Starbucks
| File:Starbucks logo.svg Logo since 2011 | |
| Company type | Public |
|---|---|
| Industry | Coffeehouse |
| Founded | March 30, 1971 in Seattle, Washington, U.S. |
| Founder | Jerry Baldwin, Zev Siegl, Gordon Bowker |
| Headquarters | Seattle, Washington , United States |
Area served | Worldwide (80 nations) |
Key people | Howard Schultz (former CEO), Kevin Johnson (CEO as of 2018) |
| Products | Coffee, espresso beverages, teas, juices, Frappuccinos, pastries, snacks |
Number of employees | Not specified |
| Website | www |
Starbucks Corporation is a global American coffeehouse and roastery reserve enterprise headquartered in Seattle, Washington. Established in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker at Seattle's Pike Place Market originally as a coffee bean wholesaler, it evolved into a café specializing in espresso beverages under the leadership of Howard Schultz. Schultz, who served as CEO from 1986 to 2000, spearheaded rapid growth throughout the U.S. West Coast.
By November 2022, Starbucks operated 35,711 outlets across 80 nations, including 15,873 stores in the United States. Of these, more than 8,900 were company-operated, with the remainder licensed. It stands as the largest coffeehouse chain worldwide and held the 120th position on the Fortune 500 and 303rd on the Forbes Global 2000 rankings in 2022.
Starbucks significantly influenced the rise of the second wave of coffee culture by broadening coffee consumption experiences. Its diverse offerings encompass hot and cold drinks, whole-bean and micro-ground coffee, espresso-based beverages, teas, juices, Frappuccinos, pastries, and snacks—many customized seasonally or regionally. Most locations provide complimentary Wi-Fi access. Despite facing criticism over certain business practices, Starbucks retains strong brand loyalty, commanding substantial market share and maintaining a high corporate valuation.
1970s
Starbucks commenced operations in Seattle, Washington on March 30, 1971. During its first decade, it functioned primarily as a retailer of premium coffee beans and related equipment within the local market. The company was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker, who had connected as students at the University of San Francisco. Drawing inspiration from coffee roasting pioneer Alfred Peet, their mission was to offer high-quality coffee beans and apparatus. The name "Starbucks" was selected after exploring terms beginning with "st," ultimately choosing "Starbuck," a character from the novel Moby-Dick.
Originally situated at 2000 Western Avenue until 1976, Starbucks relocated its store to 1912 Pike Place. During this era, Starbucks exclusively sold coffee beans without serving beverages. Initially sourcing green coffee beans from Peet's Coffee & Tea, Starbucks began training its own Roastmaster, Jim Reynolds, in 1973 after Peet stopped supplying beans.
1980s
In 1984, Starbucks' founding owners led by Jerry Baldwin purchased Peet's Coffee. By 1986, Starbucks had expanded to six stores in Seattle and introduced espresso coffee sales. The following year, former marketing director Howard Schultz acquired the company, rebranding his Il Giornale outlets under the Starbucks name and launching expansion efforts. That same year marked Starbucks' first ventures beyond Seattle with stores opening in Vancouver and Chicago. By 1989, Starbucks operated 46 locations across the Pacific Northwest and Midwest regions while roasting over annually.
1990s
During its June 1992 initial public offering, Starbucks (ticker symbol: SBUX) managed 140 stores generating revenue of US$73.5 million—an increase from US$1.3 million in 1987—and achieved a market capitalization of US$271 million. The IPO raised approximately US$25 million, allowing the company to double its number of outlets within two years.
In 1994, Starbucks acquired The Coffee Connection, securing ownership of the "Frappuccino" beverage brand which was subsequently launched under Starbucks in 1995. In 1999, Starbucks tested café-style eateries under the Circadia brand in the San Francisco Bay Area, later converting its Seattle Circadia location into a Café Starbucks. That year also saw Starbucks purchase Pasqua Coffee, a San Francisco-based chain operating nearly 60 stores across San Francisco, Los Angeles, and New York City.
2000s
In April 2003, Starbucks purchased Seattle's Best Coffee and Torrefazione Italia from AFC Enterprises for $72 million. While the acquisition added just 150 retail locations, the wholesale segment represented the more significant asset.
By mid-2003, Starbucks Japan operated 466 outlets and intended to open an additional 70 to 75 stores within the year, with plans to improve food selections by equipping every store with ovens.
Howard Behar held the position of president of Starbucks North America between 2005 and 2007.
In September 2006, Starbucks increased its regional footprint by acquiring most company-operated stores from competitor Diedrich Coffee, including Coffee People locations based in Oregon, excluding those situated at Portland International Airport.
At the start of 2008, Starbucks introduced My Starbucks Idea, a digital platform designed to gather customer feedback and ideas, fostering greater customer involvement and driving innovation.
In March 2008, Starbucks acquired Coffee Equipment Company, the creator of the Clover Brewing System, and began piloting this high-end coffee technology in select American cities.
During the economic downturn in July 2008, Starbucks announced it would shutter 600 underperforming stores and slow its U.S. expansion plans due to financial uncertainties. Additionally, approximately 1,000 non-retail roles were eliminated to enhance profitability.
That same month, Starbucks closed 61 out of its 84 Australian outlets after facing difficulties adapting to the local café culture—a strategic challenge noted by industry analysts.
By January 2009, Starbucks had further closed 300 poorly performing stores and cut around 7,000 positions. CEO Howard Schultz also reduced his salary as part of cost-saving efforts. Overall, from early 2008 through early 2009, the company eliminated roughly 18,400 jobs in the U.S. and closed 977 stores worldwide.
In August 2009, Ahold either rebranded or shut down 43 licensed Starbucks kiosks located in its Stop & Shop and Giant supermarket chains across the U.S., reflecting operational adjustments.
2010s
Starbucks surpassed $2 billion in annual Frappuccino sales by 2012.
The largest Starbucks in the United States opened at the University of Alabama's Ferguson Centre in August 2012.
By June 2013, calorie information was displayed on menus at all U.S. stores as part of a move toward greater transparency aligned with health-conscious consumer trends.
In July 2013, mobile app transactions accounted for over 10% of in-store purchases, highlighting growing digital engagement and adoption of mobile payments.
October 2013 saw the launch of the "Tweet-a-Coffee" campaign, which utilized Twitter to increase sales through digital gift card purchases; this initiative generated $180,000 in revenue and illustrated innovative marketing approaches.
January 2014 marked a strategic transition from a uniform global brand image to store designs tailored for local markets to improve customer experience through contextual relevance.
In May 2014, Starbucks withdrew from the Australian market due to persistent financial losses, selling its operations to the Withers Group—an outcome that underscored challenges in international market expansion.
July 2017 was notable as Starbucks acquired full ownership of its Chinese joint venture for $1.3 billion, consolidating control over a crucial growth region.
