Starbucks in 2018: Striving for Operational Excellence and Innovation Agility
Rev. ConfirmingRevisedDesignFirstTest Pages File CASE 29 Starbucks in 2018: Striving for Operational Excellence and Innovation Agility Arthur A. Thompson, The University of Alabama ince its founding in 1987 as a modest nine-store friends either at community tables or in lounge operation in Seattle, Washington, Starbucks areas around two fireplaces. Shad become the premier roaster, marketer, • Open 1,000 Starbucks Reserve stores worldwide and retailer of specialty coffees in the world, with to bring premium experiences to customers and over 28,200 store locations in 76 countries as of promote the company’s recently-introduced April 2018 and annual sales that were expected Starbucks Reserve coffees; these locations offered to exceed $24 billion in fiscal year 2018, ending a more intimate small-lot coffee experience and September 30. In addition to its flagship Starbucks gave customers a chance to chat with a barista brand coffees and coffee beverages, Starbucks’ other about all things coffee. The menu at Starbucks brands included Tazo and Teavana teas, Seattle’s Reserve stores included handcrafted hot and cold Best Coffee, Evolution Fresh juices and smoothies, Starbucks Reserve coffee beverages, hot and cold and Ethos bottled waters. Starbucks stores also sold teas, ice cream and coffee beverages, packages of snack foods, pastries, and sandwiches purchased Starbucks Reserve whole bean coffees, and an from a variety of local, regional, and national suppli- assortment of small plates, sandwiches and wraps, ers. In January 2107, Starbucks officially announced desserts, wines, and beer. There were four types of it would: brewing methods for the coffees and teas. • Open 20 to 30 Starbucks Reserve™ Roasteries and • Transform about 20 percent of the compa- Tasting Rooms, which would bring to life the the- ny’s existing portfolio of Starbucks stores into ater of coffee roasting, brewing, and packaging for Starbucks Reserve coffee bars.
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