[http://www.amrest.pl/eng/wse_announcements.php?271 AmRest - "RB 23/2007 Joint Venture Agreements with Starbucks"]</ref> [[India]], [[Iraq]], [[Morocco]], [[Poland]],<ref>[http://www.amrest.pl/eng/wse_announcements.php?271 AmRest - "RB 23/2007 Joint Venture Agreements with Starbucks"]</ref> [[Portugal]],<ref>[http://www.flex-news-food.com/pages/13140/Coffee/Starbucks/starbucks_expands_europe.html Flex News - "Starbucks Expands in Europe"]</ref> [[Serbia]], [[South Africa]], and [[Venezuela]] <ref>[http://news.bbc.co.uk/hi/spanish/business/newsid_1842000/1842566.stm. "Starbucks vuela a América Latina"]</ref>. |
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==Intellectual property== |
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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]].<ref>[http://assignments.uspto.gov/assignments/q?db=tm&asned=STARBUCKS%20U.S.%20BRANDS,%20LLC USPTO]</ref> |
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===Name=== |
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The company is named in part after [[Starbuck (Moby-Dick)|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.<ref name="pouryourheart">{{cite book |last=Schultz |first=Howard |coauthors=Dori Jones Yang |title=Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time'' |year=1997 |publisher=Hyperion |location=New York |isbn=0-7868-6315-3 }}</ref> |
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International names include: |
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*[[Arabic]]-speaking countries: ستاربكس (transliteration: ''stārbaks'') |
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*[[People's Republic of China|China]], [[Hong Kong]], [[Taiwan]]: [[wiktionary:星|星]][[wiktionary:巴|巴]][[wiktionary:克|克]] [[Pinyin]]: xīngbākè (星 xīng means "star", while 巴bā 克kè is a [[transliteration]] of "-bucks") |
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*[[Israel]]: סטארבקס (transliteration: ''sṭārbaqs'') |
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*[[Japan]]: スターバックス (transliteration: ''sutābakkusu'', phonological: ''staa-bahkss'') |
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*[[Russia]]: Старбакс (transliteration: ''Starbaks'') |
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*[[South Korea]]: 스타벅스 (transliteration: ''seutabeokseu''), often used in conjunction with the English name |
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*[[Quebec]], [[Canada]]: Café Starbucks Coffee<ref>All Business. [http://www.allbusiness.com/manufacturing/food-manufacturing-food-coffee-tea/788728-1.html Starbucks Pours into Quebec]. 2001-05-20. Last Accessed: 2007-11-13</ref> (added the French word to avoid controversy with local language politics) |
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*[[Thailand]]: สตาร์บัคส์ {{pronounced|sǒtāːbākʰō}} |
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===Logo=== |
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The logo is a "twin-tailed siren" (the [[siren]] of [[Greek mythology]]).<ref name="pi-logo">{{cite news |title=The Insider: Principal roasts Starbucks over steamy retro logo |work=Seattle Post-Intelligencer |date=[[2006-09-11]] |url=http://seattlepi.nwsource.com/business/284533_theinsider11.html |accessdate=2007-05-23 }}</ref> |
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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, 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, 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. |
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At the beginning of [[September 2006]], 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 to the siren's bare breasts. In September 2006, an elementary school principal in [[Kent, Washington|Kent]], [[Washington]] reportedly asked teachers to "cover up" the mermaid on the retro cups.<ref name="pi-logo" /> In early April 2008 Starbucks introduced a modified version of its original brown logo on hot beverage cups and holding sleeves with the 'Back to Basics' campaign. The modified version features hair covering the nipples of the siren. |
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===Parodies and infringements=== |
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In [[2000]], [[San Francisco, California|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 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 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.<ref>{{cite web |url=http://www.cbldf.org/pr/001130-starbucks.shtml |title=Cartoonist Kieron Dwyer Sued By Starbucks |date=[[2000-11-30]] |accessdate=2007-05-23 |publisher=Comic Book Legal Defense Fund }}</ref> |
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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.<ref>{{cite news |last=Adamy |first=Janet |url=http://english.cri.cn/2946/2006/11/29/199@168770.htm |title=Eyeing a Billion Tea Drinkers, Starbucks Pours It On in China |work=The Wall Street Journal |date=[[2006-11-29]] |page=A1 |accessdate=2007-05-23 }}</ref> |
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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.<ref>{{cite web |last=Malone |first=Michael| url=http://www.williams.edu/go/native/names.htm |title=Fightin' Words | work=Restaurant Business |date= [[2005-03-05]] |accessdate=2007-12-03}}</ref> |
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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.<ref>{{cite web |url=http://www.iht.com/articles/2006/10/11/bloomberg/bxstarbucks.php |title=Starbucks loses lawsuit on trademark in Korea}}</ref> |
