Why did Starbucks REALLY become so popular?

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☕ Welcome to the story of Starbucks! - This Starbucks documentary looks at the past, present and future of the coffee behemoth, Starbucks - from its humble beginnings selling coffee beans in Seattle, to its global domination of most of the world. This MagnatesMedia mini-movie looks at the business success of Starbucks & Howard Schultz, and how Starbucks took over the world.
For every single one of us, there are a handful of defining moments in your life. For Howard Schultz, the mastermind behind Starbucks’ empire, one of those moments came at just 7 years old. His father had just been fired from his delivery job after falling on ice and breaking his hip and ankle. The family had no medical insurance, no savings, and in that moment, no hope.
Flash forward to today, and Howard Schultz is a multi billionaire, and is responsible not just for transforming the coffee industry, but several other industries most people might not realise. But, to understand how a simple coffee store can become a global empire, we need to look at the 4 stages of Starbucks.
It begins with Howard Schultz being intrigued by the amount of orders a little coffee company was making (Starbucks), so Howard went to one of their Seattle stores to check Starbucks out for himself. He tried their coffee, and was immediately hooked. So much so, that he decided he wanted to be a part of Starbucks, and reached out to 3 guys who’d founded the company, to see if they’d hire him. But, the only person who thought Howard Schultz joining Starbucks was a good idea, was Howard himself. Despite this, Howard was persistent. He was unfulfilled in his current job, and could see huge potential for Starbucks. So, he kept writing to the Starbucks founders, and after over a year of convincing, Howard joined the Starbucks team. Little did anyone know, that decision, would change everything... #BusinessStories #MagnatesMediaMovies #Business #Starbucks #Entrepreneurship
(Thanks to Polymatter's 'Why Starbucks is actually a bank' documentary for inspiring the last part of this Starbucks story).
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⌛ Chapters:
00:00 Starbucks Documentary Prologue
00:52 How Starbucks Started
03:42 The Story of Howard Schultz & Starbucks
11:13 Starbucks' World Domination
15:52 The Future of Starbucks
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[@MagnatesMedia]

Hey legends, this is the other video that got deleted during the recent ‘situation’. (If you don’t know what I’m talking about, this video explains what happened: kzbin.info/www/bejne/l3uvlX-Ybsmqd7s ) However, I originally posted this video well over a year ago, so it’s quite likely many of you didn’t see it the first time anyway. Either way, I hope you enjoy - and I’ll be back with brand new videos in a few weeks! 😁 Thanks again for all the support. Also thank you to Shopify for sponsoring this video - Get started with Shopify for FREE at: shopify.co.uk/magnatesmedia

[@United_Wings]

Legendary ❤

[@adamgames6364]

AYYY NEW VIDDDDDD

[@Swaxol]

a

[@dukkcc2]

horray

[@ucan1]

Am very proud to have been the first to comment on this video 🤭

[@RonDLite]

Fun fact: Starbucks sells more milk than coffee

[@Ezramicon]

Warm milk? Who even drinks that?

[@mrmangbro6842]

@@Ezramicon mixed into the coffee.

[@HarleyLOLL]

nerd.

[@Bensux]

I would have guessed it was sugar. 🤢🤢🤢

[@LikaLaruku]

Their coffee is so strong that 3 drops in a cup of steamed milk constitutes as a macchiato.

[@nicholasvaldez8322]

Starbucks stepped back from having a comfortable laid back experience. The one in my town used to have comfortable leather chairs arranged in a corner. It was cozy. They’ve since removed those and placed cheap contemporary tables.

[@NazriB]

Lies again? Spank Bang USD SGD

[@user-bf3pc2qd9s]

And their popularity at least in the UK is unfathomable: expensive lukewarm 'coffee' in cardboard cups in dirty shops is not The Italian Experience. It must be my people's love of brands that make them successful.

[@jpnl0066]

congrats on 1M magnatesmedia, well deserved especially after all you've gone through :)

[@internet_userr]

😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 Never gonna-

[@walterwhiteunofficial]

Oh yeah I forgot about the copyright stuff

[@fastchicken]

Brr skibiidi dop dop dopo no no skibidi no oni

[@fastchicken]

Brr skibidii dop dop dop noi no skibiidi dop dop no noo

[@LaPelotaenlaCabeza]

@@fastchicken Skooby Dooby Doo hop hop

[@ShockzInAMinute]

Glad to see you at one million subscribers, bro... You deserve it

[@HarleyLOLL]

ik haha

[@josht5553]

No he doesn’t man. He’s a terrible person who intentionally copyright strikes people over nothing. Terrible person

[@Diva326]

You deserve more than 1million or 10million or 100million subscribers for giving us the professional documentary abt various company and orther for free ❤❤❤ really I respect you 😊

[@toregister8615]

I have a funny story about Starbucks. My friend's dad was visiting from Sicily. My friend asked me to take him out while he was at work one day, to shoot some pool, as his dad loves the game. Anyhow, long story short, he asked me to take him for a coffee afterwards. Guess where we went? That's right, Starbucks, and I hate to say it, but he said it was the worst espresso he had ever had. My biggest beef with Starbucks, personally, is their outrageous prices. Great story, btw! Thumbs up!

