Beyond the cup. - Starbucks

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OPENING NEW STORESFor nearly all of the 574 U.S. company-operated storesStarbucks opened in fiscal 2005, we received a warm andpositive reception from customers, neighborhood businessesand the communities. In several instances, a less thanwelcoming atmosphere ensued around the opening of a newStarbucks store. Our community affairs team approaches thesesituations as opportunities to reach out to the community andengage in dialogue. In nearly all instances, common groundwas achieved, by which the interests of the community andStarbucks customers will both be served. However, in someinstances we respectfully withdrew plans to open new storesbecause we questioned whether Starbucks was a good fit forthe locale.Traci Moriarty (left), store manager of the Durango, Colorado, Starbucks and store partner Jenny Aponowicz create each coffeebeverage according to their customers’ preferences.CASE STUDY: STARBUCKS – DURANGO, COLORADODurango has 15,000 residents and is a destination foroutdoor enthusiasts. The local community has taken stepsto preserve Durango’s charm and sustain its vitality as awonderful place to live and great place to visit.Prior to opening in April 2005, we heard that someresidents were not supportive of Starbucks locating onDurango’s Main Street. After opening, the store wasprotested and later vandalized. Local press coverage capturedthe deep divide between those who worried that Durango’slocal appeal was threatened and those who saw Starbucks asa symbol of economic vitality. As the vandalism picked up,many community residents and local businesses condemnedthe acts and expressed support for Starbucks. They arguedthat if someone doesn’t like Starbucks, they could patronizeanother local coffeehouse.The experience in Durango was not typical. However, itrevealed the intense emotions some people feel towardcorporate retailers. Starbucks is cognizant of this andworks hard to demonstrate our sincere respect for everycommunity and its local residents.Starbucks seeks to contribute positively to every communityin which we operate. Most often, our store partners arelocal residents. We encourage them to engage locally, whichthey did in Durango. In 2005, our Durango store partnersvolunteered for several local organizations and developeda special relationship with Community Connections, anorganization that trains physically and mentally challengedindividuals and places them in jobs. One of our Durangopartners was hired through Community Connections.By the end of fiscal 2005, things had settled down inDurango. Business was brisk over the summer and thestore cultivated many new regular customers. Given whathappened, our local store manager, Traci Moriarty, has beenmost surprised by the flood of résumés she receives. “It washard not to take things personally in the beginning,”Traci said. “But now I’m thrilled that so many peoplethink of Starbucks as a place they would want to work.”36SOCIETY
STARBUCKS URBAN COFFEE OPPORTUNITIES STORESWASHINGTONINDIANANEW YORKILLINOISMICHIGANWISCONSINOHIO31544746 1154MARYLANDWASHINGTON, D.C.2GEORGIACALIFORNIA2COLORADO2FLORIDATEXASIndicates number of Urban Coffee Opportunities store locationsUrban Coffee OpportunitiesIn 1998, Starbucks formed a joint venture with JohnsonDevelopment Corporation (JDC), which is owned byEarvin “Magic” Johnson. Together we created UrbanCoffee Opportunities, LLC (UCO), bringing Starbucksstores to diverse communities. We opened 14 new UCOstores in fiscal 2005 and ended the year with a total of 87.(See map above.) Over the long term, we plan to establish125 UCO stores in the U.S.When scouting for new UCO locations, Starbucksand JDC consider the economic vitality and long-termpotential of a given market. In some communities,the arrival of Starbucks has helped to serve as aneconomic stimulus with the creation of new jobs, useof local suppliers, our support for community-basedorganizations, and by attracting other retailers to the area.The collective economic impact that our UCO storesgenerated in fiscal 2005 included:• Providing more than 1,500 jobs in 87 UCO stores• Paying an estimated $24 million in salaries/wagesand benefits to UCO partners• Providing healthcare benefits to eligible andparticipating part- and full-time store partners,their spouses, domestic partners and eligibledependent children37SOCIETY
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Page 9 and 10: Integrating Corporate SocialRespons
Page 11 and 12: Stakeholder EngagementOur stakehold
Page 13: Starbucks is committed to purchasin
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Page 19 and 20: The value chain that extends from f
Page 21 and 22: C.A.F.E. PRACTICES TIMELINEEvolutio
Page 23 and 24: ECONOMIC TRANSPARENCYFor all the co
Page 25 and 26: Starbucks and Fair TradeStarbucks a
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Page 30 and 31: Procurement Practices forSustainabl
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Page 36 and 37: Progress Report on Our Performance
Page 40 and 41: Community InvestmentsWhether it’s
Page 42 and 43: Investing in Coffee- and Tea-Growin
Page 44 and 45: Students at Kewena Gata High School
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Page 48: Being Responsive to CustomersWe wil
Page 51 and 52: Recycling is as important toStarbuc
Page 53 and 54: ENVIRONMENTAL RESPONSIBILITY AND LE
Page 55 and 56: Renewable EnergyBecause the energy
Page 57 and 58: Developing Innovative andFlexible S
Page 59 and 60: Hot Beverage Paper CupsIn 2005, Sta
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Page 63 and 64: 3 4 5Support: Packaging andPaper Pu
Page 65 and 66: In the event of a natural disaster,
Page 67 and 68: PROVIDING A GREAT WORK ENVIRONMENTA
Page 69 and 70: Fostering Diversity and InclusionAt
Page 71 and 72: FOCUSING ON HEALTHCARE AND WELLNESS
Page 73 and 74: Health and SafetyStarbucks is commi
Page 75 and 76: Your Feedback MattersIn preparing S

Beyond the cup. - Starbucks

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