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==Criticism and controversy== |
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Starbucks has come to be regarded by some, particularly in the global justice movement, as symbolic of the problems posed by [[globalization]]. Several activist groups maintain websites criticizing the company's [[Fair trade|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 [[World Trade Organization|WTO]] [[WTO Ministerial Conference of 1999 protest activity|meeting held in Seattle in late 1999]]. Although no organization claimed responsibility for the vandalism, the [[anarchism|anarchist]] circle-A symbol was spray-painted on several stores.<ref>[http://edition.cnn.com/2000/US/11/30/starbucks.vandals/index.html Edition.cnn.com] URL last accessed [[July 3]], [[2006]].</ref> |
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[[Image:Starbucks at the Forbidden City.jpg|thumb|Starbucks at the [[Forbidden City]] in [[Beijing]] (closed since July 2007)]] |
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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".<ref>[[International Herald Tribune]]: ''[http://www.iht.com/articles/2007/07/15/business/starbucks.php Starbucks closes coffeehouse in Beijing's Forbidden City]''</ref><ref>[[CNN]].com: ''[http://money.cnn.com/2007/07/14/news/international/starbucks_forbiddencity.reut/ Starbucks out of China's Forbidden City]''</ref><ref>[[BBC News]]: ''[http://news.bbc.co.uk/2/hi/asia-pacific/6898629.stm Forbidden City Starbucks closes]''</ref><ref>[[Fairfax Media|theage.com]]: ''[http://www.theage.com.au/news/news/starbucks-quits-forbidden-city/2007/07/14/1183833822908.html Protests shut Starbucks in Beijing's imperial palace]''</ref> |
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===Anti-competitive tactics=== |
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Some of the methods Starbucks has used to expand and maintain their dominant market position, such as buying out competitors' leases, acquiring independent coffee shops and converting them into Starbucks stores, and clustering several locations in a small geographical area (i.e., saturating the market), have been labeled anti-competitive by critics.<ref>Klein, N. (2001). ''No Logo'' New York: Flamingo, pp. 135-140</ref> For example, Starbucks fueled its initial expansion into the UK market with a buyout of a major potential competitor (the 49 outlet, UK-based Seattle Coffee Company), 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.<ref>BBC News. (2004, June 9). [http://news.bbc.co.uk/2/hi/business/3086727.stm" Store Wars: Cappuccino Kings".] Retrieved 2007-10-07.</ref> |
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===Labor disputes=== |
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Since 2004, workers at seven Starbucks stores in [[New York City]] have joined the [[Industrial Workers of the World]] (IWW) as the [[Starbucks Workers Union]].<ref name="Allison">{{cite news | last = Allison | first = Melissa | title = Union struggles to reach, recruit Starbucks workers | publisher = [[The Seattle Times]] | date = [[2007-01-04]] | url = http://seattletimes.nwsource.com/html/businesstechnology/2003505497_union02.html | accessdate = 2007-05-18 }}</ref> |
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[[Image:StarbucksBoston.jpg|right|222px|thumb|Starbucks in the [[Financial District, Boston, Massachusetts|Financial District]] of [[Boston, Massachusetts]]]] |
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According to a Starbucks Union press release, since then, the union membership has begun expanding to Chicago and Maryland.<ref>[http://www.starbucksunion.org/node/1151 Starbucks Workers Union Expands to Maryland in Spite of Harsh Anti-Union Effort | IWW Starbucks Workers Union News | All News | Starbucks Union<!-- Bot generated title -->]</ref> 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.<ref>[http://newyorkmetro.com/nymetro/news/features/12060/index.html New York Magazine]</ref><ref>[http://www.starbucksunion.org/files/usgovsettle.pdf NLRB Settlement]</ref><ref>[http://www.nypress.com/19/25/informationagent/agent4.cfm New York Press]</ref> 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, Great Britain and New Zealand, as well as U.S. cities including New York, Chicago, Minneapolis and San Francisco,<ref>[http://www.starbucksunion.org/node/1149 Global actions target Starbucks union-busters | IWW Starbucks Workers Union News | All News | Starbucks Union<!-- Bot generated title -->]</ref> to protest the firing of five Starbucks Workers Union organizers by Starbucks and to demand their reinstatement. |
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Some Starbucks baristas in Canada,<ref>[http://www.vancourier.com/issues02/044202/news/044202nn7.html Vancouver Courier]</ref> Australia and New Zealand,<ref name="Collins">{{cite news | last = Collins | first = Simon | title = Starbucks staff stir for wage lift | publisher = [[New Zealand Herald]] | date = [[2005-11-24]] | url = http://www.nzherald.co.nz/section/story.cfm?c_id=1&objectid=10356712 | accessdate = 2007-05-18 }}</ref> and the United States<ref>[http://www.chicagobusiness.com/cgi-bin/news.pl?id=21891 Crain's Chicago Business]</ref> belong to a variety of unions. |
