Howard Schultz
👤 SpeakerAppearances Over Time
Podcast Appearances
And I still am friendly with Jim Sinegal today. I mean, your companies rhyme in so many ways. That's not surprising at all. I want to talk a little bit, before we get to the IPO here, about what the strategy was when you expanded market by market. Did you try to sprinkle a few stores in and see? Did you try to move into a market with force and be the dominant coffeehouse chain in that city?
And I still am friendly with Jim Sinegal today. I mean, your companies rhyme in so many ways. That's not surprising at all. I want to talk a little bit, before we get to the IPO here, about what the strategy was when you expanded market by market. Did you try to sprinkle a few stores in and see? Did you try to move into a market with force and be the dominant coffeehouse chain in that city?
And in particular, it could be worth talking about Boston.
And in particular, it could be worth talking about Boston.
Well, Boston's an anomaly because of the acquisition. But Bihar was so strident in not expanding to multiple markets at once. And he was 100% right. And so we went to Chicago. Went to LA. And we stayed there for quite a while. Went to Portland. We weren't ready for New York City in terms of the issues there. But we were very diligent. You went to DC first before New York City.
Well, Boston's an anomaly because of the acquisition. But Bihar was so strident in not expanding to multiple markets at once. And he was 100% right. And so we went to Chicago. Went to LA. And we stayed there for quite a while. Went to Portland. We weren't ready for New York City in terms of the issues there. But we were very diligent. You went to DC first before New York City.
We were not expanding to multiple markets until we had enough evidence in the existing market that we had success. And we weren't going to compound the growth in another market with problems that we're having in the existing one. And I think that's all be-her.
We were not expanding to multiple markets until we had enough evidence in the existing market that we had success. And we weren't going to compound the growth in another market with problems that we're having in the existing one. And I think that's all be-her.
he was he was managing all the operations boston was very different we had a very strong high quality competitor called the coffee connection in boston with a owner operator in george howell who was not unlike alfred pete kind of a gospel of coffee culture on the east coast And we knew Boston was going to be tough for Starbucks to enter. We also had Dunkin' Donuts there.
he was he was managing all the operations boston was very different we had a very strong high quality competitor called the coffee connection in boston with a owner operator in george howell who was not unlike alfred pete kind of a gospel of coffee culture on the east coast And we knew Boston was going to be tough for Starbucks to enter. We also had Dunkin' Donuts there.
Like a lot of the good real estate was taken by the coffee connection, right?
Like a lot of the good real estate was taken by the coffee connection, right?
And so George and I never saw eye to eye. But it was clear that if we came to Boston in a significant way, we were going to impact his business. And I think to his credit, he was willing to sell. So Coffee Connection was the first acquisition. And we had to tread very lightly after the acquisition because of the loyalty and be careful with the name and solicit George's help and advice.
And so George and I never saw eye to eye. But it was clear that if we came to Boston in a significant way, we were going to impact his business. And I think to his credit, he was willing to sell. So Coffee Connection was the first acquisition. And we had to tread very lightly after the acquisition because of the loyalty and be careful with the name and solicit George's help and advice.
And also, we needed him to kind of validate for us what we were trying to do.
And also, we needed him to kind of validate for us what we were trying to do.