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Starbucks Mission statement: To inspire and nurture the human spirit - one person, one cup and one neighborhood at a time.
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McDonald's Mission statement: Our mission is to make delicious feel-good moments easy for everyone.

Starbucks' mission statement focuses on its stakeholders and, most notably, its customers. In addition, this statement implies their commitment to a great experience every time. That includes variety, consistency, ambiance, relationships and service. McDonald's statement revolves around being quick and providing a fast service. There isn't a focus on their coffee experience like there is on their menu with fast food options.

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Culture and Values: Starbucks Coffee Company

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Starbucks' custom experience surpasses McDonald's quick service, which offers less than 17 varieties of coffee drinks. Starbucks offers an endless variety of drink combinations that can be ordered in person and thru the application. Starbucks' drink combinations have become so trendy that many share their custom drink mixes on social media and websites. Individuals who prefer classic menu items can rest assured knowing that there are consistent menu items throughout all stores.

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Did You Know Starbucks Has a Gigantic Secret Menu?

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Starbucks has developed a strong consumer community through marketing strategies like its point-based rewards program. That rewards customers points for each coffee or merchandise purchased at the store. The Starbucks community has become so strong that many people sell custom cups and other merchandise of the beloved brand. Starbucks has also heavily focused on having an inclusive workforce.

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Getting started is easy

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To get started, join now. You can also Join in the app to get access to the full range of Starbucks® Rewards benefits.

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As you earn Stars, you can redeem them for Rewards—like free food, drinks, and more. Start redeeming with as little as 25 Stars!

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Customize your drink

Make your drink just right with an extra espresso shot, dairy substitute or a dash of your favorite syrup.

Brewed hot coffee, bakery item or hot tea

Pair coffee cake or an almond croissant with your fresh cup of hot brew.

Handcrafted drink, hot breakfast or parfait

Have a really good morning with a breakfast sandwich, oatmeal or your favorite drink.

Salad, sandwich or protein box

Nourish your day with a hearty Chipotle Chicken Wrap or Eggs & Cheese Protein Box.

Select merchandise or at-home coffee

Take home a signature cup, a bag of coffee or your choice of select coffee accessories.

Endless Extras

Joining Starbucks® Rewards means unlocking access to exclusive benefits. Say hello to easy ordering, tasty Rewards and—yes, free coffee.

Fun freebies

Not only can you earn free coffee, look forward to a birthday treat plus coffee and tea refills.

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Enjoy the convenience of in-store, curbside or drive-thru pickup at select stores.

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No matter how you pay, you can earn Stars with your morning coffee. Those Stars add up to (really delicious) Rewards.

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Check-out faster by saving a credit/debit card or PayPal to your account. You’ll be able to order ahead or scan and pay at the register in one step.

2Stars per dollar

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To save time and earn Stars twice as fast, add money to your digital Starbucks Card using any payment option. Scan and pay in one step or order ahead in the app.

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Then use it to pay through the app. You can even consolidate balances from multiple cards in one place.

3Stars per dollar

With Starbucks® Rewards Visa® Card

Earn Stars even faster

Earn Stars on all purchases you make with our credit card in and outside of Starbucks. Earn 1 Star per $1 when you digitally preload your Starbucks Card with your Starbucks® Rewards Visa® Card, and earn 2 Stars per $1 when you pay with that preloaded Starbucks Card.

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Stars cannot be earned on purchases of alcohol, Starbucks Cards or Starbucks Card reloads.

Earn 1 Star per $1 spent when you scan your member barcode in the app, then pay with cash, credit/debit cards or mobile wallets at participating stores. You can also earn 1 Star per $1 spent when you link a payment method and pay directly through the app.

Earn 2 Stars per $1 spent when you load funds and pay with your digital Starbucks Card in the app. You can also earn 2 Stars per $1 spent when you pay in-person at a participating store with your registered physical Starbucks Card or scan your member barcode in the app, and then use any physical Starbucks Card (regardless of whether it is registered) to complete the purchase.

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* Earn 1 Star per $1 when digitally loading your Starbucks Card with your Starbucks® Rewards Visa® Card: See your Card Rewards Program Agreement for more details.

Starbucks® Rewards benefits are available at participating Starbucks stores. Not all stores have the ability to honor Rewards at this time. Visit the Starbucks Store Locator and search for locations honoring “Redeem Rewards”.

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Benefits

Free refills available during same in-store visit only. To qualify for the Birthday Reward, you must have made at least one Star-earning transaction.

Redeeming Rewards

Rewards cannot be redeemed for alcoholic beverages or multi-serve items. Not all stores honor tiered Rewards. Select stores redeem 150 Stars for free food or drink items only.

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Most importantly, Starbucks surpasses McDonald's in the coffee game because it's a worldwide brand focused mainly on the coffee shop experience. Each Starbucks coffee shop provides a tranquil and productive environment to study, work and meet over a cup of coffee. In addition, many stores offer outdoor lounges to drink coffee out in the open. Starbucks also provides quick-stop options like drive-thru ordering and order ahead features on the app for the coffee drinker on the go. For huge Starbucks fanatics, the company offers a wide variety of international touristic Starbucks shops that are definitely photo-worthy. Each store also carries Starbucks merchandise and coffee beans for customers to take a piece of Starbucks back home.

