Onward: How Starbucks Fought for Its Life Without Losing Its Soul
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media reaction to, 70–71
overall objective for the transition, 51
partner e-mail supporting, 67–68
stock price jump after, 70
Revenue. See Financial reports; Same-store sales data (comps)
Rewards program
presentation at annual shareholders’
meeting, 2008, 133–34
relaunch of, June 2008, 165
relevance during recession, 263
Rewards Card benefits, 134
Starbucks Gold Card, 232–33, 263, 320
successful relaunch of, 232–33
success of, 320
value delivered by, 232–33
Ritt, Steve, 129
Roasting coffee beans
demonstration at leadership conference, 197
Full City roast, 84
refinements in process of, 84
roasting plant in Kent, WA, 326–28
Starbucks philosophy of, 84
Robinson, Urano “Uri” (partner), 245–47
Robusta coffee beans, 83, 242
Rocky Mountain Chocolate Factory, 110
Rodgers, Jack, 129
Rolan, Clara (partner), 190–91
Roy Street Coffee & Tea, Seattle,* 279–80
Rubinfeld, Arthur (senior leadership team),* 145, 152–54, 161, 178, 275–79
Russell, Craig (partner), 187, 194–95, 198, 206–7
Rwanda*
author's speech in, 290–91
author's trip to, 287–93
cows given to communities, 292–93, 323
farmer support center in, 289, 323
tragic history of, 288
S
Salesforce.com, 124–25, 127
Sales reports. See Financial reports; Same-store sales data (comps)
Sales-to-investment ratio for stores, 152–53
Same-store sales data (comps). See also Financial reports
continuing fall of, 2008, 104
disappointments in 2007, 42
discontinuation of reporting announced, 90–91
first-quarter, 2008, 89
fourth-quarter, 2008, 218
improvement in 2009, 270, 286, 297–98
negative, financial modeling requested for, 218
negative comps in December, 2007, 49
overemphasis on, 90
second-quarter, 2008, 144
Sandberg, Sheryl (board member),* 266
Sanfang Qixiang store, Fuzhou, China*
San Francisco Chronicle, 159
Saturday Night Live ad spot, 213–14
SBC. See Seattle's Best Coffee
Schultz, Howard*
analyst conference speeches, 2008, 229–30, 235–36
annual shareholders’ meeting, 2008, 130–36
analyst conference, 2009, 227–28
change from ceo to chairman, 2000, 16
childhood and early years of, x–xi, 13, 33–32, 51, 82
China trip, 303–11
CNBC interview by, 262–64
Coltelleria G. Lorenzi visited by, 271–73
Espresso Excellence Training video speech of, 7
founder's perspective of, 38
friends providing support for, 222
global leadership summit opening speech, 2008, 103–5
Hangzhou, China speech, 309–10
Il Giornale founded by, 10–11
innovation encouraged by, 240–42
Italy trip, 1982, 9–10
leadership conference speeches, 2008, 201–2, 205–6
leadership style and philosophy of, 32, 177, 222, 252, 254, 260, 299, 308, 309
memos of, 9, 23–32
merchant philosophy of, 4, 12, 15–16, 24, 34, 110, 273, 272–74
return as ceo, 41, 42–52, 55–68
role as chairman, 16–17
Rwanda trip, 287–93
Shenzhen, China open forum speech, 304
Schultz, Sheri, x, 9, 16, 46, 92, 142, 194, 214, 253, 289, 329
Schuman, Susan, 73
Schwab, Charles, 71
SCO. See supply chain organization
Seattle Post-Intelligencer, 159
Seattle's Best Coffee (SBC)
acquisition by Starbucks, 234
Michelle Gass appointed president of, 308
rebranding and expansion of, 2010,* 316
Securities and Exchange Commission, 50, 137
SeekingAlpha.com, 141
Seligman, Peter, 120, 132–33
Senior Leadership Team, 2010* Serrano, Tina (partner), 187
Seven Big Moves, 106–8, 129–30, 318–26
Shanahan, Sean (partner), 176
Shareholders. See also Financial reports
announcement of return as ceo to, 63–66
annual meeting, 2008, 76
doubts about Starbucks’ future, 102
in mission statement, 113
Shell, Jules, 289
Shennan, Jamie (board member),* 153, 221
Sinegal, Jim, 133, 165, 232, 257
