POUR YOUR HEART INTO IT
The atmosphere of Stacks in those days was friendly and
low-key, but we worked very had. Christmas was ur busiest se
son, and everbody in the olice went wo the stores o pth in and
help. One day Iwas working inthe Pike Place te ding the busy
season. The stofe was packed and 1 way in pice Behind the
curring up sales tin boas with cle beans
Suddenly: someone shouted. “Hey That guy ast headed on
‘with some stuf” Apparent 3 customer ad grabhed wo expen
sve cottemakers one in each han and headed ut the door
T jumped over the counter and sarted running, Without sup,
ping to wonder whether thezuy had wun chased him pa ster
‘obblestone street, eli Drop that stl: Drop i
“The thie was so stared char he dropped bath the pices he had
stolen and ran away: F picked them up and walked hack nc the
store holding the caleemakers up ike trophies. Evervbudy
applauded. That afternoon, I went back 1 the roasting plant
tehere my otic was, and diseered thatthe sat had wna up a
Fhage bane for me, which read. "Make my doy
The more [wot to know the company, the more | appreciated
the passion behind st But I yradlly noticed one weakness, While
the coffee was unquestionably the best could be, the sive
Sometimes came actos a8 tle arouant. Tha atte grew on
tot the high degre of pride Starck had n the superionty of ur
coffee Customers sho relished in discovering new tases and
blends enjoved discussing ther newfound knowledge with oar
people, but I noticed that fst-sine customers occasionally tl
!ynoran or shed,
| wanted to bridge hat ya. entiied o closely with Starbucks
that any fw Starbucks tlt ike my own persanal weakness. So
| worked with employees on casiomerinendly cles skills and
developed material that would make i eas lr ustoers 0 Fam
shout coee Sil, gure there most he a better wa to make prea
callce acceuible 19 more than a small lite af gourmet coffee
ddiskers
i
:
S50 15 LIKE AN ARIA
Vision Is War They Cate Ir WHEN
Orwens Can’ Sie Whar You See
‘Theres no ester place o tly savor the romance of ethan aly
Thats where found the inspiration and vision that have driven my
‘wmf andthe course of Starbucks from ret Seattle to national
prominence
T discovered that inspiration inthe spring of 1983, 3 sme when
Isao even particulary looking tort had been at Starbucks for
a year and the company had seat me to Nilan to attend an inter
rational housewares show. [traveled alone and stayed at alow
Indget hotel near the convention center
“The minute | stepped aut the door and into the sunshine of 2
‘warm autumn day the spin of Iealy washed over me. didnt speak
word of Kahan, but It belonged
Iralans have an unparalleled appreciation forthe fine pleasures
‘of daily lie: They hae figured out how to ive in perfect balance
“They understand what it means to work, and eqally what it means
to relax and enjoy life. They embrace everthing with passion.
Nothing is mediocre. The infrastucture in Kaly is appalling
Nothing works. Bu the food of lly s absolutely incredible. The
architect i breathtaking, The fashion sl lines elegance all
‘over the world,
especialy love the light of Italy I hasa ead effect on me It
Just brings me alive
‘And what the light shines on is equally amazing. You ean be
walking doven a grab street span snremsnkable residential neigh
borhood when suddenly, chrough a half-open door, you catch an
unbelievably bright mage ofa woman hanging color lothing in
a couryard ringed with tlowering plants. Or oat of nowhere amer
‘chant wll oll up a meal door and reveal a gorgceus display of pro-
duce: freshly picked fats and veyerables, arayed in perect gleam
tng rows.
sUR YOUR HEART INTO IT
Halians seat every deta of retail and tod preparation with sev
‘erence and an insistence that nothing less than the est wil da by
late summer and all. or example, tes figs are avaiable at any
‘ordinary produce stall The merchans will ask “White or black
the order is for halt and hall, she merchant will tae a simple cr
board tray and cover it with three o our leaves, then pick each
fig individually squeezing itt ensure the perfect level of peness
He will arange the fut in four rone—three white thice black
three whic, thee black—and he wl slide the tay carly inte 3
bay and hard itto you with the pride of an artisan
‘The morning ater Iarnved, | decided ta walk tothe tradeshow
‘which was only teen minutes frm my hotel. Hove to walk, anc
Milan isa perfect place tor walking
lust as stared of, noticed atl expreso bar. | ducked inside
twlook around. cashier bythe door sled and nxided Behind
‘the counter al thin man greeted me cheery Thon srs” a
he pressed down on a metal bar and 3 huge hss of scam escape
He handed a tiny porcelain demtase of expresa to one of the
three people who were standing elbow-to-elbow a the counter
Next came a handerahed cappuccino, topped witha head per
fect white foam, The barsta moved so graceully hat it looked as
thon he were grinding coffee hea, paling sors of espresso
and steaming mi atthe same sme, ll she while conversing mer
nly with his customers fe was great theater
“Espresso” he asked me, his dark eves tashing a he hell vt
cup he had jst made
couldnt resist | reached for the expres and sok 3 sip.
strong, sensual flavor crossed my tongue. After tree ips i was
one, but could til el its warmth an eneray
Halfa block ater scons side tec, [sa another esress bar
“This one was even more crowded | noticed thatthe gray-haised
rman behind the counter grected each castomer by name. He
tnpeared to be both owner and operator. He and hi cstomers
‘were laughing and talking and enjoying the moment could tell
To ITALIANS,
£550 15 LIKE AN ARIA
thatthe customers were regulars and the routines comfortable
fami.