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Starbucks offers quality assurance for all of its products. Coffee beans go through a rigorous testing process before they are sent to storefronts.

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Exceptional coffee can only come from exceptional beans.

Starbucks Arabica beans are different from regular Arabica beans. At every step, we go to great lengths to make sure our beans meet the highest standard of quality. How do we do it? Glad you asked

We go where the best beans are: up.

The best beans grow at higher altitudes. The cold nights and warm days create denser beans. And denser beans have deeper, more complex flavours. Taste them in every cup of Starbucks coffee.

We're for the good of all coffee

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Coffee Quality | Starbucks Coffee Company

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Exceptional coffee can only come from exceptional beans. Starbucks Arabica beans are different from regular Arabica beans. At every step, we go to great lengths to make sure our beans meet the highest standard of quality. How do we do it? Glad you asked The best beans grow at higher altitudes.

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Every season Starbucks releases its ingredient list for all of its drinks. You can see what comes in the drink on the list before you customize it.

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Narrator: Six out of 10 American adults drink a cup of coffee every day. And many of them come from Starbucks, Dunkin', Tim Hortons, or McDonald's: four of the most popular coffee spots in the country. But where in the world does all of this coffee come from?

Starbucks sources its coffee from more than 30 countries in the three major growing regions of the world. The company's breakfast and house blends come from Latin America. And their popular Pike Place roast comes from Colombia and Brazil. After sourcing the beans, Starbucks roasts them in the US and then distributes them among more than 14,000 stores nationwide.

And then there's Dunkin'. Like Starbucks, much of Dunkin's coffee comes from Latin America. These countries include Brazil, Colombia, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, and Peru. Once the beans arrive stateside, Dunkin' roasts them in one of seven facilities and then brews them to serve at more than 9,000 stores across the country.

And next, we have Tim Hortons. Tim Hortons' coffee comes from several countries in Asia and Latin America, including Brazil and Colombia, and, occasionally, they'll source beans from Africa. The company then roasts the beans in New York and Ontario and brews them to serve at around 700 stores in the US.

And finally, we've got McCafé. That's McDonald's coffee brand, which launched in 2009. McCafé sources a lot of its beans from Colombia and Brazil, and the rest comes mostly from other countries in Latin America. Those beans are then brought back to the US for roasting and serving at one of the chain's 14,000 locations nationwide.

If there's one thing these companies have in common, it's that they source beans from a lot of different countries. But why?

Well, it starts with flavor. Geography can actually greatly affect the taste of coffee beans. Colombian coffee, for example, tends to be sweet and nutty, whereas coffee from Indonesia often tastes more earthy.

And the second reason is risk, which there's a lot of when it comes to growing coffee. Droughts and bug infestations, for example, are common and can easily decimate a country's harvest. So companies source from different countries to prevent a sudden drop in supply.

And the third and final reason is that companies want to ensure a more steady supply. You see, beans are ready for harvest at different times in different parts of the world. So by sourcing coffee from several different countries, companies will always have a steady source of beans to buy.

And that's a good thing, because Americans without coffee are not people you want to face.
EDITOR'S NOTE: This video was originally published on July 2, 2019.

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This animated map shows where Starbucks, Dunkin', and McDonald's coffee comes from

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Narrator: Six out of 10 American adults drink a cup of coffee every day. And many of them come from Starbucks, Dunkin', Tim Hortons, or McDonald's: four of the most popular coffee spots in the country. But where in the world does all of this coffee come from?

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Consumer care about where their coffee is sourced from. Starbucks offers a full report detailing where each coffee bean bag is from.

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Starbucks mission to inspire and nurture the human spirit extends well beyond our customers, partners and cafes. We take pride in conducting business responsibly and supporting communities where we do business, from bean to cup. As a company that buys approximately three percent of the world's coffee, sourced from more than 400,000 farmers in 30 countries, Starbucks understands our future is inextricably tied to the future of farmers and their families.

The cornerstone of our ethical sourcing approach to buying coffee is Coffee and Farmer Equity (C.A.F.E.) Practices, which was one of the coffee industry's first set of ethical sourcing standards when it launched in 2004. Developed in collaboration with Conservation International, C.A.F.E. Practices is a verification program that measures farms against economic, social and environmental criteria, all designed to promote transparent, profitable and sustainable coffee growing practices while also protecting the well-being of coffee farmers and workers, their families and their communities. C.A.F.E. Practices has helped Starbucks create a long-term supply of high-quality coffee and positively impact the lives and livelihoods of coffee farmers and their communities. The open-sourced program consists of more than 200 indicators - from financial reporting to protecting workers' rights and conserving water and biodiversity. The program includes a third-party verification process that is overseen by SCS Global Services, responsible for ensuring the quality and integrity of the audits.