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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.<ref name="Allison"/> |
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A Starbucks strike occurred in [[Auckland]], [[New Zealand]], on [[November 23]], [[2005]].<ref name="Collins"/> Organized by [[Unite Union]], workers sought secure hours, a [[minimum wage]] of NZ$12 an hour, and the abolition of youth rates. The company settled with the Union in 2006, resulting in pay increases, increased security of hours, and an improvement in youth rates.<ref>[http://www.nbr.co.nz/search/search_article.asp?id=14773&cid=0&cname=Results National Business Review]</ref> |
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According to Starbucks Chairman Howard Schulz, "If they had faith in me and my motives, they wouldn't need a union." According to ''The Seattle Times'', "The International Union of Operating Engineers Local 286 had trouble with Starbucks at its Kent roasting plant, where the union no longer represents workers".<ref name="Allison"/> |
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In [[March]] [[2008]], Starbucks was ordered to pay [[barista]]s over [[US$]]100 million in back tips in a [[California]]n [[class action lawsuit]] launched by baristas alleging that supervisors were granted a portion of [[tip]]s, which violates state [[labor laws]]. The Company plans to appeal. Similarly, an 18 year-old barista in Chestnut Hill, MA has just filed another suit with regards to the tipping policy. Massachusetts law also states that managers may not get a cut of tips.<ref>{{cite news | title = Judge orders Starbucks to pay more than $100 million in back tips | publisher = [[Yahoo!|Yahoo! Canada News]] | date = [[2008-03-21]] | url = http://ca.news.yahoo.com/s/capress/starbucks_tipping_suit | accessdate = 2008-03-21 }}</ref><ref>http://bostonist.com/2008/03/26/starbucks-lawsuit-032608.php Chestnut Hill, MA Starbucks Employee Sues</ref> A similar lawsuit was also filed in Minnesota on March 27th, 2008. <ref>http://www.swcbulletin.com/articles/index.cfm?id=9482</ref> |
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===Coffee bean market=== |
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In 2000, the company introduced a line of [[fair trade]] products.<ref>[http://www.seattleweekly.com/news/0048/news-fefer2.php Seattleweekly.com] URL last accessed [[July 3]], [[2006]].</ref> |
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Of the approximately 136,000 tonnes (300 million pounds) of coffee Starbucks purchased in 2006, about 6 percent was certified as fair trade.<ref>{{cite web |
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|url=http://www.thestar.com/living/article/250730 |
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|title=TheStar.com - living - The fine print of ethical shopping: |
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|quote=About 6 per cent of Starbucks' coffee (about 18 million pounds) was certified as fair trade in 2006. The company buys almost 300 million pounds of coffee a year. |
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|}}</ref> |
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According to Starbucks, they purchased 2,180 tonnes (4.8 million pounds) of Certified Fair Trade coffee in fiscal year 2004 and 5,220 tonnes (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,<ref>[http://www.transfairusa.org Transfair USA] URL last accessed [[July 3]], [[2006]]</ref> 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 by saying: |
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{{bquote|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.}} |
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Groups such as [[Global Exchange]] are calling for Starbucks to further increase its sales of fair trade coffees. However, fair trade certification can cost US$20,000 to US$30,000{{Fact|date=November 2007}}, and many growers are unwilling or unable to pay for certification{{Fact|date=November 2007}}. |
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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, $1.20 per pound ($2.64kg) for high-quality coffee beans.<ref>{{cite web|url=http://www.starbucks.com/aboutus/bizofcoffee.asp |title=Premium Prices and Transparency}}</ref> The is in comparison to commodity prices which were as low as 50-60 cents in 2003-2004 <ref>{{cite web|url=http://www.edc.ca/english/docs/ereports/commentary/publications_11645.htm |title=Coffee Market Under Stress }}</ref> |
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===Ethos water controversy=== |
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[[Ethos water|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 $1.80USD bottle sold ($.10 per unit in Canada) is used to fund clean water projects in under-developed areas. Although sales of Ethos water has raised over $4,000,000 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 Starbucks brand and the vast majority of the sale price (over 94%) does not support clean-water projects.<ref>[http://www.nowtoronto.com/issues/2007-03-22/news_story4.php NOW Magazine] Maybe they're not trying to sell anything on World Water Day, but every other day of they year they are selling water.''</ref> <ref>[http://www.shareholder.com/visitors/dynamicdoc/document.cfm?CompanyID=SBUX&DocumentID=1382 Starbucks Corporation 2006 Annual Report]</ref> 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.<ref>Walker, R. (2006, February 26). [http://www.nytimes.com/2006/02/26/magazine/26wwln_consumed.html?_r=1&oref=slogin Consumed: Big Gulp.] ''New York Times Magazine.'' Retrieved 2007-10-07</ref> Starbucks has since redesigned the American version of the Ethos water bottles, stating the amount of money donated per bottle in the description. |
