Starbucks:
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For other meanings of the name "Starbuck", see Starbuck.
Starbucks Corp.
Starbucks logo
Type: Public (NASDAQ: SBUX)
Founded: In 1971 across from Pike Place Market in Seattle, Washington
Headquarters: Seattle, Washington, USA
Key people: Howard Schultz, Chairman
Jim Donald, President & CEO
Industry: Restaurants
Products: Starbucks
Seattle's Best Coffee
Frappuccino
Tazo Tea
Torrefazione Italia Coffee
Starbucks Hear Music
Pasqua Coffee
Revenue: $6.369 billion USD (2005)
Employees: 125,000
Website: starbucks.com
Starbucks (NASDAQ: SBUX, SEHK: 4337) is the world's largest multinational chain of coffee shops,[1][2] with corporate headquarters in Seattle, Washington, United States. Its coffee shops in the U.S. and Canada are especially popular among students and young urban professionals[citation needed]. Stores are now found in many countries all over the world. The company was in part named after Starbuck, a character in Moby-Dick, as well as a turn-of-the-century mining camp on Mount Rainier, Starbo. Its insignia is a stylized two-tailed siren.
In addition to brewed coffee and espresso beverages, Starbucks shops also serve tea and bottled beverages, pastries, and ready-to-eat sandwiches. Stores in Seattle, Chicago, and other cities are experimenting with hot breakfast options such as ham, egg, and cheese on a muffin and eggs Florentine sandwiches. Some Starbucks stores are inside other retail locations such as supermarkets and bookstores (though these stores are not owned or operated by the company). As a general rule, Starbucks does not offer promotional prices on its products, which tend to be higher than those of competitors[citation needed].
Contents
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* 1 History
o 1.1 Name and logo
* 2 Inside Starbucks
o 2.1 Cup Sizes
o 2.2 Language
o 2.3 Staffing
o 2.4 Marketing
* 3 Other products
o 3.1 Hear Music
o 3.2 Starbucks Entertainment
* 4 Criticism and controversy
o 4.1 Globalization
o 4.2 Religious groups
o 4.3 Trademark litigation
o 4.4 Labor disputes
o 4.5 Product sabotage
* 5 See also
* 6 References
* 7 External links
[edit]
History
The original Starbucks store in Seattle's Pike Place Market
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The original Starbucks store in Seattle's Pike Place Market
The first Starbucks was opened in Seattle in 1971 by three partners—English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The three were inspired by Alfred Peet, whom they knew personally, to open their first store in Pike Place Market to sell high-quality coffee beans and equipment. This location is still open today, though it is not in the same exact location it was when it opened. The original Starbucks location was at 2000 Western Avenue from 1971 to 1976. That store then moved to 1919 Pike Place. During their first year of operation, they purchased green coffee beans from Peet's, then began buying directly from growers.
Entrepreneur Howard Schultz joined the company in 1982, and, after a trip to Milan, suggested that the company sell coffee and espresso drinks as well as beans. The owners rejected this idea, believing that getting into the beverage business would distract the company from its focus. To them, coffee was something to be prepared in the home. Certain there was much money to be made selling drinks to on-the-go Americans, Schultz started the Il Giornale coffee bar chain in 1985.
In 1984, the original owners of Starbucks, led by Baldwin, took the opportunity to purchase Peet's. (Baldwin still works there today.) In 1987 they sold the Starbucks chain to Schultz's Il Giornale, which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened its first locations outside Seattle in Vancouver, British Columbia, Canada (at Waterfront Station) and Chicago, Illinois that same year. The first Starbucks location outside of North America opened in Tokyo in 1996, and Starbucks now has outlets in 30 additional countries. Starbucks entered the UK market in 1998 with the acquisition of the then 60-outlet Seattle Coffee Company, re-branding all its stores as Starbucks.