C.A.F.E. Practices is just one of the ways in which we are providing holistic support to farmers and their communities to ensure a sustainable future of coffee for all. Read more about our commitments including farmer loans, our open-source agronomy work, farmer support centers, tree donations and Origin Grants to support women and girls. In addition, to learn more about our goals to achieve carbon neutral green coffee and to conserve water usage in green coffee processing by 50%, both by 2030.
Learn more about C.A.F.E Practice

Measuring the Impact of C.A.F.E. Practices

See how C.A.F.E. Practices positively impact people, products and the planet. Read the latest C.A.F.E. Practices Impact Assessment Report prepared by Conservation International.
Read the latest report

Learn more about ethical sourcing of products

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Responsibly Grown and Fair Trade Coffee: Starbucks Coffee Company

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Starbucks mission to inspire and nurture the human spirit extends well beyond our customers, partners and cafes. We take pride in conducting business responsibly and supporting communities where we do business, from bean to cup.

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Apparently, Starbucks did not create the iconic Frappuccino... but I bet you can't name who did.

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Apparently, Starbucks did not create the iconic Frappuccino... but I bet you can't name who did.

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While McDonald's is a top-of-mind association for fast food. Starbucks dominates the coffee shop market, holding 40% of the market share (Statista, 2022).

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Most people can't imagine that a Frappuccino could be anything but a cool, sweet beverage topped with whipped cream, a dome lid and green straw. But the now iconic drink wasn't invented by Starbucks.

In the summer of 1992, a coffee shop called Coffee Connection in Cambridge, Massachusetts, distributed coupons for a new frozen drink called the Frappuccino. The drink quickly became popular with Harvard University students. "People were lining up out the door for it," George Howell, the former owner, told TODAY Food.

Howell was one of the pioneers of the specialty coffee movement in the United States during the 70s and 80s. He now operates George Howell Coffee, which has three coffee shop locations in Massachusetts. The main focus of his current business is to help farming communities by freezing coffee beans immediately after they are harvested.

"I was very aware of Starbucks' rise from 1987 forward," Howell told TODAY Food. "Starbucks professionalized the cafe. They put the cappuccino machine face-out, so baristas could face customer. It changed the game."

In 1989, Howell took a trip to Seattle to explore his trade. The city was then home to Starbucks, plus specialty coffee companies like Seattle's Best Coffee and Torrefazione Italia café (which Starbucks purchased in 2003). Howell stopped into Torrefazione with a guide who was showing him around Seattle's coffee shops.

"There it was. A frozen cappuccino was being made in a granita machine. The second I tasted it — it was just a fantastic, simple drink. I knew it was going to be big."

Howell's tour guide provided the recipe, which consisted of three simple ingredients: "very strong coffee, sugar and milk." Howell headed home to Coffee Connection where he and his right-hand man, Andrew Frank, perfected the mix.

"The key to the Frappuccino that we created was getting it balanced so that the texture did not have any crystallization. It [needs to be] very smooth, sort of like a soft ice cream, but different — if you have a glass and turn it to the side, [the drink] should go into your mouth. [Frank] came up with 'Frappuccino.' The second he said it, we all said, 'That’s the name!'”

Coffee Connection launched the Frappuccino in the summer of 1992 in Boston. George Howell

As Boston thawed into the summer of 1992, The Coffee Connection distributed coupons to advertise their new drink in the Harvard Square store. By 1993, the drink took off and Howell began selling Frappuccinos in his sprinkling of stores throughout Connecticut, New York, New Jersey and Massachusetts. Howell replaced the granita slushie machines with soft serve ice cream machines to accommodate the demand, but every batch had to be brewed and mixed fresh.

As the Frappuccino became a hot item at The Coffee Connection, Starbucks tested a similar drink in a single Los Angeles store. Only this one (which saxophonist Kenny G likes to take a little credit for) was made with a blender.

The Frappuccino then and now. George Howell, starbucks/Instagram

By 1994, Starbucks bought out The Coffee Connection, and with it, the "Frappuccino" name that Howell had trademarked. Starbucks applied the catchy title to its own recipe and, by 1995, sold it nationwide and in Canada.

"We created the name. I have never taken credit for creating the concept," Howell told TODAY Food. "It’s really something where you learn from everything around you and you bring it out in the right way. And that’s what we did."

Howell said Starbucks' use of a blender is what gave the company the ability to experiment with different flavors and syrups for everything from mocha to unicorn Frappuccinos. Using a powerful commercial-grade blender creates a Frappuccino in moments — and makes customers feel that they are getting special service with a custom-made drink, Howell explained.

While Howell's focus now is on re-revolutionizing the coffee industry to freeze fresh beans and benefit farmers, George Howell Coffee still sells the drink that brought The Coffee Connection success one summer 26 years ago.

"The simple yet delicious combo" is made with French roast coffee, milk and sugar, which is then frozen and slushied.

It's called "The Original."

We apologize, this video has expired.

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Starbucks didn’t invent the Frappuccino. Here’s who did.

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The surprising truth behind the iconic drink.

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"Rewarding Taste Buds" is one of many slogans for the coffee experts who offer a variety of products for every type of coffee consumption. From seasonal beverages to non-dairy options, customization is key for Starbucks.

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"Rewarding Taste Buds" is one of many slogans for the coffee experts who offer a variety of products for every type of coffee consumption. From seasonal beverages to non-dairy options, customization is key for Starbucks.

