From modest beginnings, growth spurts took place in the 1980s and 1990s - under Howard Schulz - and by 2007 there were over 550 branches in the UK alone. Schulz has written up the Starbucks success story in Pour Your Heart Into It but coffee shops simply grew up in response to rising consumer affluence and the need for a comfortable place to drink higher quality coffee than the traditional bar or cafe. Competition for selling a good cup of coffee is most likely to come from McDonald's in future but Starbucks still envisages reaching 40,000 branches worldwide (including franchises) and will open 2,500 in 2008 alone.
Secrets of Success
- A cultured and female-friendly place to call in
- Global appeal: there are cafes and coffee drinkers everywhere
- Frappuccino and all the other innovations
Business Basics: Starbucks Corporation
- Seattle-based coffee shop specialist with over 15,000 branches worldwide (550
in the UK) - Revenues of $9.4bn in 2007, up 21%
- UK competitors led by Costa (Whitbread Group) and Caffe Nero
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