A Starbucks coffee shop in Leeds, United Kingdom
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A Starbucks coffee shop in Leeds, United Kingdom
By the time of its initial public offering on the stock market in 1992, Starbucks had grown to 165 outlets. In April 2003, Starbucks added nearly that many new outlets in a single day by completing the purchase of Seattle's Best Coffee and Torrefazione Italia from AFC Enterprises, bringing the total number of Starbucks-operated locations worldwide to more than 6,400. Counting stores not owned by the company, there are currently more than 10,800 Starbucks locations worldwide. In more than one city, there are actually Starbucks stores located across the street from each other. As of 2006, none are located in Italy, the country where Schultz found his original inspiration for Il Giornale.
Starbucks' success in the U.S. market has often, though not always, been replicated around the world; it has faced competition in markets which are already saturated with coffee products.
Currently the members of the company's board of directors are Jim Donald, Barbara Bass, Howard Behar, Bill Bradley, Mellody Hobson, Olden Lee, Greg Maffei, Howard Schultz, James Shennan, Javier Teruel, Myron Ullman, and Craig Weatherup. The store has several franchised locations.
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Name and logo
The original Starbucks logo.
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The original Starbucks logo.
According to Howard Schultz's book Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time, the name of the company was derived from Moby-Dick, although not in as direct a fashion as many assume. Gordon Bowker liked the name "Pequod" (the ship in the novel), but his creative partner Terry Heckler objected: "No one's going to drink a cup of Pee-quod!" Heckler suggested "Starbo," the name of a mining camp on Mount Rainier. Combining the Moby-Dick idea with "Starbo" resulted in the company being named for the Pequod's first mate, Starbuck.[3]
The company logo is a two-tailed siren. The logo has been streamlined over the years. In the first version, the Starbucks siren had bare breasts and a fully-visible double fish tail. In the second version, her breasts were covered by hair, but her navel was still visible, and the fish tail was cropped slightly. In the current version, her navel and breasts are not visible at all, and only vestiges remain of the fish tails. The original logo can still be seen on the Starbucks store in Seattle's Pike Place Market.
At the beginning of September 2006, Starbucks temporarily reintroduced their original brown logo on paper hot beverage cups. Starbucks has stated that this was done to show the company's heritage from the Pacific Northwest and to celebrate 35 years of business, however the vintage logo has sparked some controversy due to the siren's bare chest.[4] Recently, an elementary school principal in Kent, Washington was reported as asking teachers to "cover up" the mermaid of the retro cups with a cup sleeve of some kind. [5]
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Inside Starbucks
Vanilla flavoured Frappuccino and New York cheese cake in Starbucks in Stuttgart, Germany.
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Vanilla flavoured Frappuccino and New York cheese cake in Starbucks in Stuttgart, Germany.
Starbucks stores serve a variety of brewed coffees, which change on a weekly basis in order to provide customers with an easy way to sample a variety of coffees and blends. It also serves an array of other hot drinks, both espresso-based (like lattes and cappuccinos) and non-espresso based (like hot chocolate, steamed cider, and "cremes," Starbucks' term for steamed milk with various flavored syrups added). During winter months the hot drinks are the main staple for Starbucks. However, during the warmer months most of its revenue does not come from coffee, but from blended products that combine coffee or other flavors with large amounts of milk, sugar, and/or granulated ice.[citation needed]
Starbucks' whole-bean coffee is roasted in one of four roasting plants, located in Kent, Washington; York, Pennsylvania; Carson Valley, Nevada; and Amsterdam, Netherlands. These whole beans are packaged shortly after roasting and are shipped in air-tight bags which incorporate a pressure valve allowing the beans to continue to emit gasses after packaging. Whole beans, and some varieties of packaged pre-ground beans, are available for purchase at all Starbucks store locations and in many grocery stores.
Starbucks is known for the jargon of its menu, substituting "tall," "grande," and "venti" (Italian for "twenty") for the more traditional "small," "medium," and "large" (the smallest size, the 8 oz. "short," can be ordered at any Starbucks, but is not listed on North American menus). Additionally, as in all coffee shops, most coffee drinks can be customized in some way (e.g. using skimmed milk instead of whole milk for a "nonfat" option, or mixing regular and decaffeinated coffee to make a "half-caf"). Flavored syrups and whipped cream can be added; cappuccinos can be made with more foam ("dry") or less foam ("wet"). Other options include "extra hot" and "soy."