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How many listicle articles have you come across ranking McDonald's coffee beverages?

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Starbucks currently has 38 drinks on its ever-changing menu (and 50-plus food items), and infinite ways to customize them, but you've probably only had a fraction. Despite my embarrassing math SAT score, even I know a fraction of 50 isn't a lot, so to help you break the chains of habit, I've compiled this constantly updated ranking of every single drink on the Starbucks menu. Perhaps you'll read it and find something new you want to try. Or perhaps you'll think I'm wrong about everything. Let's find out together!

But first, a few ground rules:

This list of drinks is up-to-date as of December 20, 2017. While you might be able to order drinks not found here, please note that I've limited my selections to items that specifically appear on the Starbucks menu. I'll update this ranking whenever Starbucks officially adds new drinks to its roster.

I've included the hot and iced versions of drinks (such as the coffee) only when Starbucks lists both on its menu. Otherwise this ranking would be very long and very boring.

I didn't customize the drinks in any way, so that I could experience them as Starbucks intended.

All the drinks' nutritional info is based on a 16-ounce Grande size.

Make sense? Then grab a Youthberry tea, toss it in the trash immediately, order up a Pumpkin Spiced Latte instead, and check out this ranking.

Remember Surge Soda as a Kid? It's probably the drink your parents never wanted you to have

37. Teavana Shaken Strawberry Green Tea Infusion Lemonade

36. Salted Caramel Mocha

35. Eggnog Latte

34. Toffee Almondmilk Hot Cocoa

Nutritional info: 280 calories, 28 grams sugar
I took a sip out of this without seeing what the drink was labeled and thought, "Wow, this tastes like almondmilk!" And wouldn't you know... it's made with it! The toffee nut syrup and mocha sauce aren't enough to counteract the fact that this is like drinking a piping hot cup of almondmilk and not much else. But sadly, the chocolate notes here aren't strong enough to overpower the overwhelming force of the almond milk.

33. Caramel Brulée Frappuccino

27. Nariño 70 Cold Brew

Nutritional info: 5 calories, 0 grams sugar
I drink cold brew at every coffee shop I go to. It's my drink. And this isn't quite doing it for me. I'll say that it's better than Starbucks' drip coffee over ice, which should be illegal since cold brew is so easy to make, but this cold brew isn't quite there for me yet. It lacks the fruity, rich complexity that makes top-notch cold brew so delicious. And if you can find the bottled Starbucks cold brew, do so.

26. Caramel Macchiato

22. Teavana Shaken Peach Citrus White Tea Infusion Lemonade

21. Vanilla Sweet Cream Cold Brew

20. Caramel Brulée Latte

17. Peppermint Mocha Frappuccino

16. Teavana Shaken Iced Passion Tango Tea Lemonade

Nutritional info: 120 calories, 32 grams sugar
When a man and a woman love one another very much, they do the passion tango. At least, that's what I was taught. But on another note entirely, this iced drink has hibiscus, lemongrass, and apple. From the look and smell of it, I thought it would completely overpower my tastebuds and resemble a cup of liquid potpourri, but the hibiscus and lemongrass finish is pleasant!

15. Teavana Shaken Peach Citrus White Tea Infusion

14. Classic Chai Tea Latte

13. Caffè Latte

7. Hot Chocolate

6. Pumpkin Spice Latte

Nutritional info: 380 calories, 50 grams sugar
It's such an important drink in the Starbucks lineup that there are news stories dedicated to it. A couple years back, I even went to every major chain and tried all their pumpkin spice drinks, and you'd never believe what came in first! OK, you probably would. It was this drink. In the meantime, they changed the recipe (they added pumpkin puree and took out artificial flavoring), but it still tasted the same to me. Which is great. This is a classic. Never change, PSL.

5. Gingerbread Latte

4. Snickerdoodle Hot Cocoa

Nutritional info: 420 calories, 53 grams sugar
I talked about how the peppermint and salted caramel hot cocoa drinks taste like liquified candy bars. So isn't it fitting that this drink has the name of one in it? As a kid, I was always so confused why Snickerdoodles don't taste like Snickers. I'm still mad at that. But I'll table my irrational anger at the name because this is an unexpectedly great hot cocoa variety. White chocolate hot cocoa (calling it 'white hot chocolate' makes it sound as if it were super hot!), that is. This has a white chocolate base and a positively delightful layer of cinnamon sugar on top. It's as if Cinnabon created a white chocolate cinnamon bun, liquified it, and heated it up. You're gonna want a Grande.

2. Flat White

Nutritional info: 220 calories, 17 grams sugar
While this tastes like a glass of warm milk with coffee flavoring to me, it actually has plenty of espresso -- two ristretto shots and steamed whole milk. Whatever's in it, it's delicious. You also get a smooth and not-at-all bitter coffee finish, too. So much warm milk you'll want to go to bed after drinking this. Also, my colleague was shown how Starbucks makes these, which is pretty cool.

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Lee Breslouer writes about food and drink, and is strangely not as sick of coffee as you'd think. Follow him to Starbucks Rewards stars: @LeeBreslouer.

