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Strategy
Aimee Groth and Gus Lubin
2011-07-29T15:05:00Z
On September 7, 1982, Howard Schultz began working at the first Starbucks store in Seattle's Pike Place Market. At the time, he was the company's marketing officer. A business trip to Milan and Verona convinced him that a coffee shop had to sell more than whole bean and ground coffee to really be successful. Since his bosses wouldn't do it, he launched his own company, Il Giornale. In 1987, he bought his former bosses out, and became the CEO of Starbucks Coffee Company.
Today, there are 16,000 stores around the world.
Every business starts small. For those coffee shops trying to compete with Starbucks, we've compiled a list of things you can imitate.
(Note: The authors of this article both worked briefly for Starbucks. They are aware of the many valid reasons to hate on this company.)
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With two registers and a full staff, Starbucks can churn through 220 customers/hour*
*At Brooklyn's busiest Starbucks location, which is near a subway hub
"From the moment a customer walks through the door, we want to get them through in 3 minutes," a longtime Starbucks manager tells us. "Or 3-5 minutes if it's busy."
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Employees know the difference between a cappuccino and a latte
Starbucks has these and other drinks down to a science, while many coffee shops fake it.
At Starbucks a cappuccino is a shot of espresso plus half steamed milk and half foam. A latte is a shot of espresso plus steamed milk with a thin layer of foam.
When making a cappuccino, baristas steam milk for 6-8 seconds. Latte milk is steamed for only 3-5 seconds. Baristas also monitor temperature when steaming milk, serving drinks at an average of 165 degrees Fahrenheit and never above a scalding 180.
To become a certified barista, candidates must pour a perfect cappuccino, which is evaluated either with an electronic scale or using a measuring cup.
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Starbucks never serves coffee that has been sitting for longer than 30 minutes
Baristas manage four batches of coffee at one time, rotating each at least every 15 minutes and never allowing one to sit longer than 30 minutes. They do this even during off hours, throwing away coffee rather than serve anything old.
They also follow a timed regime for iced coffee, iced tea and pastries to ensure that everything tastes fresh.
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The store claims to serve 87,000 different drink combinations, all of which a barista can make without hesitation
Baristas manage complex orders with the innovative Starbucks shorthand, or Beverage ID Code, which is written in marker on every cup.
For example, a Double Chocolate Chip Light Frappuccino is DCCFL.
How do they do it? Starbucks baristas undergo over 30 hours of training on everything from Frappuccino technique to the origins of coffee beans
(Sessions include: First Impressions & Customer Service, Starbucks Experience, Coffee: Brewing & Tasting, Espresso Bar Basics, Food & Warming, Beverage Essentials, Cold Beverage, Coffee: Growing & Processing, Point of Sale (POS), Beverage Preparation, Customer Service Essentials, Coffee: Roasting & Packaging)
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Most stores have upgraded to the Swiss-made Mastrena, designed to make "the highest-quality, consistent shot of espresso that will be second to none"
The Mastrena makes it easy to pull a precise espresso shot. It's also shorter, allowing baristas to interact with customers.
Better espresso machines exist, but they are rare and won't be found at any major chains.
Source: Houston Chronicle
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Select stores have the top-of-the-line single-brew Clover, which makes probably the best coffee you've ever tasted
When Schultz tasted the Clover at a small cafe in New York he immediately declared it "the best cup of brewed coffee I have ever tasted."
Starbucks bought the company that makes Clover in 2008 and started introducing the dream machine at select stores around the country.
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Baristas who work at least 20 hours/week are eligible for health insurance. This could have something to do with the famously cheery demeanor of "partners"
Of course this isn't cheap. In 2009 health care cost the company a heavy $250 million, Schultz told Seattle Times.
Customers can pay with their iPhone and Blackberrys
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Starbucks provides free WiFi, and there's no restriction on laptop use
You can learn what NOT to do from some big companies
The 19 Most-Hated Companies In America >
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