Main article: Frappuccino
Starbucks is known for its signature Frappuccino, a flavored drink of coffee, milk and sugar blended with ice. The name is a portmanteau of “frappe” and “cappuccino,” and was introduced in 1995.
Starbucks Headquarters. Seattle, Washington
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Starbucks Headquarters. Seattle, Washington
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Cup Sizes
Customers can choose from one of four cup sizes for hot drinks, or one of three cup sizes for cold drinks (including Frappuccinos):
Starbucks cup sizes Size name Volume of hot beverage Volume of iced beverage
Short 8 oz. -
Tall/Iced Tall 12 oz. 12 oz.
Grande/Iced Grande 16 oz. 16 oz.
Venti/Iced Venti 20 oz. 24 oz.
In Quebec, Canada, the Short size is referred to as piccolo, while the Tall size is referred to as mezzo, continuing the Italian naming trend. Typically, Short is not displayed as a size on the menu.
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Language
The lingo used at Starbucks is designed for efficient communication between employees and with customers while ordering drinks or "marking the cups." There is a prescribed order in which to say each modifier, ending with the name of the drink itself. Ordering a drink begins with whether or not the drink is iced, if it is decaffeinated (or half decaffeinated), the number of shots of espresso (if different from the standard recipe for that drink), the size of the cup, any flavoring added, the kind of milk requested, (eg. skimmed milk, organic milk, half and half cream, whipping cream, or soy milk), any additional customizations (eg. no foam, extra hot) and finally the name of the beverage.
For example, the order of an iced latte, venti, with vanilla syrup, decaf, with whipped cream, skimmed milk, and an extra shot, would be called as "Iced, decaf, quad Venti, vanilla, non-fat, with whip, latte."
If not otherwise specified, drinks are made with caffeinated espresso and whole milk. The basis for all "bar" or espresso based drinks is the latte, which consists of espresso, steamed milk, and a cap of foamed milk. From there exist variations such as the cappuccino (with espresso, half foam, and half steamed milk), and the caramel macchiato (with vanilla syrup, steamed milk, a cap of foamed milk, shots of espresso poured over top, and caramel sauce in a cross-hatch pattern).
Recently, Starbucks has started training Barista partners to take the name of the customer, and put it on the cup. That way they can say "I have a Venti Latte for Jay", or whomever it might be. It just depends on whose name is on the cup.
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Staffing
There are usually two to four baristas (or "partners," as Starbucks employees are called) in each store at any one time with at least one being a Shift Supervisor, Assistant Manager or Store manager, depending on the business volumes. Baristas in black aprons are "Coffee Masters". These aprons are worn by partners who have completed the Coffee Master course and achieved a high standing during their certification, which educates partners in not only the tasting, but also growing, roasting and purchasing (including fair trade practices) aspects of the coffee industry.
It was policy in the past that a partner be a shift supervisor, assistant store manager, or store manager in order to become a Coffee Master. Starbucks recently has changed this stance and now allows all partners the opportunity to become a Coffee Master.
Most stores are internally divided into the floor, where the baristas work and serve customers, the back of house, which consists of the storeroom, and the cafe which consists of the cafe itself and the bathrooms, and so on.
Behind the counter, the floor is divided into three distinct sections for "deployment" or working in stations throughout one's shift. These are:
1. The POS (Point of Sale or cash register): This is where orders are placed, called, and paid for. Pastries are served from here as well as brewed coffees and teas.