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Every Drink on the Starbucks Menu, Ranked

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Starbucks currently has 38 drinks on its ever-changing menu (and 50-plus food items), and infinite ways to customize them, but you've probably only had a fraction. Despite my embarrassing math SAT score, even I know a fraction of 50 isn't a lot, so to help you break the chains of habit, I've compiled this constantly updated ranking of every single drink on the Starbucks menu.

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Sip your favorite coffee at the comfort of home. From Keurig K-cups, VIA instant packets, cold brews and lattes, Starbucks brings their iconic roasts to consumers' homes.

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Sip your favorite coffee at the comfort of home. From Keurig K-cups, VIA instant packets, cold brews and lattes, Starbucks brings their iconic roasts to consumers' homes.

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Starbucks gives the consumer an option to avoid long lines and enjoy their coffee without feeling rushed both in-store and at home.

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STARBUCKS ®

Try the smooth and delicious taste that's stirring up coffee.​

HERE, THERE'S SOMETHING FOR EVERYONE

From familiar favorites to delicious discoveries, Starbucks offers unlimited ways to enjoy your everyday cup.

TAKE NOTE New Look. Same Great Taste.​

Wake up to a surprisingly smooth cup. Discover notes of toasted malt and milk chocolate within Starbucks ® Veranda Blend ®.

STARBUCKS® BY NESPRESSO® FOR VERTUO Starbucks® Coffee Quality, Now for Vertuo

Bring café-quality coffee and espresso home at a touch of a button.

GET INSPIRED Finding the Right Roast for You

People have very different tastes, so our master roasters work hard behind the scenes to create unique coffees for every preference.

TAKE NOTE New Look. Same Great Taste.​

Wake up to a surprisingly smooth cup. Discover notes of toasted malt and milk chocolate within Starbucks ® Veranda Blend ®.

STARBUCKS® BY NESPRESSO® FOR VERTUO Starbucks® Coffee Quality, Now for Vertuo

Bring café-quality coffee and espresso home at a touch of a button.

GET INSPIRED Finding the Right Roast for You

People have very different tastes, so our master roasters work hard behind the scenes to create unique coffees for every preference.

COFFEE QUIZ

COFFEE QUIZ

COFFEE QUIZ

COFFEE QUIZ

COFFEE QUIZ

COFFEE QUIZ

Meet Your Match

Your coffee journey begins here. From light and bright to bold and rich, discover a coffee fit for your everyday.

Take the Quiz

ABOUT STARBUCKS

Our Story Started in Seattle

Discover what makes Starbucks unique-from our commitment to human connection and quality coffee to our welcoming cafés and delicious products you can enjoy at home.

Read About Us israelText5 mins

MORE EVERYDAY FAVORITES TO LOVE

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STARBUCKS ® Try the smooth and delicious taste that's stirring up coffee.​ HERE, THERE'S SOMETHING FOR EVERYONE From familiar favorites to delicious discoveries, Starbucks offers unlimited ways to enjoy your everyday cup. TAKE NOTE New Look. Same Great Taste.​ Wake up to a surprisingly smooth cup.

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Somehow tall is actually small and Autumn is incomplete without a Pumpkin Spice Latte.

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Somehow tall is actually small and Autumn is incomplete without a Pumpkin Spice Latte.

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Starbucks' brand awareness and cultural impact on coffee consumption supersedes McDonalds.

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http://www.flickr.com/photos/ermakov/5601025967/
On September 7, 1982, began working at the first Starbucks store in Seattle's Pike Place Market. At the time, he was the company's marketing officer. A business trip to Milan and Verona convinced him that a coffee shop had to sell more than whole bean and ground coffee to really be successful. Since his bosses wouldn't do it, he launched his own company, Il Giornale. In 1987, he bought his former bosses out, and became the CEO of Coffee Company.

Today, there are 16,000 stores around the world.

Every business starts small. For those coffee shops trying to compete with Starbucks, we've compiled a list of things you can imitate.
(Note: The authors of this article both worked briefly for . They are aware of the many valid reasons to hate on this company.)

*At Brooklyn's busiest Starbucks location, which is near a subway hub

Starbucks has these and other drinks down to a science, while many coffee shops fake it.

At Starbucks a cappuccino is a shot of espresso plus half steamed milk and half foam. A latte is a shot of espresso plus steamed milk with a thin layer of foam.

When making a cappuccino, baristas steam milk for 6-8 seconds. Latte milk is steamed for only 3-5 seconds. Baristas also monitor temperature when steaming milk, serving drinks at an average of 165 degrees Fahrenheit and never above a scalding 180.

To become a certified barista, candidates must pour a perfect cappuccino, which is evaluated either with an electronic scale or using a measuring cup.

Baristas manage four batches of coffee at one time, rotating each at least every 15 minutes and never allowing one to sit longer than 30 minutes. They do this even during off hours, throwing away coffee rather than serve anything old.

They also follow a timed regime for iced coffee, iced tea and pastries to ensure that everything tastes fresh.

Baristas manage complex orders with the innovative Starbucks shorthand, or Beverage ID Code, which is written in marker on every cup.