SmartMoney.com, 260
Smith, Orin C.,* 16–20, 22, 40–41
Social media. See also specific media
customer connections aided by, 265–66
decision to explore opportunities in, 124–25
election-themed ad campaign using, 214–15
overview of Starbucks’ use of, 320
Starbucks ranked number-one most engaging, 286, 298
Social responsibility. See also Environmental concerns; Health-care benefits; Sourcing
Ben Packard appointed as head of, 119, 125
Bono's speech on, 203–4
C.A.F.E Practices program, 20, 120, 291, 323
donations to local communities, 19
election-themed ad, 208–11
Ethos Water donations, 119
Fairtrade certification, 19–20, 119, 204, 323
Heifer International relationship, 293–94
New Orleans aid,* 194, 196, 198–200, 324
partners’ generosity of spirit, 116–17
(RED) partnership, 203, 205, 266, 294–95
Starbucks’ commitment to, 18–20
Starbucks Shared Planet, 204–5, 278
volunteer service by partners, 323–24
Sonnenfeld, Jeffrey, 71
Sorbetto, 140–41, 164–65, 167–69
Sorkin, Andrew Ross, 184
Sourcing
C.A.F.E Practices program, 20, 120, 291, 323
coffee farmers, 288–89
ethical, Starbucks’ commitment to,* 19–20, 72
Fairtrade certification for, 19–20, 119, 204, 323
farmer support centers, 289, 323
gallery at leadership conference, October 2008, 197
loans to coffee farmers, 289
overview of initiatives, 323
presentation at annual shareholders’ meeting, 2008, 132–33
in Seven Big Moves, 107
Starbucks Cards. See also Rewards program
popularity of, 165
as Rewards Cards, 134
value delivered by, 232–33
Starbucks Coffee Company
author hired as marketing director for, 9
author's love for, 105, 207, 311
capitalization, 1992 and 2007, 29
community within, 13
expansion in early 2000s, 17, 18, 20
growth model unique to, 317–18
origin of name, 11
purchased by author, 11–12
Starbucks Coffee International. See also China
accelerating growth of, 16, 48, 75
acceptance of, 305–6
announcement of return as ceo to leaders, 62
challenges of, 306
expansion in early 2000s, 16, 17
growth in China, 302–11
expansion slowed by recession, 218
John Culver appointed president of, 322
joint-venture partners of, 234, 330
as largest potential market,
234, 322
number of countries in 2000, 5, 16, 51, 234
number of stores in 2000, 16
in Seven Big Moves, 107, 321–22
status in December 2009, 234
vetting of local business partners, 234
Starbucks Digital Network,* 320–21
Starbucks Experience.* See also Third place 9, 12–13, 23–25, 44, 56, 120–21, 134, 147–49, 233–34
Starbucks Gossip blog, 158, 30
(STARBUCKS) RED, 266
Starbucks Reserve coffee,* 319, 327
Starbucks Shared Planet, 204–5, 278
Starbucks stores. See also Closing of stores, July 2008
Budapest, Hungary*
in China,* 17, 103, 305
closed for training,* 3–6, 78, 104
closings of, 152–54, 263
Commerce Center store, Vancouver, WA, 281
design of, 18, 25, 107, 145, 273–80, 283, 322
Disney Village, 276
economic model of, 152–53
Edinburgh, Scotland*
15th Avenue Coffee & Tea, Seattle,* 278–80
First and Pike, Seattle,* 275–76
gallery at leadership conference, October 2008, 198
sustainability of, 276, 324
mercantile stores, 278–80, 322–23
in mission statement, 113
number in 2000, 16
number in 2005, 20
operations of, 149–51
Olive Way, Seattle,* 323
in Paris, France,* 17, 276
Pike Place Market, Seattle,* 44, 55–57, 86
Roy Street Coffee & Tea, Seattle,* 279–80
technology in, 150–51, 205
University Village, Seattle,*
Stardust project, 248, 249. See also JAWS (just add water and stir)
Steiner, Domenic, 121, 132
Steiner, Esther, 121
Stilin, Robert, 222
Stock options
as benefit for all partners, xiii, 13
as core Starbucks element, 72
Japanese gratitude for, 17
known as Bean Stock, 72
Stock prices. See also Financial reports