2. The Beverage Station: This area is usually broken down into two sections, the Espresso Bar and the Cold Beverage Station. The Espresso Bar is where most hot beverages are made, even if they don't require espresso shots, except for the Coffee of the Week and brewed tea. The Cold Beverage Station is where Frappuccino drinks and iced teas and coffees are made and served. If there is a high demand for cold drinks there may be a barista specifically for the Cold Beverage Station, otherwise a single barista handles the whole Beverage Station, with help from the Floater barista if necessary. Many newer stores have a dual-Espresso Bar setup, sometimes called a "W" bar or a "Bent" bar, named for the shapes the bars create when seen from the customers' perspective. These are used at higher volume stores (mostly those with Drive-thrus) so multiple Baristas can be on bar at once during the heavy rushes.
3. The Digital Brewer and Pastry Case: These are usually placed close to each other on the opposite side of the register from the Espresso Bar. The Digital Brewer is where all the Coffees of the Week are brewed and served. This is never a primary position, unlike the others, since it is a low-demand, low-difficulty station, and is usually handled by the barista operating the register or by the Floater.
Starbucks on the place de l’Odéon, Paris, France
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Starbucks on the place de l’Odéon, Paris, France
The three primary roles that baristas take on (and swap off on during a shift) are thus POS (register), beverages (making and serving drinks), and floater (miscellaneous duties including making Frappuccino beverages and "café", the duty of cleaning tables and otherwise taking care of the customer area.)
Some stores might also have a barista at the Frappuccino bar or an inventory barista at the back of the store. Busy stores might even have two baristas at one station, especially at the espresso bar on busy days or at the Frappuccino station during the summer. If the Starbucks has a drive-through, it may have one to four baristas assigned solely to serve customers in drive-through. Drive-through stores will always have higher staffing levels simply because of the unique situation that is created by trying to serve both cafe and DT customers at once.
A regular shift's workers include the baristas and the shift supervisor, often a more experienced barista promoted to the position. The shift supervisor (just "shift" for short) is in charge of running the store when the manager is not working. The "shift" also will take on the role of floater as necessary to resolve bottlenecks.
Starbucks offers full benefits such as health and vision insurance as well as stock-option grants and 401k with matching to employees who put in as few as 20 hours a week. In 2006 Starbucks was voted the twenty-ninth best company to work for in the United States.[6] Previously, in 2005, it was voted the eleventh best.
Prices are reportedly being raised by $0.05 USD[7], on the begining of the new fiscal year, October, 2, 2006. This is reportedly because of energy costs that are on the rise, however others have reported that this may be due to the California minimum wage going up.
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Marketing
Starbucks' marketing strategy involves positioning the local Starbucks outlet as a "third place" (besides home and work) to spend time, and the stores are designed to make this easy and comfortable. The café section of the store is often outfitted with comfortable stuffed chairs and tables with hard-backed chairs. There are ample electrical outlets providing free electricity for patrons using or charging their portable music devices or laptop computers. Most stores in the U.S. and in some other markets also have wireless Internet access (although this access is not free, as it is in some independent coffee shops).
Starbucks in Doha, Qatar.
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Starbucks in Doha, Qatar.
The company is noted for its non-smoking policy at all its outlets, despite predictions that this would never succeed in markets such as Germany, where there otherwise are few restrictions on smoking. A single outlet in Vienna, which has a smoking room separated by double doors from the coffee shop itself, is the closest the company has come to making an exception. Starbucks generally does not prohibit smoking in outside seating areas. According to the company, the smoking ban is to ensure that the coffee aroma is not adulterated. The company also asks its employees to refrain from wearing strong perfumes for similar reasons.
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Other products
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Hear Music
Main article: Hear Music
Starbucks' second Hear Music store at the South Bank development adjacent to the River Walk in downtown San Antonio, Texas.
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Starbucks' second Hear Music store at the South Bank development adjacent to the River Walk in downtown San Antonio, Texas.
Hear Music is the brand name of Starbucks' retail music concept. Hear Music began as a catalog company in 1990 and was purchased by Starbucks in 1999.
The Hear Music brand currently has three components: the music that each location plays and the accompanying XM radio channel (XM 75); in-store CD sales, including Starbucks exclusives; and specially branded retail stores.
