Economist’s Article on Starbucks’ Owner

Economist: Staying pure, Howard Schultz’s formula for Starbucks.(Feb 23rd 2006 )

It’s nice to its employees:

Starbucks buys expensive beans and pays its growers—be they in Guatemala or Ethiopia—an average of 23% above the market price. A similar benevolence applies to company employees. Where other corporations seek to unload the burden of employee benefits, Starbucks gives all American employees working at least 20 hours a week a package that includes stock options (“Bean Stock”) and comprehensive health insurance.

And it is good for other coffee houses, too.

No doubt the coffee snobs will blanch at the prospect. Yet they miss three points. The first is that, thanks to Starbucks, today’s Americans are no longer condemned to drink the insipid, over-percolated brew that their parents endured. The second, less recognised, is that because Starbucks has created a mass taste for good coffee, small, family-owned coffee houses have also prospered (and no one has ever accused Starbucks, with its $4 lattes, of undercutting the competition).

Last but not the least:

The company is now in 37 different countries. China, which has over 200 stores, will eventually be its biggest market after America, …