In March 2018, Starbucks began exploring blockchain technology aimed at increasing supply chain transparency and providing financial benefits for coffee growers in Costa Rica, Colombia, and Rwanda. This "bean to cup" initiative officially launched in 2019 using Microsoft Azure’s blockchain platform, demonstrating commitment to sustainable sourcing innovations.
April 2018 involved a widely publicized incident at a Philadelphia store where two men were arrested, triggering protests over racial discrimination. CEO Kevin Johnson issued an apology and declined prosecution; despite negative media attention, Starbucks continued to experience sales growth and maintained its full-year earnings forecast. The company temporarily closed around 8,000 locations nationwide for racial bias training to strengthen an inclusive workplace culture.
In June 2018, Starbucks announced plans to close approximately 150 underperforming urban stores in 2019—three times their usual annual closures—signaling a focus on optimizing their store portfolio.
By July 2019, Starbucks discontinued newspaper sales and removed grab-and-go kiosks offering snacks and whole-bean coffee bags as part of efforts to simplify store offerings.
In November 2019, Starbucks unveiled its largest store on Chicago’s Michigan Avenue staffed by about 200 employees—demonstrating continued investment in flagship locations to reinforce brand presence.
2020s
On March 20, 2020, Starbucks temporarily shut down all café-only locations across the United States for a two-week period in response to the COVID-19 crisis, continuing operations solely through drive-thru and delivery channels. The corporation pledged to compensate all employees for 30 days regardless of their attendance. The pandemic caused an overall sales decrease of 10%, with China experiencing a sharper decline of 50% due to stringent quarantine protocols.
By May 2020, Starbucks sought rent concessions from landlords as sales dropped significantly. In June, the company revealed plans to close 400 outlets in the US and Canada over an 18-month span, pivoting toward "convenience-driven" store formats that prioritize drive-through and curbside pickup services. Simultaneously, Starbucks intended to launch 300 new locations focused on carryout and mobile order fulfillment, integrating its app for prepayment and redesigning store interiors to enhance operational efficiency.
In December 2020, Starbucks set a goal to grow its global footprint from roughly 33,000 stores to nearly 55,000 by 2030. Bloomberg disclosed in July 2022 that Starbucks was considering divesting its UK business through the investment bank Houlihan Lokey.
After suspending operations amid Russia’s invasion of Ukraine, Starbucks sold its Russian outlets in August 2022 to rapper Timati; these stores were rebranded as "Stars Coffee," mirroring the original Starbucks design closely.
Howard Schultz resigned as CEO on October 1, 2022, with Laxman Narasimhan assuming the role. In March 2023, Narasimhan committed to working monthly shifts behind the counter to maintain a direct connection with customers and daily store functions.
In June 2023, a court mandated Starbucks to pay $25 million in punitive damages and $600,000 in compensatory damages after ruling that it had unlawfully terminated a regional manager in 2018 on racial grounds.
SouthRock Capital, which operates all Starbucks outlets in Brazil, filed for bankruptcy in October 2023 but continued business operations during restructuring efforts while closing underperforming locations.
On August 13, 2024, Starbucks announced Brian Niccol—previously CEO of Chipotle Mexican Grill since 2018—as Narasimhan’s successor.
In January 2025, Starbucks discontinued its 'open-door policy,' requiring customers to make purchases before accessing restrooms and seating areas. The following month, the company reduced its menu by approximately 30% to streamline operations and cut costs, eliminating less popular or complex items such as certain Frappuccino varieties and specialty lattes.
By July 2025, Starbucks mandated that corporate office staff return onsite four days per week starting in October. Employees choosing to resign were offered a one-time voluntary separation package that included monetary compensation.
American unionization efforts
In August 2021, employees at three Starbucks locations in Buffalo, New York launched unionization efforts by establishing the Starbucks Workers United committee affiliated with Workers United. Two additional stores initially joined but later withdrew their petitions to expedite voting at the original sites. During this period, Starbucks deployed senior executives—including its North America retail president—to engage with staff and held mandatory anti-union meetings. The company also temporarily closed some stores for renovations and increased staffing at one location; these measures drew criticism as attempts to suppress union activity, although Starbucks attributed them to pandemic-related staffing adjustments.
On November 9, Workers United filed petitions for union elections at three more Buffalo-area stores. The National Labor Relations Board (NLRB) distributed ballots on November 10 with votes counted on December 9. Despite Starbucks’ efforts to block the vote tallying process, the NLRB proceeded as planned. Inspired by Buffalo’s momentum, a Mesa, Arizona store petitioned for union recognition in November 2021 after firing a popular manager who had exposed anti-union tactics.
Starbucks temporarily shuttered two unionizing stores in October under the pretext of renovations unrelated to union activity. Starting that month, the company engaged Littler Mendelson—a law firm known for opposing unionization efforts. Starbucks requested NLRB approval for a collective vote covering all Buffalo locations; however, the board mandated separate elections per store. On December 9, 2021, Elmwood Avenue became the first unionized company-owned Starbucks store in the U.S., winning by a margin of 19–8; another nearby location voted against forming a union. Internationally, Starbucks has several unionized stores as well.
In December 2021, workers in the Boston area petitioned for union elections inspired by Buffalo’s success. By February 2022, Starbucks had terminated seven Memphis employees leading union campaigns and temporarily closed that store. In August 2022, the NLRB accused Starbucks of unlawfully withholding wage and benefit increases from union members and requested that CEO Howard Schultz or a board member publicly acknowledge this violation.
As of August 2022, unions had been certified at 211 U.S. locations. On November 17—the company’s busy Red Cup Day—over one hundred stores staged strikes demanding improved staffing levels, higher wages, and more predictable schedules.
Unionization campaigns are primarily coordinated through SBWU. Out of more than 9,000 U.S. outlets, fewer than three percent have voted to unionize since 2021; no collective bargaining agreements have been finalized yet. Starbucks alleges that Workers United has delayed negotiations, illegally recorded sessions without consent, refused face-to-face meetings, and filed over twenty-two unfair labor practice charges with the NLRB. Nevertheless, by March 2023 the NLRB dismissed these claims and ruled that Starbucks had refused to bargain in good faith.
On June 23, 2023, employees at unionized stores conducted strikes protesting Starbucks’ policies restricting in-store LGBT pride decorations.
