Howard Schultz

The basic idea early on, given the beverages velocity in AM, was to find a corner location in an urban setting where we could physically see pedestrian traffic in a significant way. And so we would go to cities and count This physically count, how many people are walking by, what hours they're walking by. And once we had a model of success, it became clear to us what we needed.

The basic idea early on, given the beverages velocity in AM, was to find a corner location in an urban setting where we could physically see pedestrian traffic in a significant way. And so we would go to cities and count This physically count, how many people are walking by, what hours they're walking by. And once we had a model of success, it became clear to us what we needed.

And also once we became aware of co-tenancies of certain tenants that would be interesting to us, we also were very intrigued with being next to a grocery store early on because of the frequency in which people were buying food. Anytime we were in an office building where there was three to 4,000 people in a building, that was a home run.

And also once we became aware of co-tenancies of certain tenants that would be interesting to us, we also were very intrigued with being next to a grocery store early on because of the frequency in which people were buying food. Anytime we were in an office building where there was three to 4,000 people in a building, that was a home run.

But then it became very clear that there were locations that we never imagined we could be in that became wildly successful and just opened up an aperture to us that basically we had opportunities to do things that were not traditional for a retailer. Now, the other thing which we haven't talked about is a decision I made early on not to franchise, which I'm surprised you haven't mentioned that.

But then it became very clear that there were locations that we never imagined we could be in that became wildly successful and just opened up an aperture to us that basically we had opportunities to do things that were not traditional for a retailer. Now, the other thing which we haven't talked about is a decision I made early on not to franchise, which I'm surprised you haven't mentioned that.

Oh, well, there were franchises. But let me explain that if I can, which is all part of the real estate strategy. I never believed that we could build, maintain, and elevate the culture of the company, which I viewed as the thing in a franchise system where we had individual franchisees who had their own subculture.

Oh, well, there were franchises. But let me explain that if I can, which is all part of the real estate strategy. I never believed that we could build, maintain, and elevate the culture of the company, which I viewed as the thing in a franchise system where we had individual franchisees who had their own subculture.

And so even though there was pressure early on because of the cost of capital and we didn't have a lot of money, To franchise, we'd have no CapEx. I said, no, we resisted that. And I don't think we'd be having this conversation if Starbucks was a franchise system. Because McDonald's, extraordinary company, but they're a commodity-based product.

And so even though there was pressure early on because of the cost of capital and we didn't have a lot of money, To franchise, we'd have no CapEx. I said, no, we resisted that. And I don't think we'd be having this conversation if Starbucks was a franchise system. Because McDonald's, extraordinary company, but they're a commodity-based product.

Yeah, and that's why I don't want Starbucks to become transactional. Coffee is personal. The biggest magic and the lightning in the bottle is when you go to Japan or Shanghai or Malaysia and you see the culture there. in a way that you just can't believe. Like, how did it happen that we were able to transfer this to another country, different language, different culture, different policy?

Yeah, and that's why I don't want Starbucks to become transactional. Coffee is personal. The biggest magic and the lightning in the bottle is when you go to Japan or Shanghai or Malaysia and you see the culture there. in a way that you just can't believe. Like, how did it happen that we were able to transfer this to another country, different language, different culture, different policy?

How did we do it?

How did we do it?

That's actually quite befuddling to me, because so many food and beverage concepts do not transfer geographies.

That's actually quite befuddling to me, because so many food and beverage concepts do not transfer geographies.

And I think it's transferred because young people around the world, we all want the same thing. They want opportunity. They want to be respected. They want dignity. They wanna make their parents proud. They wanna work for a company that they believe in. And when I see what we've done around the world, I'm moved emotionally because the humanity I speak of is universal.

And I think it's transferred because young people around the world, we all want the same thing. They want opportunity. They want to be respected. They want dignity. They wanna make their parents proud. They wanna work for a company that they believe in. And when I see what we've done around the world, I'm moved emotionally because the humanity I speak of is universal.

That's why when I came back from China, what I said was, I just wanna say something about China and the US. I know all the rhetoric and the propaganda about our two countries. But what I see is that we have so much more in common than we have differences. And that should be the theme of the world right now.

That's why when I came back from China, what I said was, I just wanna say something about China and the US. I know all the rhetoric and the propaganda about our two countries. But what I see is that we have so much more in common than we have differences. And that should be the theme of the world right now.