History of Starbucks: The journey from local Seattle store to global coffee powerhouse

Learn about the history of Starbucks, from its inception in Seattle to its current status as a global coffee giant with more than 38,000 locations worldwide.

Coffee is integral to American culture, and the name "Starbucks" has almost become synonymous with "coffee shop."

Starbucks, easily identified by its iconic green mermaid logo, originated from the vision of its three founders to provide high-quality, freshly roasted coffee beans.

Starting from a modest storefront in Seattle's Pike Place Market, the company has expanded worldwide, with locations in all 50 states, plus regions and territories, and more than 38,000 locations globally.

Starbucks was founded in 1971

In 1971, three college friends established the Starbucks brand and opened the first store near the notable Pike Place Market.

Initially, it sold specialty items for home use, including coffee beans, teas and spices from around the world and coffee-making equipment. 

Drawing inspiration from Alfred Peet, the Dutch immigrant founder of Peet's Coffee & Tea and original bean supplier for Starbucks, the founders honed their coffee roasting techniques. Under Peet's guidance, they experimented with and eventually formulated distinctive roasting practices and blends.

Starbucks expanded in 1980

In 1980, Starbucks operated four locations in Seattle. Around this period, as the core operations began to flourish, co-founder Zev Siegl left the company and sold his shares.

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Howard Schultz joined Starbicks in 1982

Howard Schultz joined Starbucks in 1982 after his interest in the company was piqued by a large order of coffee machines as vice president and general manager at Hammarplast, a kitchen appliance company.

Impressed by what he saw during his visit to Starbucks, he came on board as the director of operations and marketing. He focused on enhancing customer service and empowering employees to engage customers with product knowledge and friendly customer interactions.

In 1983, Schultz returned from a trip to Milan, Italy, inspired by the rich Italian coffee culture. He was determined to bring this essence to Seattle, envisioning Starbucks as a national coffeehouse chain.

However, he failed to win over co-founders Jerry Baldwin and Gordon Bowker to his vision for artisanal coffee beverages as a medium for social interaction, since they preferred to preserve the brand's original vision.

Unable to align his vision with the other owners, Schultz ventured out to start his coffee shop, Il Giornale. It quickly found success and expanded into several cities.

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Starbucks changed from brown to green aprons in 1987

In 1987, Baldwin and Bowker decided to sell Starbucks.

Schultz seized the opportunity and used profits from his company, Il Giornale, along with investor support to acquire the company. 

All of his efforts went into the café concept, which propelled the growth of the coffeehouse chain to more than 100 locations in the country. The expansion began with openings in Chicago and Vancouver, Canada, and continued into California, Washington, D.C., and New York.

Starbucks went public in 1992

On June 26, 1992, Starbucks went public at $17 per share. The value per share had risen to $21.50 by the end of the first trading day.

Starbucks grew and the introduced the Frappuccino in 1990s

During the 1990s, Starbucks hit several notable milestones.

In the summer of 1995, it launched the Frappuccino, an iconic, sweetened, ice-blended coffee drink initially available in two flavors across the United States and Canada.

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The company opened its first store across the Pacific Ocean in Japan in 1996, followed by Singapore in 1997. Expansion into Europe occurred in 1998, and Starbucks entered China the following year.

Schultz stepped down in 2000

In 2000, Schultz announced his decision to resign as CEO of Starbucks while maintaining his role as chairman. Orin Smith succeeded him as CEO. At this point, Schultz had grown the company to more than 3,000 stores.

Schultz returned in 2008

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Following Schultz's departure as CEO, customer satisfaction declined across the 15,000 locations worldwide.

Schultz reassumed the CEO position in January 2008 and implemented several strategic changes. These included the closure of 900 stores and additional offerings to the menu. By 2012, these actions had helped Starbucks regain financial stability.

The company's name was derived from Herman Melville's classic tale "Moby-Dick," which portrays the maritime traditions of early coffee merchants.

"Starbuck" is the first mate aboard the Pequot in the novel. Although one of the founders initially suggested "Pequot" as the company's name, they ultimately agreed upon "Starbucks."

Starbucks was founded near Pike Place Market by Baldwin, Bowker and Siegl. Each founder contributed their personality and prowess to the coffee trade, united by a shared enthusiasm for coffee and tea.

The founders, originally friends from the University of San Francisco, had started careers in their respective fields before turning to the coffee business.

Baldwin worked as a schoolteacher, Bowker was a writer and Siegl taught history. They shifted from their current professions to join forces and pursue a vision of introducing quality dark-roasted coffee to the people of Seattle.

The Starbucks logo, designed by Terry Heckler in 1971, was originally brown and featured a majestic bare-breasted siren.

The two-tailed mermaid, drawing inspiration from old marine books, emerged. Coffee enthusiasts can still find the signature siren logo in the original Seattle Pike Place Market location.

The logo received a modern makeover when Schultz acquired Starbucks in 1987, fusing the logos of Starbucks and Il Giornale. In 2011, the logo evolved into its current depiction of the siren.

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