The coffee world has a plethora of coffee roasters and providers, yet the ubiquitous Starbucks coffee is known the world around. But does Starbucks roast its own coffee or does it source from 3rd-party coffee roasters, and what impact is that having on the world of coffee?
At first glance, the Starbuck’s story seems rather straightforward – the company sources coffee beans from all over the world, roasts them, and serves it in its over 35,000 stores. However, according to the company’s website, Starbucks only roasts fewer than 10% of its coffee beans in-house. The rest of the coffee beans that the company serves come from 3rd-party roasters. In April 2020, Starbucks announced that they had cut ties with their last owned roaster, pending their full exit from the coffee roasting process.
Green coffee bean sourcing experts have noted that Starbucks’ move away from roasting their own beans has had a significant effect on the coffee industry. Philip Koehler, a green-coffee bean expert, observes that ‘at a time when the specialty coffee movement is really gaining momentum…the decoupling of the buying and roasting processes is having a huge effect’. He notes that without Starbucks’ presence in the roasting industry, the quality of other roasters’ beans have improved significantly due to the competition.
In addition, Starbucks’s move away has allowed the company to move away from its traditional Italian-style roasts and introduce more interesting variations in its menu. Its partnerships with 3rd-party roasters also allow it to provide its customers with exclusive, speciality beans that they cannot find anywhere else. Lastly, by partnering with 3rd-party roasters, Starbucks can better control the quality and consistency of its coffee, while still allowing its roasting partners to put their own spin on the Starbucks recipes.
Despite its move away from roasting, Starbucks still has a big impact on the specialty coffee industry. It has popularized specialty coffee drinks and brought in new customers to the world of coffee. Moreover, Starbucks is known for improving labor standards, sustainability and ethics in its coffee production, making it a force for good in the industry. Andrew Hetzel, one of the world’s leading coffee quality and sustainable sourcing experts, notes that ‘Starbucks has been very conscientious and serious about these topics and its commitment is… influencing the whole industry’.
In conclusion, while Starbucks no longer roasts its own coffee, its move away from the roasting business has not had a significant negative impact on the industry. Rather, it has opened up opportunities for other roasters and allowed customers to sample more interesting and unique variations on the Starbucks coffee recipes. Ultimately, it is clear that even without roasting its own coffee, Starbucks is still making a big impact on the world of specialty coffee.
Impact on other companies
By outsourcing its green coffee bean purchasing and roasting processes, Starbucks is also affecting companies that focus solely on roasting. As the company does not have its own roasting plants, this leaves smaller companies with more opportunities to enter the specialty coffee market. Moreover, since Starbucks no longer needs its own roasters, the resources previously allocated to this part of the process can be used to further the company’s mission of sustainability and quality. As a result, these smaller roasting companies are able to produce more high-quality beans and offer more interesting variations on traditional Starbucks coffees.
Furthermore, Starbucks’ decision to outsource its roasting has made competition more intense in the industry. This means that roasters must continually compare their processes and products to Starbucks’ consistent quality standards. This ensures that they are producing the best quality and freshest coffee, something the company has become known for.
Finally, Starbucks’ move away from roasting and into 3rd-party partnerships has enabled other companies to benefit from their global presence. Many roasting companies are now affiliated with the company and selling coffee at Starbucks outlets all around the world. This allows them to tap into Starbucks’ enormous customer base and increase their sales, as well as develop their own customer base. This is a major benefit for these small companies as it allows them to gain more exposure and market their coffee on a much larger scale than they would otherwise be able to.
Impact on consumers
By relying on 3rd-party coffee roasters, Starbucks has been able to diversify its coffee offerings and offer its customers a wider, more interesting range of options. This means that customers can now access a variety of different flavour profiles, as well as a wide selection of speciality beans that would not be available at a Starbucks store if the company did its own roasting.
Moreover, this move has also enabled Starbucks to retain customer loyalty due to the consistent quality of their coffee. Through outsourcing their roasting process, the company is able to ensure the quality and consistency of its coffees across all of its stores. This means that customers can be assured that the coffee they receive will be of the same high-quality, no matter which Starbucks store they visit.
Furthermore, Starbucks’ move away from roasting has enabled it to improve lower prices for its customers. By sourcing coffee from 3rd-party roasters and not having to handle the additional cost of roasting its own beans, the company can offer customers a more affordable cup of coffee.
Impact on Communities
Starbuck’s move away from roasting its own beans has enabled it to further its commitment to sustainability and ethical sourcing. By relying more heavily on 3rd-party partners that must meet their rigorous sustainability and ethical standards, Starbucks can ensure that its production processes are in-line with its corporate values.
Moreover, by relying on third-party roasters, Starbucks is helping support local coffee-growing communities across the world. By partnering with local roasters, Starbucks is able to support the farmers and communities that provide the coffee that the company sells. This, in turn, positively impacts the development of these communities and helps them to thrive.
In addition, Starbucks’ move away from roasting has enabled the company to support ethical labour practices in the coffee industry. By outsourcing the roasting process and relying on suppliers that must adhere to strict labor standards, Starbucks can ensure that the coffee it serves is produced in a safe and ethical environment.
Impact on Environment
The move away from roasting has also enabled Starbucks to reduce its environmental footprint. By relying on third-party partners that specialize in sustainability, the company can ensure that the beans it sources are grown with sustainable methods. This means that minimal waste is produced and no harmful chemicals are used in the production of the coffee.
Moreover, by moving away from roasting, Starbucks can reduce its energy consumption by not needing to use large roasting machines. In doing so, the company is able to further reduce its carbon footprint and decrease its overall energy usage.
Finally, Starbucks’ move away from roasting its own beans has enabled it to focus more on improving its packaging. By relying more heavily on 3rd-party roasters, the company can focus on packaging its beans in sustainable and compostable materials. This reduces the amount of plastic and other materials that go into waste and helps Starbucks to reduce its environmental impact.