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===Recycled paper cups=== |
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In 2006, Starbucks introduced cups made with 10 percent recycled material. With 1.5 billion cups used annually in the United States at that time, the change was estimated to save approximately five million pounds of virgin tree fiber a year. Prior to the announcement, Starbucks used recycled paper into its cardboard cup sleeves, napkins, and cardboard carriers. A major obstacle for the recycled paper cup was that recycled content had never before been used in direct contact with food, especially not with steaming hot beverages. Although permission was not required, Starbucks and its pulp manufacturer, the Mississippi River Corporation, decided to seek [[Food and Drug Administration]] approval for the new cups. Had Starbucks not bothered to get F.D.A. approval, the cup development process would have taken only three months instead of more than two years. Starbucks said it was the first time that a national food chain had incorporated recycled material into packaging that comes into direct contact with food or beverages, but critics claim that the company should be doing much more to protect the environment.<ref>{{cite web| title=Starbucks Will Use Cups With 10% Recycled Paper |url=http://www.nytimes.com/2004/11/17/business/17starbucks.html}}</ref><ref>{{cite web| title=Starbucks Paper Project: Changing the way coffee is served |url=http://www.environmentaldefense.org/article.cfm?contentID=791}}</ref> |
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==Other ventures== |
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{{main|Hear Music}} |
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[[Image:Starbuckssanmiguel.JPG|thumb|right|300px|A Starbucks located in [[San Miguel District, Lima]], [[Peru]]]] |
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Starbucks entered the music industry in 1999 with the acquisition of Hear Music, and the film industry in 2006 with the creation of Starbucks Entertainment. Starbucks Entertainment was one of the producers of the 2006 film ''[[Akeelah and the Bee]]''. Retail stores heavily advertised the film before its release. |
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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]]. |
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===Starbucks and Apple=== |
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Starbucks has entered into a partnership with [[Apple Inc.|Apple]] to collaborate on selling music as part of the coffeehouse experience. In October of 2006, Apple added a Starbucks Entertainment area to the [[iTunes Music Store]], selling similar music that appeared in Starbucks stores. In September of 2007 Apple announced that there would be wireless communication between Apple and Starbucks. Through the T-Mobile Wi-Fi, a paywall is opened up to allow any individual connecting to T-Mobile Hotspot access to the [[iTunes Music Store]] (regardless of whether he or she is a T-Mobile Hotspot subscriber). The partnership is primarily targeted at [[iPhone]], [[iPod Touch]], and [[Macbook]] users (although anyone with access to iTunes can take advantage of it). In addition, the iTunes Music Store will automatically detect the current and last 10 songs playing in a Starbucks and offer users connected to the store's wireless network the opportunity to download the tracks. This feature has been rolled out in [[Seattle]], [[New York City]], and the [[San Francisco Bay Area]], and will slowly be offered in limited markets during 2007-2008.<ref name=informationweek>[http://www.informationweek.com/news/showArticle.jhtml?articleID=201804347 Apple Builds Ecosystem With iPod Touch Screen]. ([[2007-09-05]]){{accessdate|2007-09-05}}</ref> During the fall of 2007 Starbucks also began to sell digital downloads of certain albums through iTunes. The buyer would buy the download at Starbucks, and enter the code on the download card at the iTunes Music Store, and then the entire album would immediately start downloading. From [[October 2]] to [[November 7]] [[2007]], Starbucks gave away 37 different songs for free download through iTunes as part of the "Song of the Day" promotion. Each day, baristas would give out download cards for a particular song which could be redeemed on iTunes. |
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==Competitors== |
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* [[Coffee Republic]] (UK) |
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* [[Costa Coffee]] (UK) |
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* [[Caribou Coffee]] |
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* [[Dunkin Donuts]] |
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* [[Green Mountain Coffee]] |
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* [[Peet's]] Coffee & Tea |
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==See also== |
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*[[List of coffeehouse chains]] |
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==Further reading== |
