ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Starbucks Coffee 1971-87

Updated on May 21, 2012
The first Starbucks-1971
The first Starbucks-1971
Howard Schultz and his Starbucks
Howard Schultz and his Starbucks

Starbucks began in 1971, in Seattle. Starbucks ordered its coffee beans from Peet's Coffee, located in Berkeley, CA. Owner's Baldwin and Bowker experimented with Alfred Peet's roasting procedures and came up with their own blends and flavors. A second Starbucks store was opened in 1972. By 1981, there were four Starbuck coffeehouses. That is when Howard Schultz started to work at one of them in on-the-job training. He learned all the facets of the operation but had his own ideas based upon his visits to Milan, Italy, and how Italian coffeehouses were-like a gathering place to people to hang and drink coffee freshly brewed. Once he had learned everything from the original Starbuck owners, he left.

It was back in 1985, when a doctor, Ron Margolis, had to make a serious investment decision. The doctor had just made a killing in a recent stock market trade, He had always dreamed of owning a red Ferrari sports car that was for sale for six figures. While expensive, even then, the Doc had the surplus income from the stocks. Ron also tried to get other doctors, 40 of them, to invest. None would. A coffeehouse was too risky. As he talked it over with his wife, the wife suggested that her husband tal to a nice, young, Jewish boy, Howard Schultz. Howard was not a boy but a married man. He had been working at a local coffee house in Seattle that provided only one type of coffee, you know, strong kick-ass stuff. The coffeehouse was nothing special but sold other pastries and such. It was there that Howard had the idea that probably had occurred to many others, to start a more upscale shop based on Italian coffee houses. He would call it, Il Giornale. It first opened in 1986. A second one in 1987. But Howard wanted to expand and offered the owners of Starbucks, 3.8 million for the few stores and its inventory and name. This was done in August, 1987. One of the original owners, Albert Peet, started to expand his already liked chain, Peet's Coffee in California.

Ron was one of the critical investors that allowed Howard the ability to buy the Starbucks stores in Seattle. He loaned him $225,000. Since then, Ron has tried 20 times to invest for profit in various business arrangements, of which, only three have paid off. His loan to Howard greatly paid off, it had made him tens of millions! Yet, in 1985, it was gamble and he had to give up something he REALLY wanted-a Ferrari.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)