For example, a Double Chocolate Chip Light Frappuccino is DCCFL.

(Sessions include: First Impressions & Customer Service, Starbucks Experience, Coffee: Brewing & Tasting, Espresso Bar Basics, Food & Warming, Beverage Essentials, Cold Beverage, Coffee: Growing & Processing, Point of Sale (POS), Beverage Preparation, Customer Service Essentials, Coffee: Roasting & Packaging)

The Mastrena makes it easy to pull a precise espresso shot. It's also shorter, allowing baristas to interact with customers.

Better espresso machines exist, but they are rare and won't be found at any major chains.

Source: Houston Chronicle

When Schultz tasted the Clover at a small cafe in New York he immediately declared it "the best cup of brewed coffee I have ever tasted."

Starbucks bought the company that makes Clover in 2008 and started introducing the dream machine at select stores around the country.

Of course this isn't cheap. In 2009 health care cost the company a heavy $250 million, Schultz told Seattle Times.

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More: Features Starbucks Coffee Competition

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11 Things Starbucks Does Better Than Almost Any Competitor

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On September 7, 1982, began working at the first Starbucks store in Seattle's Pike Place Market. At the time, he was the company's marketing officer. A business trip to Milan and Verona convinced him that a coffee shop had to sell more than whole bean and ground coffee to really be successful.

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Okay, so McDonald's MAY have the "most downloaded fast food app" in the United States.

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Okay, so McDonald's MAY have the "most downloaded fast food app" in the United States.

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McDonald's sits atop the leaderboard for the third month in a row as the most downloaded quick-service restaurant app in the U.S. Below is the full list of the 10 most downloaded quick-serve apps in the U.S. for the month of July. You can compare it with

Downloads, or net new installs, of the top 10 quick-service restaurant mobile apps grew 7.2 percent month-over-month. McDonald's increased downloads by 664,000 from last month. on the back of its new loyalty program, which more than in. Growth is continuing into August as the app is estimated to have hit a record three million daily active users in the U.S.

National French Fry Day was last month. According to , the holiday takes place every year on July 13. Almost every restaurant that sells fries created some kind of promotion, with many specifically directing people towards their mobile app. McDonald's and Wendy's both offered free fries with purchase when ordering via mobile app. The Golden Arches also held a "World Famous Fan" contest where 66 fans had the chance to win one million MyMcDonald's Rewards points, with one person winning free fries for life. If you didn't know, free fries for life is apparently worth just under $20,000. Jack in the Box gave away free curly fries with app orders while White Castle gave away a free small fry with any purchase. You get the idea.
is the VP of Insights at Apptopia, the leader in real-time competitive intelligence. Brands use the platform to generate insights across mobile apps and connected devices. They rely on Apptopia to better understand consumer behavior and intent across app-based devices to gain a competitive advantage.

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McDonald's Has the Most Downloaded Fast-Food App in America

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McDonald's sits atop the leaderboard for the third month in a row as the most downloaded quick-service restaurant app in the U.S. Below is the full list of the 10 most downloaded quick-serve apps in the U.S. for the month of July. You can compare it with June's most downloaded apps.

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However, Starbucks is no slouch when it comes to their rewards app. Starbucks is the second most used mobile payment app in the U.S., amassing over 30 million users. 

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However, Starbucks is no slouch when it comes to their rewards app. Starbucks is the second most used mobile payment app in the U.S., amassing over 30 million users. 

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The Starbucks app is the second most used mobile payment app for point-of-sale transactions in the US, right after Apple Pay. The coffee shop contender beat out Google Pay and Samsung Pay, and is used by over 30 million Americans.

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How the Starbucks app is energizing mobile payment use

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The Starbucks app is the second most used mobile payment app for point-of-sale transactions in the US, right after Apple Pay. The coffee shop contender beat out Google Pay and Samsung Pay, and is used by over 30 million Americans.

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Starbucks has a world renowned customer loyalty program, with a highly engaged user base. 

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Starbucks has a world renowned customer loyalty program, with a highly engaged user base. 

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In the world of customer loyalty programs, Starbucks has consistently been credited with having one of the best rewards programs and a very loyal following. As of October 2021, the program has nearly 25 million members and Starbucks Rewards now represents 53% of the spend in their stores.

The coffee giant is at the top of its game because of its attention to customer experience and finding ways to achieve business goals without sacrificing customers' needs. With many restaurants and retailers longing to model their programs after Starbucks, how does the Starbucks Rewards program continuously build and strengthen customer loyalty?

Starbucks Loyalty Program’s Secret to Success: Personalization

The Starbucks Rewards program awards customers with "stars." As they earn stars, customers receive free coffee and products. In addition to celebrating their birthday with a free treat, there are also bonus rewards like double star days and access to exclusive games and offers.

But it's more than a free coffee that hooks consumers enough to become loyal Starbucks consumers. What puts Starbucks on a loyalty pedestal is their ability to envision and deliver true 1:1 customer personalization at scale.

Personalization At Scale

Consumers today have endless options, receiving interactions from brands 24/7. This means brands need to stand out as customers are demanding a certain level of personalization if you're going to earn their attention, a piece of their wallet, and their loyalty.