Economic overview
| Region | Percentage |
|---|---|
| United States | 74% |
| China | 8% |
| Other regions | 18% |
| Year | Revenue | Net profit | Total assets | Average share price in US$ |
Workforce size |
|---|---|---|---|---|---|
| in million US$ | |||||
| 2005 | 6,369 | 494 | 3,514 | 11.01 | 115,000 |
| 2006 | 7,787 | 564 | 4,429 | 14.48 | 145,800 |
| 2007 | 9,412 | 673 | 5,344 | 11.60 | 172,000 |
| 2008 | 10,383 | 316 | 5,673 | 6.25 | 176,000 |
| 2009 | 9,775 | 391 | 5,577 | 6.46 | 142,000 |
| in billion US$ | |||||
| 2010 | 10.7 | 0.94 | 6.3 | 10.75 | 137,000 |
| 2011 | 11.7 | 1.2 | 7.3 | 15.55 | 149,000 |
| 2012 | 13.2 | 1.3 | 8.2 | 21.06 | 160,000 |
| 2013 | 14.8 | 0.008 | "11.5" | "27.70" | "182,000" |
| "2014" | "16.4" | "2.0" | "10.7" | "31.04" | "191,000" |
| "2015" | "19.1" | "2.7" | "12.4" | "43.94" | "238,000" |
| "2016" | "21.3" | "2.8" | "14.3" | "47.28" | "254,000" |
| "2017" | "22.3" | "2.8" | "14.3" | "48.65" | "277,000" |
| "2018" | "24.7" | "4.5" | "24.1" | "49.89" | "291,000" |
| "2019" | "26.5" | "3.5" | "19.2" | "72.20" | "346,000" |
| "2020" | "23.5" | "0.92" | "29.3" | "74.90" | "349,000" |
| "2021" | "29.0" | "4.1" | "31.3" | "103.10" | "383,000" |
| "2022" | "32.2" | "3.2" | "27.9" | "82.26" | "402,000" |
| "2023" | "35.9" | "4.1" | "29.4" | "96.71" | "381,000" |
| "2024" | "36.1" | "3.7" | "31.3" | "87.66" | "361,000" |
Coffee serving sizes
Short 8 US fl oz (237 mL) Original smaller hot beverage portion Tall 12 USOz[convert: unknown unit] Original larger size option Grande 16 USOz[convert: unknown unit] Italian term meaning "large" Venti 20 USOz[convert: unknown unit] - Hot26 USOz[convert: unknown unit] - Cold Italian for "twenty" Trenta 30 USOz[convert: unknown unit] Italian for "thirty"; offered for select iced beverages including cold brew and iced teas
| Designation | Volume | Description |
|---|
Reduced-calorie and sugar-free options
In 2008, Starbucks introduced a "skinny" product line aimed at health-conscious customers by offering lower-calorie and sugar-free alternatives that utilized skim milk along with natural or artificial sweeteners and sugar-free syrups to broaden its menu selections.
Plant-based milk alternatives
The company began offering non-dairy milk in its U.S locations in 1997 starting with soy milk. By 2007, Starbucks discontinued milk sourced from cows treated with rBGH and transitioned espresso drinks from whole milk to 2% reduced-fat milk.
Starbucks expanded its dairy-free options by adding coconut milk in 2015 and almond milk in 2016; nationally launching oat milk in January 2020 as well as distributing non-dairy creamers through a collaboration with Nestle SA. CEO Kevin Johnson emphasized the importance of plant-based milks in lowering carbon emissions as part of Starbucks’ environmental initiatives.
Despite increasing demand from vegan consumers and environmental advocates, Starbucks continued to charge an extra fee for dairy-free milk substitutions which led to activism including demonstrations led by PETA and shareholder pressure campaigns. Starbucks Canada confirmed that additional costs apply for customizations such as non-dairy milk options.
In December 2020, the company announced a nationwide introduction of Oatly oat milk across U.S stores beginning spring 2021. Responding to customer feedback and evolving market dynamics, Starbucks eliminated the surcharge for non-dairy milk modifications with the November 2024 holiday menu update under new CEO Brian Niccol—signaling a strategic move to boost customer satisfaction and strengthen market competitiveness.
Ethos water
Ethos water, which Starbucks acquired in 2003, is distributed throughout North America with a philanthropic goal: five cents from each $1.80 bottle sold in the U.S. (ten cents in Canada) is allocated to clean water initiatives in impoverished areas. While the brand has contributed over $6.2 million to these causes, it operates as a commercial enterprise, prompting criticism that its labeling might give consumers an inflated perception of its charitable contributions. The founders highlight Ethos’s mission to raise public consciousness and provide socially conscious buyers with a means to support causes simply by purchasing the product. Starbucks has since revised the bottle’s design to prominently display the donation amount per bottle.
Instant coffee
Starbucks introduced VIA "Ready Brew" instant coffee packets in March 2009, initially piloted in New York City, Seattle, Chicago, and London. By October 2009, the first varieties—Italian Roast and Colombia—were rolled out across the United States and Canada. To promote VIA, Starbucks conducted blind taste comparisons between instant and freshly brewed coffee, with many participants unable to tell the difference. Although this product line broadened Starbucks’ offerings, some financial experts voiced concerns that instant coffee might undermine the brand’s upscale reputation.
Coffee makers and single-use capsules
In September 2012, Starbucks unveiled the Verismo system, a home single-serve coffee machine utilizing sealed plastic pods, including a specialized "milk pod" designed for lattes. The Verismo line became widely available by November 2012, enabling consumers to brew espresso and regular coffee from pre-measured capsules based on the K-Fee pod technology.
Consumer Reports observed that the Verismo 580 required a rinse cycle between uses, which reduced convenience compared to rival machines. The device featured preset brewing options—coffee, espresso, and latte—but lacked strength customization. Additionally, Starbucks offered only eight coffee varieties alongside the milk pod.
As of December 31, 2020, Starbucks discontinued manufacturing its own K-Fee pods for Verismo machines; nonetheless, compatible pods remain available from third-party producers.
Alcoholic drinks
Starbucks ventured into alcoholic beverages starting in 2010 at select U.S. outlets. By August 2014, approximately 30 stores—including the Williamsburg location in Brooklyn—served beer and wine. In 2016, three Toronto stores expanded their menus to include alcohol paired with gourmet small plates such as bacon-wrapped dates and truffle mac and cheese.
The company selects venues for alcohol service based on community compatibility as well as the ability to accommodate extra seating and storage requirements.
Fruit juices, fruit beverages, and sodas
On November 10, 2011, Starbucks acquired Evolution Fresh, a juice company, for $30 million in cash with plans to establish a chain of juice bars by mid-2012 to compete with market leader Jamba Inc. The inaugural location opened in San Bernardino, California, with additional outlets planned for San Francisco early in 2013.
In March 2012, Starbucks launched iced Refresher drinks containing caffeine derived from green coffee extract, providing fruit-flavored beverages without traditional coffee taste. This caffeine is extracted by steeping green coffee beans in water.
By June 2014, Starbucks began testing "Fizzio," a line of carbonated sodas that require a proprietary dispensing machine.
Functional beverages
Starbucks broadened its range of products in January 2022 by introducing "Baya," an energy drink in a can that contains caffeine derived from coffee fruit.
In June 2024, the company unveiled Iced Energy, a fruit-flavored energy beverage available across US outlets, followed by a canned version released in March 2025.
By June 2025, Starbucks started experimenting with protein-enriched foam toppings, indicating ongoing development within its functional beverage segment.
Seasonal cups
Annually, from November through January, Starbucks issues holiday-themed merchandise that includes specially designed festive paper cups.