[@kassiaactuallydraws9361]

@@jt5341 It is?

[@andyshuai8024]

I drink Starbucks a lot. For chain coffee, the main appeal is that it’s consistent between stores which other chains fail at doing. However, compared to fresh coffee it is definitely much worse.

[@MinisterRedPill]

​@@andyshuai8024consistent? I assume you mean consistency, and in my experience it's been anything BUT consistent

[@whocares4444]

@@MinisterRedPillno consistent was correct. I assume you read it's as "its" and not "it is".

[@us3rG]

The story is great but where is the funny

[@BobHutton]

I'm happy to report that in my home city of Melbourne, Starbucks failed badly. They did badly in Australia anyway, but did especially bad in Melbourne (which has a large Italian population). These days, you're only likely to find a Starbucks in areas that cater primarily to tourists.

[@herpderpy9445]

This was a really good video. It's too bad to Starbucks went from providing good wages and benefits to employees even if they were part-time to union busting now. Also let's be honest that most of their " coffee drinks" are really just dessert in a cup.

[@dogmeat7486]

That's being kind.

[@CityStarrzz]

The bit that irks me about companies that do this, is that it’s done to provide huge payouts to shareholders and execs. They could simply pay the execs less and the general staff more.

[@summero-my5in]

@@CityStarrzzthey look down on us regular employees.

[@V3ntilator]

@@summero-my5inMany people look down on transport employees too. Without them people couldn't order things and get them shipped home. Grocery stores would be empty without transport as they never got anything to sell. Shopping malls and stores would need to close if there weren't any transport business. Point is that transport is one of the most important jobs in the world. It's so wrong to look at transport employees as losers. Without transport, Starbucks would never have any coffee to sell either.

[@IanHobday]

I can tell you why I still go to Starbucks and it's because here in Japan they came into the market as a non-smoking chain when everywhere else was either entirely smoking or had a "non-smoking section" that had zero separation from the smoking area. Starbucks broke that model and as it became more popular, other chains had to follow suit. They were the one that created that trend here and I'll always be grateful to them for it.

[@lilytea3]

0:07: ☕ Howard Schultz's journey from a difficult childhood to building a global coffee empire. 4:56: ☕ Howard Schultz is captivated by the Italian coffee bar experience and wants to transform it into the American society. 8:36: 👥 Howard Schultz meets with Bill Gates Senior and receives support to raise funds for Starbucks. 12:56: 📉 Starbucks faced financial trouble and customer dissatisfaction due to rapid expansion and the financial crisis. 17:09: 📍 Starbucks' success is largely attributed to their strategic location choices and ability to gentrify areas. Recap by Tammy AI

[@ulysse21]

Next step: Starbucks faces world huge boycott thanks to its stupid behaviour of supporting an apartheid state and criminal army.

[@narutoshipper3872]

Starbucks is proof you don’t need a good product to be successful.

[@bran9492]

Cant wait for the future video where u show the fall of starbucks. They coffee gets more and more expensive, workers are always in a bad mood (i would be too if i was underpaid and overworked), and there is almost no experience left unless u enjoy waiting in the drive thru for 30 minutes. Covid may have had a major impact on this im not sure, love their coffee but cant afford it and would never chat with strangers in starbucks.

[@Fred-ur2sr]

MM is just unstoppable i just addicted to his voice and narration

[@ducksdog9996]

Magnates is criminally underrated

[@triadwarfare]

Would you cover Australia's war on Starbucks? Au has been the most unsuccessful expansion of Starbucks, at least that's what I heard from the aussies. They prefer their mom and pop cafes more than Starbucks.

[@calmc9655]

Yeah there's already a strong cafe & coffee culture here, ironically strongly influenced by post WWII Italian immigration.