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–Michelli, Joseph A. (2006). The Starbucks experience: 5 principles for turning ordinary into extraordinary, 208 pages. |
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ISBN 0-07-147784-5. |
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–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. |
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==References== |
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{{reflist|2}} |
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==External links== |
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{{Commons|Starbucks}} |
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{{Starbucks}} |
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{{NASDAQ-100}} |
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[[Category:Coffee culture]] |
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[[Category:Companies established in 1971]] |
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[[Category:Coffee houses]] |
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[[Category:Fast-food chains of the United States]] |
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[[Category:Companies based in Seattle, Washington]] |
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[[Category:Starbucks|*]] |
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[[Category:Industrial Workers of the World]] |
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Revision as of 15:36, 17 April 2008
Company type | Public (Nasdaq: SBUX) |
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ISIN | US8552441094 |
Industry | Restaurants Retail Coffee and Tea Retail Beverages Entertainment |
Founded | In 1971 across from Pike Place Market in Seattle, Washington |
Founder | Gordon Bowker Jerry Baldwin Zev Siegl |
Headquarters | Seattle, Washington, USA |
Key people | Howard Schultz, Chairman, President and CEO Martin Coles, Chief Operating Officer James C. Alling, President, Starbucks International Peter Bocian, Chief Financial Officer |
Products | Whole Bean Coffee Boxed Tea Made-to-order beverages Bottled beverages Baked Goods Merchandise Frappuccino beverages |
Revenue | US$9.411 billion (2007) |
US$1.053 billion (2007) | |
US$672.64 million (2007) | |
Total assets | US$5.343 billion (2007) |
Total equity | US$2.284 billion (2007) |
Number of employees | 172,000 (Dec '07) |
Subsidiaries | Starbucks Coffee Company Tazo Tea Company Seattle's Best Coffee Torrefazione Italia Hear Music Ethos Water |
Website | Starbucks.com |
Starbucks Corporation (Nasdaq: SBUX) is a transnational coffee and coffeehouse chain company based in the United States. Starbucks is the largest coffeehouse company in the world,[1] with 15,011 stores in 44 countries.[2] 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 these 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's founding in Seattle, Washington, as a local coffee bean roaster and retailer, Starbucks has expanded rapidly. In the 1990s, the company was opening a new store every workday, a pace that continued into the 2000s. Domestic growth has since slowed, although the company continues to expand in foreign markets and is opening 7 stores a day worldwide. The first location outside of the U.S. and Canada was established in 1996, and they now constitute almost one third of Starbucks' stores.[3] As of November 2007, Starbucks had 8,505 company-owned outlets worldwide: 6,793 of them in the United States and 1,712 in other countries and U.S. territories. In addition, the company has 6,506 joint-venture and licensed outlets, 3,891 of them in the United States and 2,615 in other countries and U.S. territories. This brings the total locations (as of November 2007) to 15,011 worldwide.[2] Starbucks can be found in many popular grocery chains in the U.S. and Canada, as well as in many airports. Starbucks was recently ranked number fifteen on the U.S. Environmental Protection Agency's list of Top 25 Green Power Partners for purchases of renewable energy.[4]
Starbucks' corporate headquarters are in Seattle, Washington, United States. As of January 2008, the members of the company's board of directors are Howard Schultz (Chair), Barbara Bass, Howard Behar, Bill Bradley, Mellody Hobson, Olden Lee, James Shennan, Jr., Javier Teruel, Myron Ullman, III, and Craig Weatherup.
History
The original Starbucks was opened 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, 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. To them, coffee was something to be prepared in the home. Certain that there was much money to be made selling drinks to on-the-go Americans, 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 today). 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, Canada (which now has more locations than anywhere in the world)[citation needed] and Chicago, Illinois, United States that same year. At the time of its initial public offering on the stock market in 1992, Starbucks had grown to 165 outlets.
The first Starbucks location outside of North America opened in Tokyo 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 its stores as Starbucks. By November 2005, London had more outlets than Manhattan,[5] a sign of Starbucks becoming an international brand.
In 1999, Starbucks experimented with eateries in the San Francisco Bay area through a restaurant chain called Circadia.[6] These restaurants were soon "outed" as Starbucks establishments and converted to Starbucks cafes.