Starbucks has done this by hyper-focusing on identifying a holistic view of their customers. This has allowed them to truly personalize their interactions, creating a connection that leads buyers to become loyal customers.

Here's how Starbucks Rewards program achieved true 1:1 personalization:

Behavioral Segmentation

Current technologies like micro-segmentation or demographic segmentation are still connecting consumers to a handful of mass offers. Grouping consumers based on large segment patterns like their age, if they just got married, or hobbies does not create loyal customers or provide personalization. True personalization happens at the behavioral segmentation level.

When customers receive communication that matches their shopping habits, preferences, and behaviors for brands, they're more likely to engage because there’s relevance. They feel as though the brand "gets them."

Behavioral segmentation also allows brands to track and move customers more quickly and easily through a customer journey. And then marketers can identify points where efforts are or are not working, in order to optimize the experience.

Starbucks has capitalized on using behavioral segmentation by understanding the behavioral habits and patterns on a customer level. They know if a buyer uses mobile ordering, their standard order, the amount of their average order, how frequently they're visiting, and where they’re visiting.

Behavioral segmentation allows Starbucks Rewards to tailor personalized interactions and communications based on that specific customers' behavior. By building a clear 360 customer view, they created a more engaging experience for every individual customer.

Gamification

Modern gamification leverages customer data insights and creates experiences with multiple steps connected to driving value for the customer and positive business outcomes for the brand. Starbucks has taken the concept of gamification and based its entire loyalty program around it, using powerful tools to better engage customers and induce emotions like excitement, intrigue, and happiness to influence specific actions.

Consumers move up through personalized steps on the customer loyalty journey, earning stars while working towards "winning" a reward. These steps could include downloading the mobile app, purchasing a muffin with your regular latte, or placing your order ahead of time with mobile pick up features. Below you’ll see how Starbucks uses gamification to personalize on a customer level. It's important to note that when customers can see the path laid out before them, they're more likely to purchase.

Gamification allows brands to deepen the relationship with customers and build an emotional connection that benefits you and them. They're working towards relevant offers while creating an emotional connection to your brand, and you're gathering more data through interactions that help drive incremental revenue. In fact, brands that leverage gamification see their growth rates increase by 6% to 10%.

Personalized Offers

Personalized offers are the driving force to increasing revenue in loyalty programs. And gamification and behavioral segmentation would not be possible without offers and rewards as they are your tools of communication with customers.

When presented with an offer, a consumer can be triggered by a spark of emotion that motivates them. Since emotions drive behavior, brands that create these emotional sparks with customers are better positioned to encourage customers to complete an action valuable to a brand while still being relevant and alluring to the consumer.

Offers are what gives Starbucks the advantage. Starbucks knows your purchasing habits based on behavioral segmentation; they then create personalized offers and present them to consumers in an engaging way through gamification to receive a personalized reward.

Magic? I don't think so…

Machine Learning Builds Customer Loyalty for Starbucks Rewards Program

Starbucks has accomplished personalization at scale by implementing machine learning into their loyalty program. Machine learning harnessed the power of automation and optimization, and it allowed Starbucks to personalize offers to customers' unique needs and preferences.

Machine learning automatically identifies relationships between disparate data, breaking down the data silos that have previously prevented personalization. As more data is gathered with every customer interaction, the machine learning algorithms become more intelligent, enabling brands to test and analyze alternatives quickly. It then optimizes from those learnings, and fine-tunes offers to deliver each individual the most impactful customer journey.

This process is known as dynamic offer optimization. And it’s how Starbucks achieved its goal of becoming the most personalized brand in the world through its Starbucks Rewards program.

Starbucks Rewards individualized and optimized offers for each My Starbucks® Rewards customer in numerous ways using dynamic actions and dynamic rewards; by specific categories, sub-categories or products; and by the amount and type of rewards. Starbucks was then able to automate offer assembly, offer deployment, reward fulfillment and KPI measurement and tracking using dynamic offer optimization from platforms like Formation. This made deploying offers faster and increased efficiency across the entire offer cycle.

Personalized Loyalty Programs: The Number Don’t Lie

Personalization at scale might seem like a nice-to-have, or perhaps you may think it's something that is not even possible for your brand. However, if you're not currently setting yourself up for a personalized future, you're already behind and currently missing out on tremendous benefits.

There is a massive opportunity for brands that strategically leverage their data –according to BCG, redirecting 25% of mass promotion spending to personalized or dynamic offers would increase return on investment (ROI) by 200%.

It's time to start thinking about your loyalty program as a revenue driver. Knowing it costs 5 times as much to acquire new customers and that a 5% increase in customer retention can lead to a 25% increase in profit, savvy marketers are focusing on Customer Lifetime Value (CLV) to assess whether programs are driving increased revenue. They’re increasing that CLV by utilizing personalization and machine learning. And with a potential top-line growth opportunity of more than $70 billion annually up for grabs, it's a no brainer.