The first Starbucks Hear Music Coffeehouse is in Santa Monica, California on the Third Street Promenade, and two more locations recently opened, one opened December 2005 on the River Walk in San Antonio and another opened in February 2006 in Miami, Florida's South Beach. There is also a Hear Music Store in Berkeley, California. Ten Starbucks locations in Seattle and Austin, Texas also have Hear Music "media bars," kiosks that lets customers create their own mix CDs.
The music section in Chapters, a Canadian bookstore chain, was at one time a licensed version of the Hear Music concept, but Chapters no longer uses the brand name.
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Starbucks Entertainment
Starbucks recently entered the film business. Starbucks Entertainment is one of the producers of the 2006 film Akeelah and the Bee. Retail stores heavily advertised the film before its release.
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Criticism and controversy
Starbucks has found itself the target of criticism and the subject of controversy as it has grown.
Starbucks in Seoul, Korea
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Starbucks in Seoul, Korea
Starbucks is available at the Brandenburg Gate in Berlin, Germany. July 2003.
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Starbucks is available at the Brandenburg Gate in Berlin, Germany. July 2003.
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Globalization
According to the company fact sheet, as of August 2006, Starbucks had 6,750 company-operated outlets worldwide: 5,393 of them in the United States and 1,357 in other countries and U.S. territories. In addition, the company has 5,034 joint-venture and licensed outlets, 2,952 of them in the United States and 2,082 in other countries and U.S. territories. This brings the total locations (as of September 1, 2006) to 11,784 worldwide. Stores are now found in Australia, Austria, Canada, Bahamas, Bahrain, Chile, China, Cyprus, France, Germany, Greece, Hong Kong, Indonesia, Ireland, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, New Zealand, Oman, Peru, Philippines, Puerto Rico, Qatar, Saudi Arabia, Singapore, South Korea, Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, and the United Kingdom.
Starbucks has come to be regarded by some, particularly in the anti-globalization movement, as symbolic of the problems posed by globalization. Several activism groups maintain websites criticizing the company's fair-trade policies, labor relations, and environmental impact, and hold it as a prime example of what they see as U.S. cultural and economic imperialism. Several Starbucks locations were vandalized during the WTO meeting held in Seattle in late 1999. Although no organization claimed responsibility for the vandalism, the anarchist circle-A sign was spraypainted on stores.[8] (see also WTO Ministerial Conference of 1999 protest activity).
Although it has endured much criticism for its purported monopoly on the global coffee-bean market, Starbucks only accounts for roughly two percent of global coffee production[1]. In 2000, the company introduced a line of fair trade products[9] and now offers three options for socially conscious coffee drinkers. According to Starbucks, they purchased 4.8 million pounds of Certified Fair Trade coffee in fiscal year 2004 and 11.5 million pounds in 2005. They have become the largest buyer of Certified Fair Trade coffee in North America (10% of the global market) and the only company licensed to sell Certified Fair Trade coffee in 23 countries.[10] Transfair USA,[11] the only third-party certifier of Fair Trade Certified coffee in the United States, has noted the impact Starbucks has made in the area of Fair Trade and coffee farmer's lives by saying:
Starbucks
Since launching FTC coffee in 2000, Starbucks has undeniably made a significant contribution to family farmers through their rapidly growing FTC volumes. By offering FTC coffee in thousands of stores, Starbucks has also given the FTC label greater visibility, helping to raise consumer awareness in the process.
FTC coffee now represents 3.7% of all Starbucks coffee, up from less than 1% when the company began to offer FTC. Starbucks, unlike many companies with whom we partner, makes FTC volume information public.[12]
Starbucks
Groups such as Global Exchange are calling for Starbucks to further increase its sales of fair trade coffees. However, fair trade certification can cost $20 to $30 thousand, and many growers are unwilling or unable to pay for certification. As a result, the supply of fair trade coffee is increasing slowly, and Starbucks sometimes has difficulty finding fair trade growers that can meet its quality standards.
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Religious groups
Starbucks at Queens Plaza, Brisbane, Queensland, Australia.