Barrel-aged coffee
In March 2017, Starbucks debuted limited-edition specialty beverages crafted from beans aged in whiskey barrels sourced from Washington state, produced at its Seattle roastery. These barrel-aged coffees were featured under the Starbucks Reserve collection, highlighting exclusive small-batch premium offerings.
Oleato coffee
Starbucks launched Oleato in February 2023, a series of coffee drinks blended with extra virgin olive oil, including options such as lattes, shaken espresso, and cold brews. Brady Brewer, Chief Marketing Officer, described Oleato as "one of the most significant launches in decades." This line was inspired by former CEO Howard Schultz’s personal routine and initially rolled out in Italy before expanding to Southern California, the UK, the Middle East, and Japan during 2023. Despite some consumer reports of digestive discomfort, Starbucks announced plans in January 2024 to extend Oleato nationwide across the US and into Canada, France, and China. Nevertheless, the Oleato collection was permanently removed from the menu in November 2024 as part of efforts to streamline offerings.
Starbucks card and loyalty program
In May 2008, Starbucks introduced a rewards program for registered Starbucks Card holders that included benefits such as complimentary Wi-Fi access, no extra charge for soy milk or flavored syrups, and free refills on brewed coffee, iced coffee, or tea. Customers accumulate stars with every purchase by presenting their rewards card or scanning it via the mobile app. These stars can be redeemed for complimentary beverages, add-ons, bakery goods, or select merchandise.
The company began beta testing a mobile app linked to the Starbucks Card in 2009 to facilitate stored value transactions. The fully launched mobile platform arrived in January 2011; by December of that year, mobile purchases surpassed 26 million transactions, demonstrating rapid adoption of digital payment methods within Starbucks’ business framework.
Electricity and Wi-Fi
Starbucks first introduced complimentary Wi-Fi in the United Kingdom in August 2002, initially requiring users to have a rewards card. By July 2010, free Wi-Fi access was extended to all stores across the United States and Canada to improve customer experience and interaction. In August 2010, Germany also gained free Wi-Fi service through BT Openzone partnerships.
In October 2012, Starbucks collaborated with Duracell Powermat to trial wireless charging tabletops at selected stores around Boston. The company joined the Power Matters Alliance board alongside Google and AT&T to advocate for a universal wireless charging standard aimed at creating a seamless smartphone charging environment.
In 2013, Starbucks switched its US Wi-Fi provider from AT&T to Google. By August 2016, German locations began featuring Qi wireless charging pads introduced by startup FluxPort, further advancing Starbucks’ integration of technology into its global operations and enhancing customer convenience.
Locations
Starbucks' global headquarters is situated at the Starbucks Center in Seattle, Washington, where 3,501 employees worked as of January 2015. This primary structure within the SODO district was originally a Sears mail order distribution facility until 1987.
In addition to their beverage and food offerings, numerous Starbucks outlets retail branded merchandise such as mugs and coffee presses. Certain "Starbucks Evenings" venues provide selections of beer, wine, and light snacks. Starbucks-branded items, including coffee, ice cream, and bottled cold beverages, are distributed worldwide through grocery retailers. The Starbucks Reserve initiative, launched in 2010, emphasizes single-origin coffees and upscale stores, initially aiming for 1,000 locations by 2017. Nevertheless, under CEO Kevin Johnson's leadership, this plan was reduced to between six and ten shops, with further growth contingent on their success. Presently, Starbucks operates six coffee roasteries featuring tasting rooms alongside 43 Reserve coffee bars.
As of February 2023, the company operated 36,171 stores in 83 countries, with 61% situated in the United States and China. In February 2024, Starbucks unveiled a new accessible store design beginning at its Union Market location in Washington, D.C., with plans to apply this design to all forthcoming company-owned outlets.
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Europe
Starbucks entered the United Kingdom in 1998 by acquiring Seattle Coffee Company’s chain of 56 stores for $83 million USD and subsequently rebranded all locations under the Starbucks name. In October 2002, Starbucks founded a coffee trading subsidiary in Lausanne, Switzerland to oversee green coffee procurement while maintaining other coffee-related operations in Seattle.
The company's first Russian outlet opened in September 2007 after registering its trademark there ten years earlier. However, following Russia’s invasion of Ukraine in 2022, Starbucks closed all Russian stores and transferred ownership of its local business and approximately 130 locations to a local manager. In addition to Russia’s entry into the market in that period, Starbucks expanded into Belgium, Bulgaria, the Czech Republic, and Portugal in 2008.
By April 2009 Starbucks made its debut in Poland. By February the following year it opened a store at Arlanda Airport in Sweden. June 2010 saw the launch of its first Budapest location. Norway’s retail market welcomed Starbucks in 2011 with the first branded store opening at Oslo Airport in early 2012.
In May 2012 Starbucks inaugurated its first Finnish café at Helsinki-Vantaa Airport. In August of the following year it opened outlets inside Salling department stores located in Aalborg and Aarhus in Denmark. April 2014 marked Starbucks’ entry into Azerbaijan’s Port Baku Mall followed by expansion into Guernsey’s main commercial district by November.
In April 2015 Kesko—Finland’s second-largest retailer—partnered with Starbucks to establish cafés adjacent to K-Citymarket hypermarkets; by mid-2017 three such stores operated near shopping centers around Helsinki.
CEO Howard Schultz announced Starbucks’ Italian market entry in February 2016 with the inaugural Milan store opening scheduled for September that year—bringing their presence to a total of seventy-eight countries. Bratislava’s Aupark mall welcomed Starbucks’ first Slovakian location in May of that year. In June 2018 Starbucks revealed plans for Serbia expansion; the initial store opened at Rajiceva Mall in April 2019. Malta became Starbucks’ eightieth country with a Valletta location opening in June of that year. The first Icelandic store launched in July 2025.
Asia
Starbucks inaugurated its first overseas outlet in July 1996 in Tokyo, Japan, achieving a milestone of 300 stores by October 2001. Bloomberg characterizes the Japanese market as attractive to young women who desire high-quality coffee served in a fashionable, smoke-free setting.
The Philippines became Starbucks' third international destination in December 1997, followed by Malaysia in December 1998. The company entered the Chinese market with a store located near Beijing's Forbidden City in 2000; however, this location ceased operations in 2007 due to cultural disputes.
From 2001 to 2003, Starbucks operated six stores in Israel but exited after incurring losses of US$6 million, attributed to operational difficulties and robust local competition.
In January 2011, Starbucks partnered strategically with Tata Coffee to establish a presence in India and procure beans from Tata's Kodagu estate. Although initially delayed, a 50:50 joint venture named Tata Starbucks was formed in January 2012. The first Starbucks store in India opened its doors in Mumbai on October 19, 2012.
Starbucks further extended its footprint into Vietnam with the launch of its first Ho Chi Minh City outlet in February 2013 and a Hanoi location in July 2014.
In South Korea, the company introduced the Siren Order mobile application in May 2014. This was followed by the rollout of the Mobile Order & Pay system starting in Portland, Oregon, in December 2014. The service expanded nationwide within South Korea by 2015 and became available to all customers by March 2018.