Tn the next few blocks, | saw two more cepreso bars. Las fs
onted
Tewason that day hat | discovered the ntual and the romance of
coliec brs in lly. saw how popular they were, and how vibrant
Each one had is own unique character, but there was one common
thread: the camaraderie between the customers, who knew each
other well and the barista, who was performing with lair At that
time, there were 200,00 cotte bars in Italy and 1500 alone in the
city of Milan, 2 city the size of Philadelphia. Ie seemed they were
‘om every street comer and all were packed
‘My mind started charming
“That afterioon, after | fished my meetings a the trade show, |
‘et olf again, walking the streets of Mila to observe more espresso
bes soon found myself atthe center ofthe city, where the Piazza
el Duomo is almost iteraly lined wth them As you walk rough
the piazza, youre srrounded by the smells of coffe and roasting
chestnuts and the light banter of political debate and the chater of
ids in school uniforms. Some ofthe areas coffee bas are elegant
and sys while others are bigger, workaday places.
Inthe morning all are crowded, and all serve espresso, the pure
essence a coffee in a cup. There are very few chars, any. All the
tustomers stand up, 28 they do in 2 westen bar All the men, it
seemed, smoke.
“The eneray pulses all around you. alan operas playing. You
‘an hear the inerplay of people meeting forthe fst ime, as well
as people greeting triende they sce every day at the bar. These
places, saw offered comfort, community and a sense of extended
family Yer the customers probably dont know one another very
well, except inthe context ofthat eofee bar
Inthe ea aleroon, the ace slows dawn. I noticed mothers
with children and rewired fas lingering and chatting with the
barista, Laterin theateroon, many espresso places put small ables
073849tom the sidewalk and served aperitif, Fach was a nighborwod
fathering place part of an established daily routine
Ta the ins, he
lecharis ota diner ascotfce
te he in America in the 1950 and 1960 isan extension ofthe
Front porch, an esters
ofthe home: Each morning they son a
their favonte coffer bar where theyre treated with a cup o
‘expreso that they knoe custom-made. In American tems the
person behind the counter isan unskilled worker but he ecu
ain ants when he prepares » betta cup ot collec The eatie
bpanstas of aly have a respected place in thet neighborhoods
‘As [ watched, I had a revelation. Starbucks had missed the
point—eompletely massed it. Ths 0 pel Iahouht. Ths
lik The connection o the people who loved coer did nt have
tw take place only in their homes, whete they groxind and brew
‘whole bean cote. What we had to do wos unlock the romance
and mystery of coteefsthand, n cole bars, The Ilias under
stood the personal relationship that people could have wo coe. ts
social aspect. couldnt believe that Starbucks was inthe coe
business, yet was overlooking so central an clement oft
Te was hke an epiphany: Ie wae so immediate and physical shat
seas shaking
Te seemed so obvious Starck sold great cate bea, bt we
Aidit serve cotte by the cup. We treated coffe a produce, som
‘ung tobe bays and sent home withthe wrocene. We stayed
‘one ig step away from the heart and soa of what cote has meant
throughout the centuries
‘Serving expresso drinks the Italian way could he the dite
ing factor for Starbucks I! we could re-create in America the
authentic Kalan cotee bar culture, i might resonate with ater
Americans the wait did with me. Starbucks could be a presto
nec and not st 3 reat retail store
Tstaved in Milan about a week, I continied my walks through
the city, stn lost every day: One mann I took a tain ide to
Verona. Although i only a lortvminite ride fom industri
a
Aan it elt as i i had stoud sail since che thirteenth century.
caofice bars were much hike Nila, and in one, mimicked some
Sid ordered a “calf latte” my fist taste ofthat donk. U ad
txpected ioe as cafe wie nk, ut T watched she bast
made a shot of espreno, steamed a rthy’pitcher of ik, and
. ‘Here was the perfect balance between steamed milk and cottee
Perec dank OF alte calle exper amet. me bd eve
ab s hoh
‘mentioned this dink. Norn Ama
ery nih would cll Sher back n Seat and tel her what
nd thinking. “These people are so passionate about
Cotlce” [tok her. “They've elevated itt 3 whole new level
‘On that day in the pitzea in Milan, | couldnt foresee the su
cess Starbucks is today, But | felt dhe unexpressed demand for
romance and community: The kalans had tuned the drinking of
Coie into a symphony andi tlt ight. Starbucks was plying in
the same hall but we were plaving without a string section
‘ brouhy that feeling back ro Seattle and aniused it in others
around me, cho recreated i for sll other all over the country
Without che romance of Talian espresso, Starbucks would sll he
watt was, beloved local coffee bean store in Seat.
