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Starbucks

Food and beverage · Founded 1971 · Seattle, Washington · Public

A coffee-bean retailer reshaped into a cafe chain after a trip to Milan.

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The story

Starbucks opened in 1971 in Seattle, selling roasted coffee beans and equipment rather than brewed drinks. Howard Schultz joined in 1982 and, after a trip to Italy, pushed the company toward an espresso-bar format.

Schultz left to start his own cafes, then acquired Starbucks in 1987 and expanded the cafe model nationally and internationally.

Key compounding decisions
  1. 1971
    Sell beans, not drinks
    The original store focused on high-quality beans and brewing gear.
  2. 1987
    Become a cafe company
    Under Schultz, Starbucks shifted to the espresso-bar model that drove its growth.
Frequently asked
When was Starbucks founded? +
Starbucks was founded in 1971 in Seattle.
What changed Starbucks into a cafe chain? +
Howard Schultz, inspired by Italian coffee bars, moved the company toward serving espresso drinks and acquired it in 1987.

Compounded is a documentary series produced by Agate Street Studios. Company profiles summarize public record for editorial context and may be updated. This is not investment advice.

Notes from Andrew

The thinking that didn’t make the final cut.

Key takeaways and the research behind each company, sent the morning each episode drops.

Netflix
S01 · E01 · COMPOUNDED
8:24
24:18