In September 2014, Starbucks acquired the remaining 60.5% ownership of Starbucks Coffee Japan for US$913.5 million, thereby gaining full ownership of its Japanese subsidiary.
By August 2015, Starbucks revealed plans to enter Cambodia’s capital, Phnom Penh, marking its sixteenth market within the China/Asia Pacific region. In December of the same year, two stores opened in Almaty, Kazakhstan.
December 2017 marked the debut of the Starbucks Reserve Roastery at HKRI Taikoo Hui in Shanghai—the only Reserve Roastery outside Seattle—underscoring the company’s premium offerings on a global scale.
In November 2020, Starbucks announced intentions to expand into Laos, targeting this emerging coffee-exporting nation.
Americas
Starbucks made its entrance into Latin America in September 2002 with its inaugural store located in Mexico City, growing to more than 500 outlets by 2016. The South American market was entered with a store opening in Lima, Peru, in August 2003, followed by expansions into Argentina and Brazil in 2008.
The company ventured into Central America starting with El Salvador in 2010 and then Costa Rica in 2012. In October 2012, Starbucks unveiled plans to open an additional 1,000 stores across the United States within five years. August 2013 saw Starbucks’ entry into Colombia through a joint venture with regional partners Alsea and Grupo Nutresa, utilizing an established Farmer Support Center in Manizales to aid local coffee producers. The first Colombian store launched in Bogotá in 2014, accompanied by plans for fifty more locations across major cities over five years.
By May 2014, Starbucks had outlined expansion into Bolivia and Panama and subsequently entered Trinidad and Tobago in 2016 with its initial store at South Park Mall in San Fernando. In November 2017, Starbucks debuted in Jamaica by opening its first outlet in Montego Bay and set a five-year plan to establish fifteen locations island-wide, including prominent venues such as Sangster International Airport and Kingston’s central business district.
Operations began in Uruguay in April 2018 with a store at Montevideo Shopping mall and ambitions to open around twelve cafes nationwide. Franchised outlets commenced operations in the Cayman Islands (August 2019) and Turks and Caicos Islands (October 2019). On April 25, 2023, Starbucks launched services in Guyana.
In April 2024, Starbucks announced upcoming market entries into Ecuador and Honduras slated for mid- and late-2024 respectively. The first Ecuadorian store opened on August 14, 2024, at Scala Shopping Mall in Quito, with intentions to establish four more cafes by the conclusion of 2025.
Australia
Starbucks made its debut in the Australian market in July 2000 with its inaugural store located in Sydney. After experiencing a sharp decline in performance in 2008, the company divested its remaining Australian outlets to the Withers family in 2014 and shifted towards a more measured growth approach.
By November 2022, Starbucks operated 59 stores throughout Australia, with the majority situated in New South Wales (23), Queensland (19), and Victoria (18). These locations are primarily found in urban centers such as Sydney, Melbourne, Brisbane, the Gold Coast, the Sunshine Coast, and Ballarat. Prior to shutting down 61 out of 85 stores in 2008, Starbucks had expanded into cities including Adelaide, Canberra, Hobart, and Wollongong.
Recent developments include plans to establish a restaurant in Toowoomba and the opening of its first store in Perth, Western Australia scheduled for October 23, 2024. Additionally, Starbucks aims to launch 11 more outlets by the conclusion of 2025, indicating revitalized investment and expansion efforts within Western Australia.
New Zealand
Starbucks has established several locations across New Zealand, steadily increasing its footprint within the region.
Africa
In May 2010, Starbucks collaborated with Southern Sun Hotels South Africa to offer its coffee at select Southern Sun and Tsonga Sun hotels, coinciding with the 2010 FIFA World Cup hosted in South Africa. Subsequently, in April 2016, following TASTE Holdings’ acquisition of licensing rights for South African operations, Starbucks inaugurated its first stores at Rosebank, Gauteng in Johannesburg and at the Mall of Africa. However, TASTE Holdings exited the food sector in 2019 and sold off its Starbucks outlets.
At sea
December 2010 marked Starbucks’ expansion into maritime venues through a partnership with Royal Caribbean International. The company launched its initial "Starbucks at sea" location aboard the Allure of the Seas, one of the world’s largest cruise ships.
Licensed and franchise operations
Starbucks broadens its international reach via licensing and franchising agreements. Independent operators include entities such as Ahold Delhaize, Barnes & Noble, Target Corporation, Albertsons, and Publix stores. Within EMEA markets, Starbucks predominantly employs a franchising strategy to open standalone stores rather than relying on licensing deals that place Starbucks kiosks inside existing retail environments.
Automation
In select locations, Starbucks integrates automation technology through touchscreen vending machines that offer up to 280 beverage options while engaging customers with interactive games during wait times. Although automation has the potential to reduce barista staffing needs, Starbucks emphasizes these machines as supplementary tools designed to enhance customer experience without replacing human interaction.
Unbranded stores
In 2009, Starbucks introduced several unbranded coffee shops in Seattle that operated without traditional logos or branding, aiming to create neighborhood coffeehouses "inspired by Starbucks." CEO Howard Schultz referred to these "stealth Starbucks" outlets as experimental "laboratories" for piloting new concepts. The first of these was 15th Avenue Coffee and Tea on Capitol Hill, which offered wine and beer alongside live entertainment. Another example is Roy Street Coffee and Tea. Despite some criticism labeling these efforts as "local-washing," these unbranded stores represent a deliberate strategy to diversify Starbucks’ market approach by targeting different customer demographics and testing alternative business models beyond the conventional Starbucks format.
Teavana
Starbucks made its initial foray into the tea industry in 1999 by acquiring the Tazo brand for $8.1 million. The company broadened its tea offerings in December 2012 through the $620 million purchase of Teavana. Unlike Tazo, Starbucks initially refrained from selling Teavana products within its stores, opting instead to grow Teavana’s footprint outside of traditional mall locations. Starting in January 2015, Starbucks began offering Teavana teas both as ready-to-drink beverages and packaged retail items inside its stores. In November 2017, Starbucks divested the Tazo brand to Unilever for $384 million to concentrate efforts on Teavana. Nevertheless, by early 2018, Starbucks shuttered all Teavana retail outlets, resulting in roughly 3,300 job losses and highlighting difficulties in achieving long-term growth through its tea ventures.
Corporate governance and identity
Howard Schultz led Starbucks as CEO from 1986 until 2000, after which Orin Smith took over and notably expanded the company’s fair trade coffee initiatives while driving revenues to $5 billion. Between 2005 and 2008, Jim Donald served as CEO, presiding over substantial profit increases. Schultz returned during the financial crisis of 2008, emphasizing expansion of market share, diversification of product lines, and strengthening corporate social responsibility commitments.