[@KerriEverlasting]

Starbucks is like dirty dishwater. - every aussie ever. 😂

[@JetS_Gamer]

As an Aussie, who lives in Melbourne, the only Starbucks location I know is at our ‘Melbourne Central’ which is also a train station, of which I think is meant for tourists coming to Australia mainly, (specifically targeted at tourists)

[@JetS_Gamer]

⁠​⁠@@KerriEverlastingAs an Aussie, I can confirm

[@tek87]

I thought Starbucks got pushed out of Australia.

[@suryakamalnd9888]

Amazing video bro!!! I'm so happy that things have become normal!!

[@tayteweatherly5422]

Amazing mini documentary!! So well done! Thank you for making these

[@LikaLaruku]

Every tiny independently owned coffee shack in American & Canada I've pulled up to in the past 20 years has had better coffee than Starbucks. & I'm reminded this every time I cave in & get a Starbucks at a grocery store in any town or state. They're losing business in the suburbs to a newer chain called Dutch Brothers.

[@LoL4897]

I just discovered your channel,love it,effort and knowledge you put are amazing

[@tinyky2598]

Really hope this channel gains momentum aGain!!!! Love your videos! Youve inspired me

[@ateevee2521]

There's waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay more to this story... but no one dares

[@muhammadisojamoldinov4188]

Your videos are amazing, by the way i've seen lotta videos breakingdown your videos style, in fact it they Worth it

[@SavNout01]

Glad to see your back making videos again.

[@christinejalandoni5919]

I can tell you in the Philippines the reason Starbucks got big here is because of the Organizer giveaway during Christmas. Also the best selling drinks are frappes so more milk and sugar than coffee.

[@MrRoda8143]

lol the folks just want to be seen inside a SB, or coming in there to enjoy the AC and out from the heart and sun

[@christinejalandoni5919]

@@MrRoda8143 both are valid I guess

[@DexMaar]

I worked for Dutch Bros for quite some time. And I got to see them go public, and I feel like this video is a warning to them. They're forgetting their roots and that Dutch Bro is an experience not just a cup of coffee. It was never meant for skeleton crews and not having the opportunity to hang out with the customer. The number of customers we used to have come by just to hang out, and by the time I left we barely knew anyone because we barely had time to say hello here's your order

[@junequintana3984]

I love Dutch Brothers. I go there everyday and I love all of the baristas. Sometimes I take them snacks.

[@junequintana3984]

I have to agree with you.

[@DexMaar]

@@ghost_mall I get what you're saying, it just felt more like cutting back those things to maximize new locations. But it is their business and their prerogative to so, just sucked that went from an awesome place to work to feeling like a fast food joint.

[@DexMaar]

@@junequintana3984 you're the best type of customer. We loved people like you. Those morning shifts are rough without food/snacks!

[@junequintana3984]

Awe thank you. That's so sweet.

[@KarimObegi-xz3sw]

Thank you so much for your informative content I really appreciate it

[@Kupela_Njovu]

Thank you yet again John, love your content as always, very informative, God Bless you

[@doge9450]

I love your videos they are so great but have effort in them to congrats on 1million subs!

[@movieman2782]

I've just seen the magnetesMedia logo in my notification i felt a real joy. Like when i'm watching a chris nolan movie 🤓

[@dotsonms]

It's embarrassing that we sheep to Starbucks. It's not that good and you can make much better very quickly at home. It was never about the coffee but the manipulation of low self esteem.

[@woodworkingandepoxy643]

Not all of us. Only time I've ever been in one was when I lost my cellphone and met the kind person that found it at Starbucks to get it back

[@teschchr122]

Actually I love my baristas and it really is that 3rd place that’s not home or work. I’ve known some of my baristas for 7 or 8 years. We even watched the eclipse together.

[@MarzellCrypto]

I'be been loving your documentaries. Been binging!!!

[@Sentient_Goose]

Forgot to mention the exploitative attitude towards employees and repercussions towards unions. This story makes shultz sound like a hero.

[@suzyclear7668]

And even worse bill gates senior. I think I’ll unfollow now

[@Financial-Education101]

Great video as always. Thx for your work

[@mikey6611_Yt]

I love your vidios you put so much work in❤❤❤

[@ryaslow1477]

YES A 20 minute long video, hopefully we could get a 40 or maybe a 1 hour long, really loving the videos

[@JokeswithMitochondria]

absolutely

[@tomhappening]

@@JokeswithMitochondria i was curious about ur username so cIicked on ur profiIe. Wasn't disappointed lmao

[@jbusyiii]

YOOOO million ssubs!!! Happy for you!

[@theowlshowofficial9563]

I still don't understand why Gates would help Howard Schultz in that way. Unless they're both in the same secret society or something. There must be an untold story there that's very relevant

[@heyamjoe]

This channel, GOLD.