However, personalization at scale isn’t enough. Marketing teams can analyze campaign results to try to provide this type of personalization. But it's impossible for marketers to understand and use all of those data points for millions of loyal customers. They simply cannot work fast enough to respond to customer behaviors which are constantly changing. By implementing dynamic offers and leveraging zero- and first- party data using machine learning, brands can create and deliver effective offers much faster- now in a matter of days rather than weeks.

Starbucks prioritizes creating an individualized experience for customers, from their app to their baristas. And 79% of consumers agree that the more personalization tactics a brand use, the more loyal they are to that brand, while 73% said they're more likely to engage with a brand that offers a loyalty program versus one that doesn't.

Starbucks took their program to the next level but leveraged machine learning with increased marketing operations execution speed by 10X, increased revenue lift per offer by 3X, and sent out 15 million 1:1 offers per week.

Technological innovations have made personalization at scale possible, and Starbucks has taken advantage of that. Their secret weapon, personalization and machine learning to deliver dynamic offers that excite and engage their millions of customers.

Download the Starbucks rewards app today and join the millions of Starbucks rewards members.

How Formation helps Starbucks Customer Loyalty

After integrating Formation’s Offer Optimization Platform with the company’s data sources and marketing channels, the Starbucks loyalty program was able to:

Create individualized offers at enterprise scale: Starbucks created millions of offers each week across multiple offer types. Each type of offer was constructed with dynamic actions and rewards to improve certain customer behaviors including frequency, category exploration, cross-sell and upsell.

Continuous learning and optimization over time: Machine learning was applied to Starbucks’s customers’ data and their customers’ interaction patterns (or lack thereof) to optimize offer individualization and offer selection.

Synchronize cross-channel experiences: Starbucks’ loyalty program deployed individualized offers across channels including email, mobile app and push notifications.

Improve customer experience: My Starbucks® Rewards program customers could see their progress in real-time, with their unique offers and status reflected in the mobile app.

Dramatically increase execution speed and reduce manual work: Starbucks automated many facets of the offer process using the Formation platform, including development and measurement. This led to dramatically faster operations and improved operational efficiency.

Conduct advanced experiments: The rewards program safely, incrementally and reliably tested initiatives in the market using Formation's rapid experimentation capability.

Measure impact: Starbucks tracked and measured results with Formation’s platform to provide detailed attribution reporting against key performance indicators (KPIs).

Learn more about Formation here -> https://formation.ai/product/

Conclusion

Starbucks set a new bar for what a powerful customer loyalty program should do for both customers and the brand, and they've reaped the benefits. Are you ready to start your brand’s journey toward a dynamic, personalized loyalty program?

Determine your brand's tech readiness for personalization and learn more about your loyalty program. Start here.

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How Starbucks Became the Leader in Customer Loyalty

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In this case study, learn how Starbucks became the most personalized brand in the world through its Starbucks Rewards loyalty program.

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In Q2 of 2021, Starbucks reported that mobile app orders accounted for 26% of total transactions in the U.S. This number increased by 18% compared to the previous year. 

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In Q2 of 2021, Starbucks reported that mobile app orders accounted for 26% of total transactions in the U.S. This number increased by 18% compared to the previous year. 

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Starbucks' mobile app is also tied to its loyalty program. With one quick scan using the app you can make a payment and accumulate rewards towards discounts on Starbucks' purchases. The lure of quickly and easily accumulating rewards creates an incentive to use the app on a regular basis. The results speak for themselves. Active Starbucks Rewards members in the United States increased by 18% year over year to reach 23 million members in the second quarter of 2021 accounting for 52% of sales in stores in the United States.

One of the tactics Starbucks has used to increase app usage and uptake is to open pickup only stores. In 2019 Starbucks opened up its first pickup only location in the United States. These locations are small and often do not have seating and are meant to cater to customers ordering using the Starbucks app who want to grab and go. Starbucks is in the process of building out its network of pickup only locations. "Our vision is that each large city in the US will ultimately have a mix of traditional Starbucks cafés and Starbucks Pickup locations," said Starbucks in a statement."

A key lever Starbucks used to solidify its strength in mobile was to hire a CEO with a technology background. Johnson, the former CEO of Juniper Networks and a former executive of Microsoft, replaced Howard Schultz as CEO in 2017. Johnson has said that that: "digital relationships drive significant long-term value to Starbucks through more frequent occasions, increased spend, improved customer retention, and marketing efficiency." The company has also stated that: "digitally engaged customers purchase 2 to 3 times as many products as those that are not digitally engaged."

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How Starbucks is Using Mobile Apps to Significantly Increase Sales

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Starbucks' mobile app is also tied to its loyalty program. With one quick scan using the app you can make a payment and accumulate rewards towards discounts on Starbucks' purchases. The lure of quickly and easily accumulating rewards creates an incentive to use the app on a regular basis.

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Aside from users reporting that the Starbucks app is streamlined and easy to use, Starbucks has received a 4.8 star rating on the App Store from a total of 4 million reviews. McDonald's has received a 4.7 star rating with just over 700 thousand reviews. 

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Aside from users reporting that the Starbucks app is streamlined and easy to use, Starbucks has received a 4.8 star rating on the App Store from a total of 4 million reviews. McDonald's has received a 4.7 star rating with just over 700 thousand reviews. 