Starbucks

Starbucks is the largest coffee chain in the world, with over 15,000 locations worldwide. Starbucks began as a local coffee retailer in Seattle, Washington, but soon expanded to introduce the coffee bar experience to mainstream America. Starbucks owns Seattle's Best Coffee and most Diedrich Coffee locations.

On April 29, 2009, Starbucks posted a 77-percent decline in second-quarter profits and a $25 million plunge in net income. In addition to the 6,000 layoffs and 300 store closings announced in January, the company plans another cutback: it will open only 20 new stores in 2009, which is less than a third the most recent estimate.The Seattle Times: Starbucks will cut 6,000 jobs, close 300 more stores (January 28, 2009) Bloomberg.com: Starbucks Profit Declines as Consumers Spend Less (April 29, 2009)

As the brand has grown, so has Starbucks' cultural influence. Starbucks' entertainment division distributes music through the Hear Music brand and film through Starbucks Entertainment. 2006's Akeelah And The Bee was the first film released under the Starbucks Entertainment banner.

Starbucks popularized the inventive, if confusing, naming convention "tall, grande, and venti" to replace "small, medium, and large." Starbucks uses the distinctive language to evoke images of Italian coffee bars and to solidify brand identity.Strategic Management: Thompson and Strickland Starbucks Case StudyPerhaps incidentally, Starbucks 20-ounce drink size is called venti, which, in Italian, means twenty.Poynter Online: Tall, Grande, Venti: The Doc Decaffeinates

On January 28, 2009, after announcing 6,000 planned layoffs, the company announced that—in another attempt to cut costs—it would no longer be brewing decaf coffee every half hour after noon. Decaf would still be available in the afternoon for customers who requested it, although the brewing reportedly takes about four minutes.USA Today: Starbucks cuts back on its decaf (January 28, 2009)

Starbucks also creates their unique coffee selections using the Clover brewing system. The Vacuum-Press technology, developed in 2007, brews each cup with precision. By digitally controlling both brewing time and temperature, the Clover brewing system regulates the brewing process to create the perfect cup of coffee. A 70-micron filter separates the grounds from the resulting coffee, ensuring a clean brew. There are rare beans that are used exclusively with the Clover brewing system and may only be available for a limited time as there are often interchanged with other unique seasonal flavors. http://www.starbucks.com/coffee/learn/clover

• Howard Schultz
  • Chairman
  • Co-founder: Maveron