[@theartofbiz]

An important point not covered in this video but noteworthy is how Starbucks's rapid growth in China in the past has helped them with their "world domination". They've opened their 6000+ stores in China already, which represent over 16% of all of their stores globally. However, their growth in China has slowed significantly due to a cocktail of factors including facing stiff competition from players such as Luckin Coffee. There's a video I made explaining Starbucks' downfall and Luckin's rise in China due to differences in business strategy, China's zero covid policy and contrasting approaches to product innovation and marketing, might be helpful to your viewers.

[@AcumenSandwich]

Well said

[@Amitseruta]

How do you make the best editing and most interesting videos 😭😭

[@ZhaoyiWang-tg7so]

love the style of the pictures accompanying this video😘

[@dukkcc2]

wait CONGRATS ON 1MIL!! lets go

[@clintonkeyes186]

I'm not sure why you reloaded this 3 hours ago. But i've already seen it, it's really good

[@ashina2146]

I find it funny that the CEO in the past going on a trip to the Italy would bring game changing reforms. And today's CEO going to Italy and made Olive Coffee because Healthy Italians drinks Olive Oil, so Excessive Olive Oil equals Healthy.

[@RGraphics]

One of my favourite channel in youtube ❤

[@xDontStarve]

amazing job!!!

[@minetomek]

The editing gets better with every video.

[@demorbe-official]

Congratulations for 1M subs. You deserve better.

[@Dominator002]

Love your video's 💯💯

[@ObiWineKenobi]

I was a Barista at Starbucks while in college. It was in downtown vancouver on robson street in the early 2000’s. At the time it was the busiest, highest revenue generating starbucks in North America. We made some great tips!

[@shervinseilsepour5433]

High Tips? Starbucks? Lol

[@commoneuropeanstarling]

Really interesting stuff. Thanks

[@zxl7204]

props on 1m!!! ily

[@savannahhamilton7358]

It would be awesome if you could put the year (visually) -- maybe month if it's a short period -- in the video instead of saying "one year later". Love your videos btw :)

[@doryakoury6090]

Worst coffee you can ever have. 😮

[@admiralensin.]

3:39 i always think don't forget is about to start playing

[@hectordrip9128]

gotta be the most underrated channel on youtube

[@shyguysgaming7405]

Nice new video love your content

[@Parasopher]

The greatest channel, MagnatesMedia!

[@osotries]

I loved this. Realized how important location is. Interesting

[@jaqueitch]

You still can't sit down with an actual ceramic coffee mug like the old days

[@infrequent2718]

Could you please make a video on how corrupt the news is? My grandad was high up in news corp and I’ve heard some things but I don’t know everything and you seem like a great video journalist

[@cattmartyr8156]

oh magnates is back back!

[@CuriousMindMedia]

Great video! 👏

[@Selasi93]

Congratulations for ❤1m subs.

[@mikezeme6485]

have to say Live in UK but I don’t like nothing about Starbucks. The Coffee is bad to be fair and I love my coffee.

[@SG-bs6dm]

Excellent video!

[@mosessupposes2571]

Starbucks and Newports have become status symbols. “ I can afford expensive coffee and smokes.”

[@shramantayade3136]

loved it man persiverance is everything

[@hypixal1512]

Your at a million, congrats

[@thabisovuyohlalukana5037]

@MagnatesMedia please do one on the Seatlle Coffee Company, I'd like to know their story better. Thanks for the great content.

[@MasterBlaster3545]

I have never set foot in one of the coffee chains ever.

[@SecretlyNatty]

This man is so clever, he not only can tell great story's about the past but also can predict the future

[@aj1218]

Do Kuerig next. It has a similar endpoint. It wasn't about the coffee but the technology

[@RandomCommenter-qu2oc]

The environmental stuff would be funny to watch

[@ibrahimmuhammadmurtala2616]

Please, reduce the size of your videos at least for 360 to 480 p as they get too heavy for people like me to watch. I love your videos by they way and keep it up. Thank you

[@d2r3krs33]

Is it weird I only ever stepped into Starbucks once or twice in my entire life?

[@truthreigns3267]

I think I only had a coffee there one time. I refuse to support this business. I prefer making my own coffee at home with distilled water not old coffee made from tap water!