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Starbucks at Queens Plaza, Brisbane, Queensland, Australia.
In 2005, the company began to print quotations on its paper coffee cups. One of these drew criticism from fundamentalist Christian groups including Concerned Women for America who seek to "bring Biblical principles into all levels of public policy".[13] The controversial quote was:
Starbucks
The Way I See It #43: My only regret about being gay was that I repressed it for so long. I surrendered my youth to the people that I feared when I could have been out there loving someone. Don't make that mistake yourself. Life's too damn short.
Starbucks
Armistead Maupin, author of the Tales of the City series and the novel The Night Listener.
Although the other cups promoted a diverse range of ideas, mostly fundamentalist Christian critics singled out this quotation for allegedly promoting homosexuality. The Starbucks at Baylor University in Waco, Texas, removed cups featuring the Maupin quote after complaints from a staff member. Starbucks, however, has no plan to pull the cup from the program. Concerned Women for America have also objected to Starbucks including Planned Parenthood in their employee matching funds program.[14]
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Trademark litigation
Kieron Dwyer's Starbucks parody
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Kieron Dwyer's Starbucks parody
In 2000 San Francisco cartoonist Kieron Dwyer was sued by Starbucks for copyright and trademark infringement after creating a parody of its mermaid logo. Starbucks won a preliminary injunction prohibiting Dwyer from selling items bearing his version of the trademark. The case was later settled.
Starbucks also made headlines in Canada for its litigation against Haida Bucks[15], an indigenous-owned coffee house and store located in Masset, a small town on the remote island of Haida Gwaii. The case was dropped by Starbucks after the owners of Haida Bucks resisted Starbucks' attempt at litigation.
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Labor disputes
Starbucks baristas in Canada[16], Australia and New Zealand[17], and the United States[18] belong to several unions, including the UFCW[19], the CAW, the IWW and Unite Union.
Since 2004, Starbucks employees at several locations in New York City and Chicago have joined the Industrial Workers of the World labor union, calling themselves the IWW Starbucks Workers Union. Starbucks does not recognize the union as a bargaining agent. Several employees have claimed they were retaliated against for union activity. On March 7, 2006, the Starbucks Workers Union and Starbucks agreed to a National Labor Relations Board settlement in which three Starbucks employees were granted almost $2,000 in back wages, two fired employees were offered reinstatement, and disciplinary warnings and negative performance reviews against several employees were removed from their records. The agreement did not require Starbucks to admit to violating the National Labor Relations Act.[20][21][22]
Starbucks in Tenmabashi Station, Osaka, Japan
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Starbucks in Tenmabashi Station, Osaka, Japan
The world's first Starbucks strike happened in Auckland, New Zealand on November 23, 2005[23]. Organised by Unite Union, it was the opening industrial action of the Supersizemypay.com campaign, which seeks secure hours, a minimum wage of NZ$12 an hour, and the abolition of youth rates. The strike involved several branches. The campaign continued until March 2006, when the company settled with the Union, resulting in pay increases, increased security of hours, and an improvement in youth rates.[24]
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Product sabotage
Starbucks has also been accused of "product sabotage" by hiding its "short cappuccino" from its public menu. Short cappuccino is smaller (8 ounces), cheaper than their smallest size on the menu, the "tall". The short cappuccino has the same amount of espresso as the 12-ounce tall (1 oz.), which, according to several media accounts, leads to a bolder and better coffee taste.[25] [26] However, it should be noted that a Grande Cappuccino will have the same taste as a short cappuccino because it has the same ratio of espresso to steamed milk and foam. A short having one shot of espresso (1 oz.) is eight ounces in size, meaning 7 oz. of milk and foam. A grande cappuccino having two shots of espresso (2 oz) is sixteen ounces in size meaning 14 oz. of milk and foam, which has the same 1:7 ratio of espresso to milk and foam that a short cappuccino has.
2006-09-29 13:59:31
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answer #1
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answered by Girly♥ 7
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