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 representatives have been quoted as saying they will convert the Diedrich Coffee and Coffee People locations to Starbucks stores.[7][8]
Starbucks' chairman, Howard Schultz, has talked about making sure growth doesn't dilute the company's culture [9] and the common goal of the company's leadership to act like a small company.
In January 2008, Chairman Howard Schultz resumed his role as Chief Executive Officer, replacing Jim Donald, who had succeeded Schultz in 2000. Schultz's principal challenge is 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. [10] On January 31, 2008, Schultz announced that Starbucks would discontinue its warm breakfast sandwich products, originally scheduled to launch nationwide in 2008, in order to refocus the brand on all things coffee.
As Starbucks often tests new products as part of its ongoing innovation and transformation, Starbucks started testing selling an 8 oz "short" brewed coffee for $1 and giving free refills on all brewed coffee. This test was limited to the greater Seattle market, with no plans for expansion to national markets. Per an internal email this program was cancelled in late March 2008. The normal price for a short brewed coffee at Starbucks is about $1.50, when Dunkin' Donuts 10 ounce coffee runs for $1.39 and McDonalds' 12 ounce premium coffee is $1.07. [11]
In March 2008, Schultz made several announcements to Starbucks shareholders. Shultz introduced Starbucks' "state of the art espresso system",,[12] the Thermoplan AG manufactured Mastrena, which will replace the Verismo 801. Starbucks also announced that the company hopes to enter the energy drink market and introduce a customer reward program. Pre-ground beans will also no longer be sold, in order that the additional grinding of all whole bean coffee will "bring aroma, romance and theater" to American stores. [13] The company also announced the recent acquisition of The Coffee Equipment Company,[14] the manufacturer of the Clover Brewing System. They are currently test marketing this unique "fresh-pressed" coffee system at six Starbucks locations, three in Seattle, and three in Boston.[15]
Products
Starbucks serves a variety of beverages including brewed coffee, hot chocolate, espresso, teas, and Frappuccino. Also available are bottled beverages including Naked Juice, Ethos water, San Pellegrino, Izze soda, and Horizon Organic Milk.
Cappuccinos, and all other beverages with steamed-milk and/or foam can be customized to order with pumps of flavored syrups, reasonable temperature changes and additional espresso shots. Starbucks also offers blended beverages, such as the "Frappuccino Blended Coffee", a flavored drink of coffee, milk, and sugar blended with ice. The name is a portmanteau of frappé and cappuccino and was introduced in 1995. Starbucks markets seasonal beverages as well, such as the Pumpkin Spice Latte (Thanksgiving), Gingerbread Latte, Peppermint Mocha, Eggnog Latte (Christmas), and Leprechaun Latte (St. Patrick's Day). There is also seasonal brewed coffee, like the "Christmas Blend" of whole bean coffee.
Starbucks supplements the beverage offerings with pastries, ready-to-eat salads and sandwiches, coffee merchandise, at-home brewing equipment, and whole bean coffee.
Starbucks sells a variety of ready-to-eat and drink products that are kosher, but due to business hours and sandwich products a Starbucks store cannot be certified 'kosher' according to Jewish law.[16]
Starbucks does not franchise with individuals within North America but does enter into licensing arrangements with some companies.[17] One example is of Starbucks store locations in airports, most of which are operated by HMSHost, owned by the Italian Autogrill group. Other licensed locations include grocery stores,theme parks, major food services corporations, university campuses and hospitals. In addition, Starbucks has partnered with Magic Johnson's Johnson Development Corporation to form Urban Coffee Opportunities, which opens retail locations in low-income urban areas.[18]
Staffing
There are usually from two to six partners (as Starbucks employees are called), all of them trained baristas, in each retail store at any one time. Black aprons labeled "Coffee Master" are worn by employees who have completed the Coffee Master course, which educates employees in not only the tasting, but also growing regions, roasting, and purchasing (including fair trade practices) aspects of the coffee industry.
In the United States and Canada Starbucks offers full benefits such as health, dental, and vision insurance, as well as stock-option grants and 401(k) with matching to employees who work an average of at least 20 hours per week. Each employee can receive a box of tea or a pound (0.45kg) of coffee each week if they choose. As of 2008, Starbucks was ranked by Fortune magazine as the 7th best company to work for in the United States, up from 16th in 2007. In 2006 and 2005 it was ranked 29th and 11th, respectively.[19] Starbucks was also voted as one of the top ten UK workplaces by the Financial Times in 2007.