[@Ashmita666]

No you're absolutely normal😂. I also went there twice. First time I went with my friends & last time with my parents. I hated it so much. The flavour was so strong. I don't like strong flavour coffees. That was my last time. Not gonna spend my money on that shit. I'd prefer making my own coffee at my home. Idk how literally 80% influencers spends their money on that shit !🏃🏻‍♀️

[@WhoAmEye_WhoAreEwe]

When did you die? Surely you haven't lived your entire life........yet? :)

[@nicholasjohnson6536]

You doing better than me I haven't stepped into a Starbucks ever!!!

[@IanMoney-pm9ie]

I’ve never been to one in my life. There’s a bookshop I sometimes visit and they have one.

[@rasikhali-fs9ox]

In what date you will upload the free course please tell me

[@ElyWaves.]

Imo another huge key to their success (just like their rewards app program) is their ability to retain customers. They’ve done a spectacular job at this. And sure you can say it’s the experience, but in reality I think it’s the convenience, the quality, and how they incentivize you to come back. Daily coffee drinkers if they buy a Starbucks mug can go in and get cheaper refills. Perfect for work everyday, then you’re also marketing them everywhere. You get good rewards, you keep coming back. Then you go to the store and can buy the same coffee to brew at home. They’ve done insanely well with customer retention

[@Yep6803]

Fun fact: NO STARBUCKS IN ITALIA AND ONLY SEVEN(caffè that is the Espresso, Capuccino that is fifty and fifty milk and coffee, Caffelatte that is coffee with milk, Latte macchiato that is milk with coffee, Caffè ristretto that is a short and strong coffee, Corretto that got grappa, Americano... with water) ! We got many good alternatives: my favorite is Dersut, Carraro (my city), Lavazza... plus standard bar (we call them "bar").

[@BuffaloianALLDAY]

😂 that poke ball toy brought me back to my 90s baby day! 😢haha

[@imaginatedenemy]

This is why I always tell someone who says sbux are overpriced that people DONT go to starbucks for expesive coffee. they go there for a new environment to work in for refresher with free wifi and socket plug.

[@CoTrucking]

Can you do story’s about car detailing?

[@Legitti]

I've been on Starbucks only once. And won't go back, over rated junk with double the prices at least here in Europe.

[@cassieoz1702]

Hot, sweet milkshakes. Bombed seriously in Australia where we like coffee that tastes of coffee

[@MaskedCapri]

Bro I’ve been watching your videos for a long time and to me you’re the best at it. However, the editing on this one is not magnates media esk there’s something off, did you hire/change the editor?

[@Ashish01326]

i can edit like magnates media

[@lucadelafortrie6264]

Can you make a video about NTT(Nippon telepgraphe and telephone ) their rise and fall?

[@hatdownlowofficial]

Find it crazy how these people can order a sudden find 2 1/2 million dollars out of nothing to buy a business 😂😂

[@MABinBarcelo]

in the Philippines starbucks is a meeting place not just for social but also business.

[@MrRoda8143]

its the status that comes with it that people chase. If you're a serious coffee drinker, there's far better options and cheaper too.

[@theSAVIOR-804]

Inspirational

[@MESSY-AF]

nice work

[@CreateThumbnails]

real ogs know this is the reupload and i alr watched but defo rewatching it!

[@GengoSenmon]

You didn't explain why Bill Gates' father did that huge favor for him. Without it, he would have had Starbucks stolen from him by the other investor.

[@nightytime]

it was heavily implied

[@GengoSenmon]

@@nightytime Clarify the implication.

[@DavidSmith-do6ji]

Fair play to Bill Gate’s Dad! Absolute legend

[@lindaa9778]

Interesting . Good story . Can you believe I have never had a starbucks coffee 🙁

[@fay4967]

Ur not missing out on anything really lol. It's mediocre at best..at least where im from

[@joeg5414]

I've been maybe 10 times. Always when I end up going with someone, not on my own. I'm not a coffee drinker so yeah. I have friends that live paycheck to paycheck, yet go to Starbucks daily. Kinda dumb. And not just for coffee, they get food and all kinds of crap. $25 a day at Starbucks yet struggling to pay rent.

[@iambrianna.]

new subbie here🥰

[@cornelboss7448]

hey John. could you do a video on Groupon

[@pinkaddiction13]

Just wanna let you know that you have officially made it. I saw a post on Upwork that asked for video editors for a KZbin channel " similar to Magnates Media" ❤❤

[@Milen983]

When some Americans saw farther than their nose, Starbucks was born. Others invented the Italian American pasta and pizza, Panda and so on. Imagine what would happen of all white Americans would travel to Europe at least once in their lives.

[@scronx]

Great visit a about a not-so-great person and empire.

[@mktf5582]

Could you please do Costa Coffee and Greggs.