move to semiautomatic machines, 2000, 121
Essential Baking Company, Seattle, 279
Ethics. See also Social responsibility
in coffee sourcing,* 19–20, 72
at core of Starbucks’ values, 5
Ethos Water, 19, 119, 189
Etkin, Billy, 227–28
Expansion and growth
abroad, 306
capability to refocus on, 2009, 301
in China, 322
concerns about mentality of, 22, 23, 35
in early 2000s, 17, 18, 20
innovation, 35
new blueprint for, 315–18
overview of initiatives, 321–23
questions and strategy upon return as ceo, 65–66, 75
unique growth model of Starbucks, 317–18
F
Facebook, 214–16, 265–66, 298, 320
Fairtrade, 19–20, 78, 107, 119, 204, 206, 289, 291, 323
Farmer support centers, 289, 323
Fei, Helen (partner), 303, 304–5
Fey, Tina, 214
15th Avenue Coffee & Tea, Seattle,* 278–80
Financial analysts
announcement of return as ceo to, 63–66
biennial conference with, 2008, 223–36, 326
investment bloggers, 141
reactions from, 30, 42, 64, 66, 90–91, 146, 158, 326
Financial performance. See also Same-store sales data (comps); Stock prices
at biennial analyst conference, 2008, 230
first-quarter earnings, 2008, 88–91
fourth-quarter, 2008, 218
negative comps in December, 2007, 49
net earnings, 2007, 41
operating margin, 2009, 298
operating margin, 2010, 315
prediction for 2009, 218
revenue, 2000, 16
revenue, 2005, 20
revenue, 2007, 41
revenue, 2008, 218
revenue, 2010, 315
second-quarter earnings, 2008, 144, 145, 164–65
third-quarter earnings, 2008, 179
third-quarter earnings, 2009, 297–301
Financial Times, 70
Fingeroth, Jim, 43–45, 48
First and Pike store, Seattle,* 275–76
First-quarter earnings conference call, 2008, 88–90
Fiscal reports. See Financial reports
Fisher, Robert, 222
Fleischmann, Patty, 222
Fleischmann, Steve, 222
Food-service business, 234
Forbes.com, 159
Ford Motor Company, 223
Fortune, 159, 260
“$4 latte,” 146, 212
Franchising consideration, 174–75
Frappuccino, 76, 164, 240, 245–46, 307, 308
Fukuda, Yukiko (partner), 116
Full City roast, 84
G
Gaba, Hal*
Gale, Tony (partner), 277
GameStop, 267
Gange-Harris, Cindy (partner), 180
Gass, Michelle (senior leadership team),* 37, 72–73, 105–6, 133, 140, 143–45, 178, 195–98, 203, 205, 213, 220, 225–27, 230–31, 255–56, 268, 307–8, 316
General Motors, 223
Genius Loves Company album,* 21
Gentilly neighborhood, New Orleans, 199
Gibbons, Peter (senior leadership team),* 105, 178, 185–90, 213, 219, 225, 254
Gilbert, Sarah, 141
Gillett, Stephen (senior leadership team),* 177, 205, 225, 266–69
Glass, John, 42
Glickman, David, 73
Global Fund, 203
Global Green USA, 19
Global leadership summit, Seattle, March 2008, 102–15
Gore, Al, 18
Gorlick, Harold, 129
Greenberg, Herb, 70–71
Greenberg, Marc, 65, 326
Greenspan, Alan, 130–31, 223
Grinding beans, 86–87, 132, 135, 319
H
Hanley, Dervala (senior leadership team),* 326
Hansberry, Jeff (senior leadership team),* 317, 325
Hay, Dub (partner), 105, 197, 313–14
Health-care benefits, 13, 31, 51, 63, 67, 72, 119, 148, 293–94
Heifer International, 293–94
Henninger, Daniel, 163
Herndon, Wanda, 28, 46, 51, 60, 100, 143, 195, 225
Heydon, Scott (partner), 281–82, 284
Hike for KaTREEna, 199
Hobson, Mellody (board member),* 220, 301
Hollygrove neighborhood, New Orleans, 199
Holmes, Kalen (senior leadership team),* 325–26
Home Depot, 89
Hornall Anderson, 256–57
Hostek, Lauren, 222
Hotel Rwanda, 18
Howell, Josh (partner), 283–84
Hulett, Randy, 91
Human connections. See also Community; Social responsibility
at core of Starbucks’ values, 5, 13, 23–24, 117–18, 190–91
at heart of being a merchant, 273
Jim Donald's fostering of, 20–21
in Milan coffee bars, 10
in mission statement, 113
partners’ generosity of spirit, 116–17
relevance during recession, 159
in Seven Big Moves, 107, 320–21
Hurstak, Gina (partner), 207
Hyatt hotels, 18
I
IdeaStorm site, 124
Il Giornale coffee bars, 10–11, 44, 56, 251–252
An Inconvenient Truth, 18–19
Independent coffee houses, competition from, 212, 277
Innovation
author's encouragement of, 28, 32, 87, 110–11, 175, 240–42, 261, 315
in China, 306–8
Clover coffee machine,* 91–95, 135, 142, 309, 319
commitment to, 56, 65
Digital Ventures business unit, 268, 269–70, 320–21
Frappuccino, 76, 164, 240
future plans for, 315–16
health-related, 166–67
Lean techniques, 281–85, 321
Mastrena espresso machine, 121–22, 131–32, 309, 319
Mazagran carbonated coffee drink, 239–40
MyStarbucksIdea.com, 135
Pike Place Roast,* 81–82, 85–87, 135, 142–44, 319
“Responsibly Grown. Ethically Traded.
