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ManagementGrowth StrategyFood & BeverageBeginner1990s
Starbucks: Global Third Place Strategy
The challenge
In 1987, Howard Schultz acquired Starbucks with just 6 stores. The US specialty coffee market barely existed — most Americans drank diner drip coffee. Schultz needed to create an entirely new consumer behavior and then scale it globally.
The strategy
Schultz borrowed the 'third place' concept from Italian café culture — a place beyond home and work where people linger, feel welcome, and belong. The strategy was to sell an experience and a sense of community, not just coffee.
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Try the full case free →Key lessons (preview)
- Sell the experience and feeling, not just the product.
- Consistency at massive scale creates deep customer trust.
- Localize specific elements while protecting the soul of your brand.