"The Third Place"
Starbucks envisions local outlets as a "third place" (besides home and work) to spend time, and store design is intended to achieve this. The café section of the store is often outfitted with stuffed chairs and tables with hard-backed chairs. Most stores provide free electricity for customers, and many stores also provide wireless internet access (provided in American stores by AT&T[20] and in Canadian stores by Bell Mobility).[21]
The company is noted for its non-smoking policy at almost all of its outlets, despite predictions that this would never succeed in markets such as Germany, which used to have few restrictions on smoking. This has changed in 2007 with many German states issuing smoking bans for restaurants and bars. Outlets in Vienna and Mexico City, which have smoking rooms separated by double doors from the coffee shop itself, and a smoking room upstairs in the Largo do Senado, Macau, branch are the closest the company has come to making exceptions. According to the company, the smoking ban is to ensure that the coffee aroma is not adulterated. The company also asks its employees to refrain from wearing strong perfumes for similar reasons.[22] Starbucks generally does not prohibit smoking in outside seating areas, unless required by local codes.
International operations
Stores are now found in Australia, Austria, Bahamas, Bahrain, Brazil, Canada, Chile, China (including Hong Kong and Macau), Cyprus, Czech Republic, Denmark, Dominican Republic, Egypt, France, Germany, Greece, India, Indonesia, Iraq, Ireland, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, Netherlands, New Zealand, Oman, Peru, Philippines, Puerto Rico, Qatar, Romania, Russia,[23] Saudi Arabia, Singapore, South Korea, Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, and United Kingdom.
New stores will be opened in Belgium,[24] Argentina,[25] Bulgaria,[26] Colombia,[27] Hungary,[28] India, Iraq, Morocco, Poland,[29] Portugal,[30] Serbia, South Africa, and Venezuela [31].
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.[32]
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.[33]
International names include:
- Arabic-speaking countries: ستاربكس (transliteration: stārbaks)
- China, Hong Kong, Taiwan: 星巴克 Pinyin: xīngbākè (星 xīng means "star", while 巴bā 克kè 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[34] (added the French word to avoid controversy with local language politics)
- Thailand: สตาร์บัคส์ IPA: [sǒtāːbākʰō]
Logo
The logo is a "twin-tailed siren" (the siren of Greek mythology).[35] 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, 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, 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, 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 to the siren's bare breasts. In September 2006, an elementary school principal in Kent, Washington reportedly asked teachers to "cover up" the mermaid on the retro cups.[35] In early April 2008 Starbucks introduced a modified version of its original brown logo on hot beverage cups and holding sleeves with the 'Back to Basics' campaign. The modified version features hair covering the nipples of the siren.
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 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 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.[36]
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.[37]
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.[38]
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.[39]
Criticism and controversy
Starbucks has come to be regarded by some, particularly in the global justice movement, as symbolic of the problems posed by globalization. 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. Although no organization claimed responsibility for the vandalism, the anarchist circle-A symbol was spray-painted on several stores.[40]
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".[41][42][43][44]
Anti-competitive tactics
Some of the methods Starbucks has used to expand and maintain their dominant market position, such as buying out competitors' leases, acquiring independent coffee shops and converting them into Starbucks stores, and clustering several locations in a small geographical area (i.e., saturating the market), have been labeled anti-competitive by critics.[45] For example, Starbucks fueled its initial expansion into the UK market with a buyout of a major potential competitor (the 49 outlet, UK-based Seattle Coffee Company), 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.[46]
Labor disputes
Since 2004, workers at seven Starbucks stores in New York City have joined the Industrial Workers of the World (IWW) as the Starbucks Workers Union.[47]
According to a Starbucks Union press release, since then, the union membership has begun expanding to Chicago and Maryland.[48] 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.[49][50][51] 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, Great Britain and New Zealand, as well as U.S. cities including New York, Chicago, Minneapolis and San Francisco,[52] to protest the firing of five Starbucks Workers Union organizers by Starbucks and to demand their reinstatement.