“Luck Is THE Resioue
oF Desicn”
Whenever you see a
succesful business,
someone once made a
courageous decison
—Peree Drucren
en Rickey, the Hrooklvn Dodgers general manager
‘who broke the color hariet by signing an Jacke Robinsn
“often remarked: “Luck the residue of design”
People sometimes say the sun always shines on Starbucks, that
‘ur access was built on lack. tre cat we bit the Hont wate of
what became a North American social phenomenon, the wide
‘spread popularity of cafés and espresso bars. can't say that pre
dicted this wave, but Id perceive the romantic appeal of cafee
by the cup, inlay, and chen spent three yeas bainsonming and
laying the plans to translate itinto an American context.
‘Whenevera company. ora person, emerges from the crowd and
shies. others ate quick o attnbute that prominence to gon! fr
‘The achiever of couse, counters that its the product
an ahi the product of talent
{gree with Branch Rickey. While bd luc, iS tre, may —_—
cto the ble, good hick, seems, comes to those who pln fort
Great Iota, Ler's Do Sometwine Eu
Hove yout ever ad a brillant idea one that blows you away
‘only eo have the people who can make reality tell you sts aot
‘worth pursing?
“Thats what happened to me on my’ return wo Seattle hom Kay
thought Fd come upon til extraordinary sight. one chat could
serve a the foundation for 2 whole new industry and change the
way Americans drank cole, To my bosses, however, | was an
coverencted marketing director
‘Starbucks was a retaler—not a restaurant ora har, they argued
Serving espresso drinks would put them inthe beverage Dusiness, 3
rove they feared would dilute the incgnty af what they enti
sioned the mission af a coffee store to be. They alo pointed 0
Starbucks succes, The Company was small, closely held, private
snd prottable every year: Why rock the boat?
But as Twas to lear, there was a more immediate reason my idea
sidnt appeal: Jey was considering an opportunity that excited
hin far more
“The story of Starbucks has some unexpected wists and tums
but none s6 strange a8 the one that happened next In 1988
Starbucks bought Peets Coe and Ten
Tust how that occurred i 3 part of Starbucks’ history that isnt
fen told, since Peet and Starbucks ae now competitors in the
Son Francisca Bay area, Most customers dont know they were once
‘oterowined
Te was lke the son buying out the father. Starbucks! founders
had, trl, drawn inspiration from Peets and learned thet roast
ing sills at dhe elbow of Alred Pect, But Aled Peet had sold the
bosines in 1979, and by 1983 the new omer was ready to sellakin, seas the chance of a etime and a much
‘more promising way of expanding than opening egress bars As
& purist, heal arded Peets as theultimate i cole purveyors
Teas the same size as Starbuck, with ahowt 5 stones. Bat ery
mind. Pets woul always be the real thing the aiinator of dark
rwosted coflee in Ameria. The Seatle market, he thought was
already wellserved, while San Francinco and northeen Caltorna, 9
‘much Fanger area oftered pen of room io go
To fund! the acquisition, Starbucks went deeply into debe. The
day we acquired Peet, real. we had adet-to-cuity ata of 61
‘Only n the go-go 1980s would the banks have made ach ade
‘My heat sank when we tok on that burden e tied ur hands
and deprived us of the flexibly to try out new ideas. The cam
Pan was now so heavily leveraged that there would be no many
-wailble for growth or innovation,
The ask of consolidating Starbucks and Peets proved more dit
‘cl than we had imagined, Despite a shared prelerenee lor dark
roasted cote, our company cultures clashed. While Starbuck
people felt gratitude and respect for Peetslezacy, Peete people
feared an unknown Seatle upstart coming to swallow them up
‘Whats more, the acquisition distracted managements attention,
For most of 1984 the managers of Searbucks were lying back and
forth between San Francisco and Seattle myself went thete every
‘other weck to averse Peets marketing and retail operations
Some Starbucks employees began tole neglected In one qr,
they didot receive their usa bonus, They went to femy with 3
request for mone equitable pay, for bene, specially for pare
timers and fora reinsatement other bonuses Bat his focus was
where and he dint respond. Angry employees trom the plan
‘eventually circulated peiion to invite the union in- Nobody in|
management realized how widespread and deep the dacontent was
Retail employers seemed satisfied ad since they umber plant
worker, Jey figured they sould vote to heep the union out Bat
‘when the day eame fo the ofc che union won bythe votes
1
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