Kevin Johnson served as chief operating officer from 2015 to 2018 before becoming CEO in 2017. Myron E. Ullman was named chairman in 2018; both succeeded Schultz, who had held CEO and chairman roles from 2008 to 2017 and later became Chairman emeritus. Amid rising operational costs and unionization pressures, Schultz resumed the position of interim CEO in March 2022. Laxman Narasimhan was appointed CEO in September 2022 and officially took office in March 2023. In August 2024, Brian Niccol, previously CEO of Chipotle Mexican Grill, replaced Narasimhan with a starting compensation package including a $1.6 million salary and a $10 million bonus.
Starbucks’ governance faces ongoing challenges due to increasing input expenses and competition from budget-friendly competitors such as McDonald’s and Dunkin’ Donuts. In 2015, the company appointed its inaugural chief technology officer, Gerri Martin-Flickinger, to spearhead digital transformation efforts. Starbucks retains control over its supply chain by directly collaborating with coffee farmers, roasting beans internally, and overseeing distribution logistics. Its Coffee and Farmer Equity (C.A.F.E.) Practices mandate transparency regarding the share of wholesale prices that reaches the growers.
Under Niccol’s leadership, Starbucks introduced the 'Back to Starbucks' initiative focused on recapturing customer loyalty by streamlining the menu and reversing policies that previously allowed customers without purchases to occupy café seating in North America.
Ownership
Institutional investors hold the majority stake in Starbucks, owning approximately three-quarters of its shares. As of December 2023, the largest ten shareholders included prominent financial institutions such as:
- The Vanguard Group (9.53%)
- BlackRock (6.96%)
- State Street Corporation (4.09%)
- Geode Capital Management (2.02%)
- Morgan Stanley (2.00%)
- Bank of America (1.75%)
- Northern Trust (1.30%)
- Royal Bank of Canada (1.27%)
- JPMorgan Chase (1.21%)
- Norges Bank (1.14%)
Board of directors
As of October 2024, Starbucks' board of directors comprises prominent executives and leaders from various industries:
- Brian Niccol, serving as chair and CEO
- Richard Allison, previously CEO of Domino's Pizza
- Andrew Campion, Chief Operating Officer at Nike, Inc.
- Mellody Hobson, president and co-CEO of Ariel Investments
- Beth Ford, Chief Executive Officer of Land O'Lakes
- Jørgen Vig Knudstorp, executive chairman of LEGO Group
- Neal Mohan, CEO of YouTube
- Daniel Servitje, CEO of Grupo Bimbo
- Mike Sievert, CEO of T-Mobile US
- Wei Zhang, former President at Alibaba Pictures Group
- Howard Schultz, president and former CEO
Logo
Since its founding, Starbucks has utilized a twin-tailed siren as its emblem, embodying the brand’s identity. The original design drew inspiration from a detailed 16th-century Norse woodcut and was later simplified into a green symbol reflecting the founders’ connection to the University of San Francisco.
Over time, modifications included obscuring the siren’s nudity and cropping the fish tails by 1992. The current logo, adopted in 2011, emphasizes the siren alone in green, having removed the surrounding wordmark. The initial version remains on display at Starbucks’ headquarters in Seattle.
In certain regions such as Saudi Arabia, the company adapted its logo to align with cultural expectations by temporarily omitting the siren figure. Additionally, Starbucks has occasionally reintroduced its classic brown logo on cups to commemorate its heritage and significant business milestones. These uses have sparked minor controversy but ultimately reinforce the brand’s legacy.
Environmental practices
Starbucks initiated the "Grounds for your Garden" program in 1999, encouraging environmental responsibility by offering used coffee grounds for composting. Participation levels differ based on store location and regional policies.
In 2008, Starbucks was criticized for excessive water usage—approximately 23.4 million gallons daily—due to continuously running water taps at utensil rinse stations, a practice often mandated by food safety standards. By 2009, changes were implemented in U.S. and Canadian outlets, including installing push-button faucets and providing dedicated spoons for milk pitchers, resulting in water savings of up to 150 gallons per store each day.
In January 2020, Starbucks unveiled an ambitious sustainability goal to become a resource-positive company by 2030. The plan aims to halve carbon emissions, waste generation, and water consumption. Central strategies involve broadening plant-based food offerings, transitioning to reusable packaging solutions, investing in regenerative farming and reforestation projects, enhancing waste management systems, and advancing environmentally conscious operations across its global locations.
Recycling
In 2006, Starbucks introduced beverage cups containing 10% recycled paper, a pioneering move for food-contact items. Although the recycled content was considered minimal by some critics, the company received the National Recycling Coalition Recycling Works Award in 2005. By 2008, Starbucks recognized difficulties related to cup recyclability and the scarcity of recycling facilities in stores. To encourage the use of reusable cups, the company offered discounts and launched cup sleeves composed of 85% post-consumer recycled fiber.
During this timeframe, Starbucks also collaborated with Conservation International, pledging $7.5 million over three years to safeguard coffee-growing regions in Mexico and Indonesia—integrating environmental stewardship into its global business approach.
Plastic straw ban
On July 9, 2018, Starbucks CEO Kevin Johnson declared a worldwide prohibition on single-use plastic straws effective January 1, 2020, across all outlets to combat climate change, pollution, and threats to sea turtles. Frappuccino beverages would adopt straws crafted from sustainable materials such as paper or compostable plastics, while other cold drinks would be served with strawless lids that use 9% less plastic than previous designs. By late 2018, Starbucks had already removed single-use plastic straws in several markets including Europe, China, Canada, and various U.S. states. South Korea became the first nation to implement paper straws in every Starbucks location within its global network of 78 countries.
Reusable cups
As part of its sustainability agenda, Starbucks aims to cut waste by half by 2030. After initiating a reusable cup campaign in Vietnam in 2020, the effort expanded to Korea in 2021, promoting a shift away from disposable cups through social media outreach. Since April 2013, customers bringing their own reusable cups have been eligible for discounts. The COVID-19 pandemic temporarily suspended this program due to health concerns but it resumed in June 2021 with a contactless process designed to reduce shared contact points.
Starbucks is furthering its sustainable growth strategy by planning to eliminate disposable cups entirely in South Korea by 2025, bolstering its leadership position in environmental responsibility within the foodservice sector.
Farmer equity practices
Starbucks began formulating its corporate social responsibility framework in 1994 and joined forces with Conservation International (CI) to create and monitor its Coffee and Farmer Equity (C.A.F.E.) program. This initiative employs a comprehensive rating system featuring 249 criteria spanning economic transparency, social responsibility, and environmental stewardship. Farmers who achieve high scores receive premium payments. Social standards include mandatory minimum wage compliance, harassment-free workplaces, non-discrimination policies, and prohibition of child labor under age 14. Currently, Starbucks sources approximately 90% of its coffee from preferred suppliers certified under C.A.F.E., approaching its target of fully ethically sourced coffee through C.A.F.E. or equivalent certifications.