Proudly Served.” marking, 132–33
rewards program, 133–34, 165–66, 263
in Seven Big Moves, 107–8, 319
Sorbetto, 140–41, 165, 167–69
Starbucks Digital Network,* 320–21
Starbucks Reserve coffee*
store designs,* 273–80, 322
Treat Receipt, 166, 263
VIA,* 242–61, 316, 318
Vivanno,* 167, 190, 233
Instant coffee. See also JAWS (just add water and stir); VIA
author's use during Africa trip, 246–47
defying the stigma of, 254, 257–58
development by Don Valencia, 242–43
market for, 252–53
popularity outside the US, 259
IntranetBlog.com, 142
J
Jakobsen, Laura, 256
Japan
gratitude for partner equity in, 17
Tokyo store as first outside North America, 16
VIA market potential in, 259
JAWS (just add water and stir). See also Instant coffee; VIA, 244–48, 316
Jobs, Steve, 71
Johnson, Aimee (partner), 254–57
Johnson, Kevin (board member),* 266
Jones, Tom (partner), 247
Jumpstart literacy program, 19
K
Katzenberg, Jeffrey, 222
Kavanaugh, Amy, 143
Kekst and Company. See also Fingeroth, Jim, 43–45, 296
Kent, Nancy (partner), 25, 27–58, 62, 71
Kidney donation by partner, 117
Kuchinad, Chet (partner), 45–46, 48, 145, 1
78, 222
Kurtz, Ann-Marie (partner), 131–32
L
La Marzocco espresso machines, 121
Lamb, Harriet, 289, 291–92
Lang, K. D., 129
Layoffs, 154, 156, 170–72, 174, 193, 218, 223, 263
Leadership conference, New Orleans, October 2008*
author's commitment to, 78, 192–93
author's speeches at, 201–2, 205–6
Bono's appearance at, 202–5
closing general session, 196, 201–6
costs and risks of, 193, 196
interactive galleries at, 196–98
New Orleans chosen as site of, 193
number of participants at, 194
significance and success of, 193, 206–207
street fair during, 196
volunteer events during,* 196, 198–200
Leadership summit, 2008. See Global leadership summit, Seattle, March 2008
Lean techniques, 219, 281–86, 298, 309, 321
Lear, Norman,* 210, 222
Lee, Olden (board member),* 220, 222
LEED certification,* 276, 324
Lehman Brothers, 146, 183
Levine, Jonathan, 222
Levine, Stacey, 222
Levitan, Dan, 222
LinkedIn, 321
Linnemann, Andrew (partner), 85, 135, 247–48, 313–14
Linz, Doron, 222
Linz, Kai, 222
Loans to coffee farmers, 289
Lorenzi, Aldo, 273, 275, 280–81
Lorenzi, Coltelleria G., 271–73
Loyalty program. See Rewards program
Lubars, David, 208–212
M
Maglaya, Ruben (partner), 327–28
Malanga, Mike (partner), 152–54, 161–62, 277
Mandelson, Peter, 264–65
Marinopoulos, Panos, 222
Marriott hotels, 18
Mastrena espresso machines, 121–22, 131–32, 309, 319
Mazagran carbonated coffee drink, 239–40
McCain, John, 209, 214
McCartney, Paul, 103, 129
McCormick, Pete, 222
McCutchen, Matt, 222
McDermet, Jim (partner), 185, 186
McDonald's, 62–63, 85, 146, 212, 232, 277
McPherson, Christina (partner), 289
Media reactions to events. See also Press statements
doubts about Starbucks’ future, 102
leaked memo of February, 2007, 27, 29–31
news about VIA, 258
return as ceo, 70–71
stores closing down, 158–59
stores closing for training, 4, 6
third-quarter earnings, 2009, 301, 303
VIA introduction, 259–60
Melville, Herman, 11
Memos
“The Commoditization of the Starbucks Experience” (February, 2007), 9, 23–32, 44
to Il Giornale employees, 10–11
on store closings, to partners, 157–58
Transformation Agenda Communications, 100–1
“The Transformation of Starbucks” (January, 2008), 61
Mercantile stores, 278–80, 322–23
Merrill Lynch and Company, 184
Mission Statement, 111–15 partners’ signing of*
Moby Dick, 11
Moratti, Angelo, 271–73
Mordos, Jeff, 211–12
Morgan, Todd, 222
Motley Fool, 159, 258
Mukamwiza, Immaculate, 292, 323
Muller, Liz (partner), 277
Music business. See Entertainment
