Why Starbucks Is Successful? (11 Reasons Why)

Starbucks is one of the most successful companies in our times. They started out as a roasting store in Seattle, grew to be a global chain with over 32,900 stores across 80 countries.

Starbucks has been known to create products which are more efficient than other establishments. Their coffee quality is known to be higher than other coffee houses. They have created an atmosphere where people can relax and enjoy a cup of coffee at a comfortable location.

Starbucks is a convenient place to go, they have all new menu items for you to try, they’re always updating their menu to keep customers satisfied, and their leadership is a former CEO Howard Schultz who made the company all about the customer (not about what the customer wants, though), about the environment, and about social responsibility.

It’s clear that the success of Starbucks is a mixture of all these things. Let’s take a look at these factors in detail.

11 Reasons Why Starbucks Is Successful In 2022

1. Customer Experience

The Starbucks brand is built around customer experience, which includes quality food and drinks, upscale yet friendly decor, and a friendly environment that offers customers to create almost any drink that they can think of.

Starbucks is the kind of place where you can meet your friends, hold an informal brainstorming session for work, or use the free wifi and comfy couches to get some work done on a paper or report.

In fact, some people would be willing to pay a lot to feel as if they have been part of this magical experience. I would say that this experience is also a form of “transportation” in the sense that it allows people to experience something that is foreign to them or something that is meaningful to them.

2. Location

Starbucks also made great use of the unique aspects of their environment. They put their stores in locations that had an easy, convenient access to public transportation. Their stores were also located at the intersections of busy streets, making it easy and convenient for customers to stop into their locations.

There are so many Starbucks stores that there are likely to be one close to each place you live or work. You only have to decide when you are going to stop for the day, so you don’t have to worry about the inconvenience.

3. Convenience

I believe that Starbucks has been all about convenience and for millions of customers it has become part of their morning routine to grab a cup of quality, well-made coffee on the way to work.

The people of Italy have shown their support for Starbucks this past week by choosing a small American company over the might of the Italian government.

4. Quality Food And Drinks

Starbucks began as a small store in Pike Place Market, Seattle, in 1971, named after the company logo, the “Starbucks” cup.

When I got to the restaurant I was amazed to see a huge refrigerator filled with healthy, tasty snacks, sandwiches and hot breakfasts.

Starbucks is trying to become a worldwide chain by having its products sold in many countries. New items like the Frappuccino and other innovations are introduced to increase the company’s popularity.

As the restaurant has evolved, the menu has changed to include a variety of breakfast and lunch items, including sandwiches, panini, salads and vegetarian entrees.

5. Innovation

Starbucks has been able to continuously innovate, from the introduction of new menu items to the development of ethical sourcing policies. The company’s culture is built on innovation, and helps it to stay on top of the leadership scene.

Innovation also means occasionally having to change your strategy, when you realize that the way you did it before might not be the same way you should have done it in the first place.

The company was forced to close the majority of its stores there due to the fact that they couldn’t attract as many young people there.

6. Strategic Expansion

Starbucks had its first store in Canada in 1987, and since then, it has continued to expand globally, with several more stores opened in the Middle East, Mexico (in 1994), the United Kingdom, and the United States (in 1993).

Starbucks has maintained its identity and quality by opening new stores. It has not lost its distinctiveness.

7. Something For Everyone

Starbucks has an image of being a family-friendly coffee shop so that they don’t have to deal with adults with kids.

The wide range of drinks and food items on the menu means that there is something for everyone. Espresso shots, teas and other beverages are served all day, while a selection of cakes, cheeses, meats and other delicacies are available for the sweet to come.

8. Promotions

Starbucks marketers are masters of their art and know how to keep customers engaged and coming back for more. The Starbucks Rewards program was one of the earliest loyalty rewards programs and became a model for other companies.
The rewards program is a cornerstone to the success of the brand. It is a program that is unique to Starbucks and has proven to be one of the most successful loyalty programs on the planet.

Through seasonal promotions, there are opportunities to win or get free gifts and discounts on selected items. Through the Rewards program, customers can accumulate points which can be exchanged for goods and services.

9. Leadership

Schultz also did a great job of taking the business to the next level. He transformed the company into a global brand and the company was a major player in the coffee market. As well as the growth of Starbucks was so fast that they had to rebrand themselves several times to keep up with the growing demand for the product.

The founder of Starbucks knew about the global potential of the company and also realized the importance of preserving the environment.

10. Environmental And Social Responsibility

This was after they had already begun to make environmentally and socially responsible decisions. This was in response to the environment and socially responsible decisions that were already being made.

The whole process of ethical sourcing is about making sure that products sourced from the region are not the source of environmental degradation. Products like tea bags and coffee beans, for example, require a lot of land to grow and are often produced in unsustainable ways.

This is another instance where Starbucks has gone against conventional wisdom and chose the ethical alternative (higher costs) versus lower costs. And the choices however weren’t well received by customers.

The company has made it policy to use only Fair Trade Certified products, and has partnered with other Fair Trade vendors to provide the best products to its customers.

11. Investing In Its Workers

Starbucks invests in its employees through good wages and benefits, including healthcare, college tuition, and paid leave. Employees receive training when they join and throughout their careers. They receive an annual bonus based on their performance.

Starbucks employs a culture of empowerment and diversity that leads to employee growth and success, and this, in turn, contributes to the company’s success.

In closing I want to give an example of a company that also had to move from legacy to new technology. This was a large, global company that was well known, well respected and highly profitable. This company was one of the largest in the world. In our first meetings with the leadership team, we found that they were in denial. Most of them thought that they were safe and secure in their leadership positions. They believed that the system they were running was the best in the world and that it would always be there for them.

You can find out more about Starbucks by checking out these posts: Why did Starbucks fail in Australia, why does Starbucks coffee taste burnt, and if Starbucks delivers.