Nonetheless, some analysts question the program’s influence on business expansion and market power. Daniel Jaffee from Washington State University characterizes Starbucks’s C.A.F.E. initiatives as possible greenwashing efforts intended to enhance corporate reputation. Likewise, Marie-Christine Renard of Chapingo University observed that despite improved pricing through the CI-Starbucks-AMSA partnership in Chiapas, Mexico, producers still lacked access to critical knowledge necessary for improving coffee quality—underscoring difficulties in securing sustainable competitive advantage via such collaborations.
Fair trade
Starbucks introduced a range of fair trade products in 2000. By 2006, fair trade-certified coffee accounted for approximately 6% of its total coffee purchases, equating to around 18 million pounds out of an estimated 300 million pounds.[1] Various advocacy organizations called on Starbucks to expand its fair trade offerings.[2]
After a disagreement with Ethiopia, Starbucks committed to supporting and promoting Ethiopian coffees, acknowledging Ethiopia’s rights to designations such as Harrar and Sidamo to benefit local farmers.[3] In 2006, the company paid $1.42 per pound for coffee—over one-third above commodity market prices—while retail prices reached $10.99 per pound after expenses.[4] By 2013, Starbucks’ website featured only a single Ethiopian single-origin coffee.[5]
Starbucks is affiliated with the World Cocoa Foundation, although its efforts to reduce child labor within cocoa production have consistently missed targets.[6]
In 2019, the labor rights organization Fair World Project uncovered evidence of child slave labor within Starbucks’ Brazilian supply chain despite the company’s internal C.A.F.E. certification assertions to the contrary.[7] In 2022, Starbucks discontinued fair trade certification for its coffee, opting instead to conduct internal reviews.[8]
Food bank donations
Since 2010, Starbucks has partnered with Food Donation Connection to donate leftover pastries from U.S. stores to local food banks. In 2016, the company initiated a five-year strategy aimed at donating all unsold food from its approximately 7,600 U.S. company-operated outlets to food banks and pantries. Perishable goods are transported via refrigerated trucks through collaborations with Food Donation Connection and Feeding America. The FoodShare initiative targets providing up to 50 million meals within five years. By 2017, this program was active in ten markets, including New York City where Starbucks works alongside Feeding America and City Harvest to donate from 45 locations, with plans to extend this effort to all 305 stores in Manhattan. As of September 2019, participation had grown to cover 60% of stores, contributing toward the provision of 20 million meals.
Cage-free eggs
In 2008, Starbucks adopted an animal welfare policy prohibiting numerous inhumane practices such as hen confinement in cages. By the following year, it emphasized adherence to leading animal husbandry standards across North America. In 2015, Starbucks pledged to transition entirely to cage-free eggs by 2020; this commitment initially applied only to company-operated stores and excluded roughly 40% of licensed locations. The company reiterated its pledge in 2018 to source solely cage-free eggs and egg products worldwide in company-owned stores by the target year, including supplies for licensed partners in North America, highlighting its dedication to social responsibility and animal welfare principles.
Despite these pledges, organizations including World Animal Protection and Compassion in World Farming report little progress in animal welfare improvements since 2012. The Humane Society of the United States has indicated that Starbucks no longer meets criteria for a genuine cage-free commitment.
Hear Music
Established in 1990 as a music catalog enterprise with retail outlets in the San Francisco Bay Area, Hear Music was acquired by Starbucks in 1999. By 2002, it had produced an opera album for Starbucks featuring renowned performers such as Luciano Pavarotti. Hear Music signed its inaugural artist, Paul McCartney, in 2007, releasing his album Memory Almost Full exclusively through Starbucks locations. In 2006, Starbucks introduced Starbucks Entertainment, co-producing the film Akeelah and the Bee, which was promoted and retailed within Starbucks stores.
Starbucks was also criticized in Neil Young’s protest track "A Rock Star Bucks a Coffee Shop", which targeted the company's alleged use of genetically modified ingredients and its ties to Monsanto.
Upstanders
In September 2016, Starbucks launched "Upstanders," its first original content series aimed at inspiring audiences. This initiative featured podcasts, articles, and videos distributed through the Starbucks mobile application, website, and digital displays inside stores.
Films
In the 1999 movie Austin Powers: The Spy Who Shagged Me, Number 2 (Robert Wagner) informs Dr. Evil (Mike Myers) that while frozen, Virtucon invested in a firm that evolved into a large conglomerate.
The 2021 film Ghostbusters: Afterlife depicts Ray Stantz (Dan Aykroyd) explaining that after the Ghostbusters went out of business, Starbucks took over their firehouse headquarters on North Moore Street, converting it into a coffee shop before Winston Zeddemore (Ernie Hudson) bought it back.
Aeroplan
In Canada, Starbucks collaborates with Aeroplan to offer points to customers who link their Aeroplan and Starbucks accounts. Points are earned when users add funds to their Starbucks accounts.
Apple Inc.
Starbucks partners with Apple Inc. to enrich the "coffeehouse experience" by integrating music sales. Since 2006, Apple has maintained a Starbucks Entertainment section within the iTunes Store, showcasing music akin to that played in stores. In 2007, Starbucks introduced Wi-Fi access allowing customers to browse iTunes without logging in, targeting users of iPhone, iPod Touch, iPad, and MacBook. The iTunes Store can identify songs playing inside Starbucks locations and offers customers the option to download them; select stores also feature artist and track information on LCD screens. This service debuted in Seattle, New York City, and the San Francisco Bay Area between 2007 and 2008. Additionally, Starbucks sold digital albums via iTunes and promoted free song downloads through initiatives such as "Song of the Day" and the App Store's "Pick of the Week."
MSNBC
Beginning June 1, 2009, the MSNBC morning news show Morning Joe adopted the branding "brewed by Starbucks," incorporating the company’s logo into its presentation. Although hosts had previously consumed Starbucks coffee on air without sponsorship, this marked an official endorsement agreement. The collaboration drew mixed responses—viewed by some as a clever marketing strategy during economic challenges but by others as potentially compromising journalistic independence. This branding partnership concluded in August 2013.
Kraft Foods
In 1998, Starbucks collaborated with Kraft Foods to distribute Starbucks products through Mondelez grocery outlets. However, Starbucks later aimed to end this partnership, proposing a $750 million buyout to Kraft, citing inadequate marketing efforts and the growing popularity of single-serve coffee pods such as K-Cups. The initial contract confined Starbucks to packaging compatible solely with Kraft’s Tassimo brewing systems, restricting market expansion. Kraft declined the purchase proposal, but Starbucks proceeded to terminate the agreement independently. Subsequently, in November 2013, an arbitrator mandated Starbucks to compensate Mondelez International (a Kraft spin-off) with $2.8 billion for prematurely breaching the contract.
Arizona State University
In June 2014, Starbucks teamed up with Arizona State University (ASU) to provide employees in their junior and senior college years the chance to earn a bachelor’s degree through ASU’s online platform for approximately $23,000. Employees accepted into the program receive a scholarship covering 44% of tuition costs, while the remainder is paid by the student or through financial aid options. By April 2015, this initiative was broadened to include full tuition reimbursement for all qualifying part-time and full-time Starbucks employees across the United States. Tuition fees are reimbursed after each semester, allowing employees to better manage their educational expenses.