MyStarbucksIdea.com, 135, 142, 166, 231, 265, 320
My Starbucks Rewards program. See Rewards program
N
Nasdaq, 50
Nelson, Brad, (partner) 214, 216
New Orleans, Louisiana.* See also Leadership conference, New Orleans, October 2008 193–96,* 198–200, 206, 324
New York Times
on fall of financial institutions, 184
as Starbucks Digital Network content, 321
on VIA, 259
Nickelodeon, 321
Nocera, Joe, 259
Nordstrom, 89
Nosler, Zander, 91–95, 135
O
Obama, Barack, 209, 263, 266
O'Brien, Linda (partner), 293
Ogawa, Chihiro (partner), 116–17
Olive Way store, Seattle,* 323
Olsen, Dave (partner), 10, 112, 242
O'Neil, Valerie (partner), 27, 62, 195
Onward
connotation of, 179
first use in Il Giornale memo, 11
use in Transformation Agenda Communications memos, 101
on volunteers’ clothing in New Orleans, 200
Open forum
about layoffs, 170–72, 176
described, 99
reinstatement of, 99
in Shenzhen, China, 303–5
after store closings announcement, 158
P
Packard, Ben (partner), 119, 125
Palace Ballroom, Seattle. See Brainstorming retreat Palin, Sarah, 209, 214
Palmer, David, 63–66, 90
Paris, France
Disney Village store, 276
opening of first store in,* 17
Partners
announcement of return as ceo to, 58–61
author's personal calls to, 99
author's sense of responsibility to, 15
Braille menu created by, 116–17
concerns about growth, 22
delivering on the unexpected by, 40
diversity among, 148
emotional connections fostered in, 117–18
Espresso Excellence Training for,* 3–7, 78, 104
galleries at leadership conference, October 2008, 198
generosity of spirit in, 116–17
health-care benefits for, 13
kidney donation by, 117
lack of training and inspiration for, 77
layoffs for non-store positions, 170–72, 174
layoffs with store closings, 154
Lean implementation by, 281, 282–84
memo on store closings to, 157–58
regarding mission statement, 113–14
number in 2008, 131
personal nature of their job, 201
reactions to memo of February, 2007, 28–29
stock option benefits for, 13, 17
volunteer service by, 323–24
volunteers in New Orleans, 2008,* 196, 198–200
Peterson, Peter G., 184
Pfeiffer, Tim (partner), 278
Pike Place Market store, Seattle,* 44, 55–57, 86, 110
Pike Place Roast*
author's first taste of, 81–82
beans ground in store for, 86–87, 135
code named Consistent Brew, 85
development of, 85–86
launch of, 142–44
origin of name, 86
positioning of, 86–87
presentation at annual shareholders’ meeting, 2008, 135
second-quarter sales, 2008, 146
success of, 319
as symbol of transformation, 87
Plan B for cost management, 218–19, 223, 286
Point of sale (POS) system, 150–51, 325
Postconsumer recycled fiber use, 118–19
Prentice, Arnie, 129
Press releases
on Espresso Excellence Training, 78
on return as ceo, 61
on store closings, July 2008, 157
(PRODUCT) RED, 203, 266, 295
Project Greenstorm, 125–27
R
Recession. See also Closing of stores, July 2008
declining sales related to, 88–89, 146
fall of financial institutions, September 2008, 183–84
layoffs related to, 154, 170–72, 174
new realities uncovered by, 223
overseas expansion slowed by, 218
&nbs
p; status in February 2009, 263
(RED)
partnership with, 203, 205, 266
(RED) Friday in stores, 294–95
Respect
earned by social responsibility, 18–19
as touchstone of Starbucks, 4–5
Retirement plans, matching of funds made discretionary, 2008, 300
Return as ceo, 42–52, 55–68
announcement to partners, 58–63
announcement to senior leaders, 57–58
author's readiness for, 52
commitment to innovation and reinvention, 56
conference call to shareholders and analysts, 63–66
Kekst and Company consultation, 42–45
Onward: How Starbucks Fought for Its Life Without Losing Its Soul Page 39