Some Starbucks baristas in Canada,[53] Australia and New Zealand,[54] and the United States[55] 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.[47]
A Starbucks strike occurred in Auckland, New Zealand, on November 23, 2005.[54] 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.[56]
According to Starbucks Chairman Howard Schulz, "If they had faith in me and my motives, they wouldn't need a union." According to The Seattle Times, "The International Union of Operating Engineers Local 286 had trouble with Starbucks at its Kent roasting plant, where the union no longer represents workers".[47]
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 supervisors were granted a portion of tips, which violates state labor laws. The Company plans to appeal. Similarly, an 18 year-old barista in Chestnut Hill, MA has just filed another suit with regards to the tipping policy. Massachusetts law also states that managers may not get a cut of tips.[57][58] A similar lawsuit was also filed in Minnesota on March 27th, 2008. [59]
Coffee bean market
In 2000, the company introduced a line of fair trade products.[60]
Of the approximately 136,000 tonnes (300 million pounds) of coffee Starbucks purchased in 2006, about 6 percent was certified as fair trade.[61]
According to Starbucks, they purchased 2,180 tonnes (4.8 million pounds) of Certified Fair Trade coffee in fiscal year 2004 and 5,220 tonnes (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,[62] 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 by saying:
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. However, fair trade certification can cost US$20,000 to US$30,000[citation needed], and many growers are unwilling or unable to pay for certification[citation needed].
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, $1.20 per pound ($2.64kg) for high-quality coffee beans.[63] The is in comparison to commodity prices which were as low as 50-60 cents in 2003-2004 [64]
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 $1.80USD bottle sold ($.10 per unit in Canada) is used to fund clean water projects in under-developed areas. Although sales of Ethos water has raised over $4,000,000 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 Starbucks brand and the vast majority of the sale price (over 94%) does not support clean-water projects.[65] [66] 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.[67] Starbucks has since redesigned the American version of the Ethos water bottles, stating the amount of money donated per bottle in the description.
Recycled paper cups
In 2006, Starbucks introduced cups made with 10 percent recycled material. With 1.5 billion cups used annually in the United States at that time, the change was estimated to save approximately five million pounds of virgin tree fiber a year. Prior to the announcement, Starbucks used recycled paper into its cardboard cup sleeves, napkins, and cardboard carriers. A major obstacle for the recycled paper cup was that recycled content had never before been used in direct contact with food, especially not with steaming hot beverages. Although permission was not required, Starbucks and its pulp manufacturer, the Mississippi River Corporation, decided to seek Food and Drug Administration approval for the new cups. Had Starbucks not bothered to get F.D.A. approval, the cup development process would have taken only three months instead of more than two years. Starbucks said it was the first time that a national food chain had incorporated recycled material into packaging that comes into direct contact with food or beverages, but critics claim that the company should be doing much more to protect the environment.[68][69]
Other ventures
Starbucks entered the music industry in 1999 with the acquisition of Hear Music, and the film industry in 2006 with the creation of Starbucks Entertainment. Starbucks Entertainment was one of the producers of the 2006 film Akeelah and the Bee. Retail stores heavily advertised the film before its release.
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.
Starbucks and Apple
Starbucks has entered into a partnership with Apple to collaborate on selling music as part of the coffeehouse experience. In October of 2006, Apple added a Starbucks Entertainment area to the iTunes Music Store, selling similar music that appeared in Starbucks stores. In September of 2007 Apple announced that there would be wireless communication between Apple and Starbucks. Through the T-Mobile Wi-Fi, a paywall is opened up to allow any individual connecting to T-Mobile Hotspot access to the iTunes Music Store (regardless of whether he or she is a T-Mobile Hotspot subscriber). The partnership is primarily targeted at iPhone, iPod Touch, and Macbook users (although anyone with access to iTunes can take advantage of it). In addition, the iTunes Music Store will automatically detect the current and last 10 songs playing in a Starbucks and offer users connected to the store's wireless network the opportunity to download the tracks. This feature has been rolled out in Seattle, New York City, and the San Francisco Bay Area, and will slowly be offered in limited markets during 2007-2008.[70] During the fall of 2007 Starbucks also began to sell digital downloads of certain albums through iTunes. The buyer would buy the download at Starbucks, and enter the code on the download card at the iTunes Music Store, and then the entire album would immediately start downloading. From October 2 to November 7 2007, Starbucks gave away 37 different songs for free download through iTunes as part of the "Song of the Day" promotion. Each day, baristas would give out download cards for a particular song which could be redeemed on iTunes.
Competitors
- Coffee Republic (UK)
- Costa Coffee (UK)
- Caribou Coffee
- Dunkin Donuts
- Green Mountain Coffee
- Peet's Coffee & Tea
See also
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.
References
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- ^ a b Starbucks Company Fact Sheet. URL last accessed March 17, 2007.
- ^ Starbucks Company Profile
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About 6 per cent of Starbucks' coffee (about 18 million pounds) was certified as fair trade in 2006. The company buys almost 300 million pounds of coffee a year.
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