PepsiCo
In 2015, Starbucks entered into a partnership with PepsiCo to promote and distribute Starbucks-branded products throughout various Latin American countries, bolstering its global footprint and enhancing its portfolio of ready-to-drink beverages.
Spotify
In May 2015, Starbucks joined forces with music streaming platform Spotify, granting U.S.-based employees access to Spotify Premium subscriptions and incorporating curated playlists into store environments. This collaboration enhanced customer interaction and enriched the overall brand experience through digital co-branding.
Disney
On June 19, 2015, Starbucks inaugurated a store at Disney's Animal Kingdom on Discovery Island that featured environmentally friendly green straws in alignment with park sustainability guidelines. This establishment became the sixth Starbucks location within Walt Disney World, supplementing existing outlets at Magic Kingdom, Epcot, Disney's Hollywood Studios, and two locations in Disney Springs. Additional Starbucks stores operate at Disneyland, Disney California Adventure, Downtown Disney in Anaheim, and Disney Village at Disneyland Paris. While Downtown Disney and Disney Springs locations are directly managed by Starbucks, those inside the theme parks are operated by Disney.
Uber Eats
In December 2018, Starbucks broadened its collaboration with Uber Eats to offer beverage delivery services to customers in the United States, following previous rollouts in China.
Lyra Health Inc.
Starting April 6, 2020, Starbucks provided all eligible U.S. employees and their family members with access to up to 20 complimentary mental health therapy or coaching sessions annually. These offerings include in-person or virtual counseling as well as unlimited use of self-care applications through Lyra Health Inc.
Arla Foods
Starbucks’ line of ready-to-drink iced coffee beverages, distributed through retail outlets and supermarkets, is manufactured under license by the Danish-Swedish dairy cooperative Arla Foods.
Reviews and reception
Kevin Knox, who oversaw doughnut quality at Starbucks between 1987 and 1993, recounted that coffee expert and entrepreneur George Howell criticized Starbucks’ use of dark roasted beans in 1990, suggesting that such roasting concealed subtle flavor notes rather than enhancing them.
In March 2007, Consumer Reports placed Starbucks behind McDonald's Premium Roast, describing Starbucks coffee as "strong, but burnt and bitter." Advocates of third wave coffee have similarly criticized Starbucks for excessive bean roasting.
Starbucks responded by retraining its baristas and altering roasting techniques in 2010 to emphasize quality over volume. While these changes elevated coffee quality, they also resulted in slower service—a compromise noted by The Atlantic and Forbes.
A 2018 evaluation by Business Insider, involving 100 coffee experts, found that Starbucks’ standard menu items were often overly sweet but recognized marked improvements in iced coffee and nitro cold brew selections. Experts also pointed out that Starbucks Reserve outlets provide a noticeably higher caliber of coffee compared to regular stores.
Response to Russian invasion of Ukraine
In the wake of the 2022 Russian invasion of Ukraine, Starbucks encountered calls to cease its Russian operations. CEO Kevin Johnson clarified on March 4 that although Starbucks does not operate in Ukraine, it has 130 licensed locations in Russia managed by a licensed partner. Johnson condemned the military action and pledged to donate any royalties earned from Russian operations to humanitarian efforts supporting Ukraine.
Racial controversies
Starbucks has been subject to numerous allegations regarding racial discrimination. In 1994, the company settled a lawsuit after employees claimed termination based on race, age, and gender, including an incident involving a racial slur used by a regional vice president. In 2008, a former African American engineer filed a suit alleging workplace discrimination and harassment; Starbucks reached a settlement in 2009. The Equal Employment Opportunity Commission accused the company of biased promotion practices from 2007 to 2011, asserting that minority employees were promoted less frequently than anticipated.
The 2015 "Race Together" initiative aimed at encouraging conversations about race received widespread criticism. In 2020, employees were prohibited from displaying Black Lives Matter symbols at work. Following several episodes of racial bias at individual stores, Starbucks closed approximately 8,000 locations for one day in 2018 to conduct racial bias training.
Noteworthy incidents include a 2014 event in Milwaukee where a Starbucks employee’s call resulted in police shooting an African American man, prompting protests. In 2018, two black men were arrested at a Philadelphia Starbucks after staff summoned police when they refused to leave, sparking national outrage. Another incident that year involved denying restroom access based on race. In 2021, a Dublin Starbucks faced a €12,000 fine after a customer received their order with a racist illustration on the cup.
Union opposition
In 2022, Starbucks dismissed more than 85 employees across the United States who were engaged in union organizing efforts, amid allegations of unfair labor practices and claims that the company promoted an environment of intimidation and monitoring. Later that year, in November, Starbucks shut down its first unionized store located in Seattle, citing concerns related to safety. By December, workers from upwards of 100 outlets participated in a three-day strike to protest what they described as anti-union tactics and to demand improved workplace conditions.
Pride/LGBTQ+
During June 2023, Starbucks encountered backlash after reports emerged that some branches in 22 states had been instructed to remove Pride Month decorations. This decision ignited criticism amidst ongoing national discussions surrounding LGBTQ+ rights and resulted in announced strikes at several locations.
Boycott during the 2023 Gaza conflict
Toward the end of 2023, Starbucks was subject to boycotts following its legal action against the Starbucks Workers United (SWU) union over a social media message expressing support for Palestine in response to the October 7 Hamas attack on Israel. Starbucks argued that the post harmed its brand reputation and filed a trademark infringement lawsuit. In response, SWU sought permission to continue using the Starbucks name and logo and accused the company of defamation. SWU President Lynne Fox clarified that the post was unauthorized and promptly removed. CEO Laxman Narasimhan addressed staff, stating, "Our position is unequivocal. We stand for humanity."
Additional disputes
In 2025, a court mandated Starbucks to compensate $50 million to a delivery driver who sustained burns after a hot beverage spilled on him due to improper securing.
See also
- Coffee culture
- List of coffee companies
- List of companies based in Seattle
- Multinational corporation
Further reading
- Behar, Howard with Janet Goldstein. (2007). It's Not About the Coffee: Leadership Principles from a Life at Starbucks, 208 pages. .
- Clark, Taylor. (2007). Starbucked: A Double Tall Tale of Caffeine, Commerce and Culture. 336 pages. .
- Michelli, Joseph A. (2006). The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, 208 pages. .
- Pendergrast, Mark. (2001). Uncommon Grounds: The History of Coffee and How It Transformed Our World. Texere, London. .
- Schultz, Howard and Dori Jones Yang. (1997). Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time, 350 pages. .
- Simon, Bryant. (2009). Everything but the Coffee: Learning about America from Starbucks. 320 pages. .
- Media
- Archived at Ghostarchive and the Wayback Machine:
- Archived at Ghostarchive and the Wayback Machine:
- Archived at Ghostarchive and the Wayback Machine:
External links
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