The History of Starbucks: From Moby Dick to Global Coffee Chain

Ever wondered how Starbucks went from a single shop in Seattle to one of the most recognizable coffee brands in the world? Whether you’re sipping from a paper cup or brewing at home, understanding how the brand evolved helps explain why it became a daily ritual for millions.

In short: Starbucks was founded in 1971 in Seattle by Jerry Baldwin and Gordon Bowker as a coffee bean and spice shop. In 1987, Howard Schultz bought the company for $4 million, transformed it into an Italian-style coffeehouse, and drove its global expansion—by 2006, there were over 9,000 locations worldwide.

The Origins: A Name from Moby-Dick

The name Starbucks comes from the classic 19th-century American novel Moby-Dick by Herman Melville. The founders chose it to evoke the seafaring tradition of early coffee traders, specifically referencing the first mate of the Pequod, Starbuck. This literary nod set the tone for a brand that would later become synonymous with coffee culture.

The Founding: Seattle’s First Specialty Coffee Bean Shop

In 1971, Jerry Baldwin, Gordon Bowker, and Zev Siegl opened the first Starbucks store at Pike Place Market in Seattle. At the time, it wasn’t a café but a retailer selling high-quality coffee beans, tea, and spices. The original logo even featured a siren inspired by maritime history, tying back to the name’s literary roots. The focus was on providing fresh roasted coffee beans to customers, not brewed drinks.

The Transformation: Howard Schultz and the Italian Coffeehouse Vision

In 1987, Howard Schultz purchased Starbucks for $4 million. He had previously worked for the company as director of retail operations and marketing, and was inspired by Italy’s espresso bar culture during a trip to Milan. Schultz envisioned Starbucks as a “third place” between home and work where people could enjoy espresso-based drinks and community. Under his leadership, the company shifted from selling beans to serving brewed coffee and espresso drinks, eventually rolling out the iconic Frappuccino and expanding the menu beyond just coffee.

Global Growth: From North America to Worldwide

By 2006, Starbucks had expanded to more than 9,000 stores across North America, Latin America, Europe, the Middle East, and the Asia-Pacific region. The brand became especially popular among students and urban professionals in the U.S. and Canada. Stores often appeared in non-traditional retail locations such as supermarkets and bookstores—though Starbucks didn’t own those businesses. The company kept its pricing competitive, rarely exceeding that of other major coffee retailers.

Frequently Asked Questions

What year was Starbucks founded?

Starbucks was founded in 1971 in Seattle, Washington, by Jerry Baldwin, Gordon Bowker, and Zev Siegl as a coffee bean and spice shop.

Who bought Starbucks in 1987 and why?

Howard Schultz bought Starbucks in 1987 for $4 million. He wanted to transform it into an Italian-style coffeehouse focused on espresso drinks and a “third place” community experience.

What was Starbucks originally called and what did it sell?

Originally, Starbucks sold high-quality coffee beans, tea, and spices. It did not serve brewed coffee drinks initially. The name comes from the character Starbuck in Herman Melville’s Moby-Dick.

How many Starbucks stores were there by 2006?

By February 2006, Starbucks had over 9,000 stores globally, spread across North America, Latin America, Europe, the Middle East, and the Asia-Pacific region.

Why did Howard Schultz change Starbucks’ business model?

After being inspired by Italy’s espresso bar culture, Schultz aimed to create a social space where people could enjoy quality coffee drinks, leading to the shift from a retail bean shop to a café-style coffeehouse.

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