From humble beginnings…
Starbucks is one of the world’s most iconic brand names, yet its origins remain largely unknown. The story of how this ubiquitous and beloved coffee-culture giant gained its name dates back to 1971. It all began in the historic Queen Anne neighborhood of Seattle, Washington when three friends united to open a store to provide quality, hand-picked beans to local coffee-lovers. With their unique selection and passionate, knowledgeable baristas, they quickly gained a loyal following and established themselves as local favorites.
In search of an appropriate and memorable name for their new business venture, the trio delved into literature, mythology, and coastal geography. After much deliberation, the idea of naming their store “Starbucks” was born, a combination of the nautical star motif of the local marine culture, and of the novel Moby Dick – specifically, the novel’s first mate character, “Starbuck.”
Forbes magazine’s Vice President and Editor Janet Lowder comments “Settling on a name for a business can be a challenge, but the trio behind Starbucks were brilliant in conceptualizing what their store should be, and a name that resonated with their chosen aesthetic.”
According to Robert Spector, author of The Starbucks Experience, the name capture “the seafaring tradition of the early coffee traders and the romance of the high seas.” This ethos guided everything from the design of the first store to the “siren” logo and has proven to be a hugely successful branding strategy since.
The Rise of the Brand
When the first store opened its doors, the Starbucks of today seemed unimaginable (we’re talking about 1971 here!). Initially set to sell beans mostly, it would take time for the Starbucks story to develop.
That said, it didn’t take long for the three entrepreneurs to realize that their customers wanted something more than just beans; they wanted the opportunity to enjoy coffee in a cozy atmosphere, so they started to serve espresso-based beverages. This move helped them successfully forge a unique relationship with their customers, sparking interest and loyalty.
The names of the future outlets were inspired by Mount Rainier, the Alki beach, and a series of other iconic landmarks, bringing to life the Pacific Ocean spirit that is now intertwined with the brand’s DNA.
The Starbucks of Today
Today, Starbucks has become a worldwide phenomenon, with more than 31,000 stores in 79 countries. Last year alone, the company registered net revenues of over $26 billion USD.
The brand has kept its focus on coffee, as well as expanding its product range as customers have evolved. Coffee drinkers now have access to a new environment for coffee, paired with other drinks and snacks. Starbucks’ employees make sure that each store is a pleasant and inviting space, where customers can start their day, recharge in the afternoon, and socialize with friends.
This is the actual ambition of each of us behind the Starbucks brand; to create a sense of community and create the best coffee experience possible.
“We’re seeing a transformation,” says Howard Schultz, Starbucks Chairman and CEO. “We are seeing more and more people looking for places to connect, to be inspired. Your local Starbucks, especially in the mornings and afternoons, has become a ‘third place,’ between home and work. We’re very proud that people have chosen Starbucks to be that third place.”
The Impact of Social Media
The rise of social media has been a major driver in the proliferation of the Starbucks brand. With an ever increasing digital presence and an estimated 59 million Instagram followers, Starbucks continues to inspire customers and develop relationships with them almost daily.
It is an undeniable fact that Starbucks has probably been one of the biggest beneficiaries of this technology, turning its brand into a true global phenomenon.
According to the company, it is their commitment to giving each customer a unique experience that drives their success. Social media has greatly enhanced this goal, providing the ability to communicate with customers directly and respond to their needs.
Making a Difference
Starbucks has long stood for something more than just providing high-quality and sustainable coffees.
Today the company continues to create a ‘connective experience’ and generate immense value for the communities that it serves. Starbucks has created jobs, invested in many educational and environmental initiatives, opened a variety of programs to improve the performance of small suppliers around the world, invested in technologies, and partnered with a number of social causes.
Starbucks has shown that it is more than just a company producing and selling products, it is an organization that believes in doing good and giving back to the community.
Environmental Responsibility
Starbucks’ commitment to sustainability has enabled the company to acquire a dedicated green-minded customer base.
The company has implemented a number of measures to reduce their environmental impact. They have worked to make all of their products recyclable and have implemented numerous recycling programs for their stores. They have also created energy-saving initiatives to reduce electricity consumption, as well as a partnership with British NGO Plastic Oceans to help reduce plastic waste.
Starbucks’ commitment to being environmentally responsible can be seen in the fact that all of their stores have achieved zero waste certification.
Continued Growth
Today, Starbucks remains the undisputed leader in the global coffee market, selling over 175 million items a week.
Having begun as a single store in Seattle, the company now has over 25,000 coffee shops in 66 countries. This success has been directly attributed to the creative minds that founded the company, as well as their brand name, inspired by literature and the Seattle marine culture.
Starbucks’ commitment to quality, customer service and sustainability, as well as its expansive product range, will continue to drive the company’s success in years to come.
The Social Impact
The success of Starbucks is not only reflected in the company’s financial performance but also in its commitment to making a positive impact in the communities where it operates.
One of the company’s key social initiatives is its partnership with the World Youth International, an organization that helps to promote education and employability for underprivileged youth in emerging economies.
Through this partnership, Starbucks provides technical and financial support to ensure that the World Youth International’s activities reach the intended beneficiaries and make a lasting impact.
In addition to this, Starbucks also provides a number of scholarships to university students around the world every year, enabling them to pursue a higher education.
Employee Development
Given the rapid growth of Starbucks, employee skill development has been a key focus for the company.
The company launched its College Achievement Plan at the end of 2014, with the belief that anyone with the drive and determination should have access to a college education regardless of their financial situation. Through this program, employees are offered full tuition reimbursement.
Through this program, Starbucks has also opened the Starbucks College program, which allows employees to study in-demand fields like business and technology, as well as other areas of study.
Conclusion
Starbucks’ success is a testament to its creative founders, the need for community felt by its customers and the impact of a powerful brand name.
Not only has the company revolutionized the coffee market, it has also expanded into other markets, providing quality services and products to millions of people around the world.
The company’s commitment to its customers, communities, and employees has enabled it to become a global leader in trading, innovation and sustainability.
Starbucks has come a long way from its humble beginnings in Seattle over four decades ago and it’s fascinating to look back and see how the brand found its name and how it has grown from strength to strength in pursuing its mission.
