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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. s UR 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 073849 tom 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 sell akin, 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 se shake The company eh dd he company be ed ns ongr used late wohethat flowed, is pesmi nea an no thoes pepe ble marge SY neh eva sey cl eel sated Orr ty nr param near engta do ne ms caving ons ate bn tore company Man ‘Rte ter burnt money om aks Bae dv

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