after VIA announcement, 260
during biennial analyst conference, 2008, 233, 235
continuing fall of, 2008, 104
drop after store closings, July 2008, 158
drop by 42 percent in 2007, 22
drop during annual shareholders’ meeting, 2008, 135
drop on September 15, 2008, 184
earnings per share, 2007, 41
earnings per share, 2009, 297
increase by December, 2010, 326
increase from 1992 to 2007, 29
increase in 2009, 286, 309–10
jump after return as ceo, 70
Wall Street pressure about, 21
when Jim Donald became ceo, 21
Store designs*
Arthur Rubinfeld hired to renew, 276–77
author's vision for, 273–74
in China, 310
continuing progress in, 322
Disney Village store, Paris, France, 276
15th Avenue Coffee & Tea, Seattle, 278–80
First and Pike, Seattle,* 275–76
Roy Street Coffee & Tea, Seattle, 279–80
sustainable construction for, 277–78
Store managers
Amy Bernash, 281
Chad Moore, xii
Clara Rolan, 190
challenges for, 40, 57, 77, 121, 130–51, 185–86
empowering of, 205–6, 284, 325
leadership conference for, 78, 192–207
Helen Fei, 303–5
Janine Simmons, 143
Josh Howell, 283
Li Yan, 304
Mayumi Kitamura, 116
role and importance of, 18, 77, 148–49, 161, 193, 299
Storytelling
by galleries at leadership conference, October 2008, 198
at heart of being a merchant, 273
merchant success dependent on, 34
by Starbucks stores, 273–74
Stowe, Harriet Beecher, 301
Strickland, Bill, 110
Stroum, Cynthia, 129
Su, Hannah (partner), 245
Success
of Clover coffee machine, 319
of Frappuccino, 76, 240
of leadership conference, New Orleans, October 2008, 207
of MyStarbucksIdea.com, 135, 142, 320
of Pike Place Roast, 319
of rewards program, 232–33
small failures covered by, 40
Starbucks status in 2000, 15–16
storytelling as key to, 34
of VIA, 316
Sullivan, Todd, 141
Supply chain organization (SCO)
author's responsibility for, 188–89
challenges unique to, 173, 186, 188–90, 219
importance of, 186
Peter Gibbons as head of, 105, 178, 185, 187, 189, 254
role in transformation, 219
strategy for transformation of, 189
transformation of, 325
Support center, Seattle*
Sustainability
overview of initiatives, 324–26
in Seven Big Moves, 108, 323–26
in store construction, 277–78
SymphonyIRI Group, 316
SYPartners, 72–74, 106, 114, 197, 326
T
Tad Gormley Stadium, New Orleans, 199
Tait, Richard, 241
Target, 89
Taste tests and coffee tasting
Consistent Brew, 86
Consumer Reports, 2007, 85
at leadership conference, October 2008, 197
Pike Place Roast development, 135
Pike Place Roast launch, 142–44
Tribute Blend, 313–14, 327–28
VIA, 258–59
Zagat ratings, 286
Technology
in and for stores, 67, 150–51, 205–6
laptops presented at leadership
conference, 2008, 205–6
overview of progress, 325
point of sale (POS) system, 150–51, 325
Teruel, Javier (board member),* 221
That Shop in Via Montenapoleone, 273, 275, 280–81
Theo Chocolate, 78
Thermoplan espresso machine manufacturer
La Marzocco machines from, 121
Mastrena machines from, 121–22, 131–32, 309, 319
Verismo 811 machines from, 121
Third place. See also Community; Starbucks Experience
as part of Starbucks Experience*
providing as goal of Starbucks, 13
universal relevance of, 305–6
Third-quarter earnings conference call, 2009
author's comments during, 297–99
comp improvements, 297–98
operating margin increase, 298
performance exceeding expectations, 297
question-and-answer session, 299–300
reasons for improved performance, 298–99
response to, 300–1, 303
Time.com, 159
Tokyo store, 16
Top Pot Doughnuts, 79
Torgovnik, Jonathan, 289
Torrado, Alberto, 222
Torrebiarte, Peter (partner), 289, 291
Torrente, Sandi (partner), 67–68
Touch Worldwide, 197
Transformation Agenda
balance needed in, 72
benefit of, 49
drafting of, 72
evolution of, 49, 123–24, 105–6