The Impact of Starbucks

by Derek Markham

Many people love Starbucks. The premium coffee company has a loyal following of coffee and tea consumers imbibing something like a million drinks per week at its 16,000 stores worldwide. The java giant has earned the title of the world's largest coffeehouse company. There's even one guy on a mission to visit every single Starbucks store in the world. But Starbucks is also one of those companies people love to hate. Whether it's the issue of recyclable cups, Fair Trade coffees, labor rights, corporate social responsibility, predatory business tactics, or over-roasted coffee, there's no shortage of strong anti-Starbucks sentiments these days. Probably the most outspoken is the site I Hate Starbucks.
Is the real impact of Starbucks benevolent or evil?

On the positive side:

   The explosive growth of Starbucks has caused a huge percentage of the population to think of coffee as something other than that weak brew served by the gallon at all-night diners, which is a great thing for the coffee industry in general. Before Starbucks, there was coffee. Now there's Brazilian Dark Roast, Ethiopian Yergachaffe Medium Roast, double cappuccinos, and lattés galore. This alone opened up the doors for the multitude of small roasters who now have a local market.
   The introduction of the language of coffee to the world at large is another example of the 'Starbucks effect' - how many people knew what an Americano or Macchiato was before Starbucks? Not that long ago espresso drinks, which are now commonly consumed after a quick run through the drive-thru or coffee kiosk in the grocery store, were exotic beverages from the other side of the world. Think about it - did you ever hear someone order a double iced mocha from a coffeehouse before Starbucks went big? But now, every local coffee shop has regulars who drink them daily.
   Starbucks recently agreed to double the amount of Fair Trade Certified coffee beans they purchase, committing to 40 million pounds of beans this year, which will make

the company the largest buyer of Fair Trade coffee in the world. When the amount of coffee to be sold at a Fair Trade premium is doubled, those growers who participate are much further ahead than the average coffee growers.

On the negative side:

   The distinctive Starbucks roast reminds many people of bitter, burnt coffee, but those who shop there to “keep up with the Jones” won't complain about it, as it's considered almost heresy to second-guess the roaster.
   The amount of Fair Trade coffee that Starbucks purchases each year is less than 10% of its total purchases, which leads one to wonder why it's such a small percentage. According to the company, "Starbucks bought 385 million pounds of coffee in 2008. Seventy-seven percent of that – 295 million pounds worth – was responsibly grown and ethically traded, meeting Starbucks™ Shared Planet™ ethical sourcing principles for coffee."
   Organic coffee doesn't play a big part at Starbucks, except for the company's promotions, even though the price paid for organic coffees is very similar to those without organic certification. I can buy similar quality organic, Fair Trade certified coffee from my local co-op for less than I’d pay for a

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comparable quality (though not organic) coffee from Starbucks. For many people, organic is just as important as Fair Trade, and with the already extravagant prices at Starbucks, the company could sell 100% organic coffee and their consumers would purchase it without blinking.
The price paid by Starbucks, whose whole bean coffees retail from $10 per pound and up, is reported to be an average of $1.49 per pound (only 13 cents higher than the commodity, or C class, price for coffee) - but they don't say whether it’s the middle man or the grower who gets that money. According to the company, "In 2008, 295 million pounds of the coffee we bought was purchased from suppliers who have been verified and approved under C.A.F.E Practices guidelines." The Coffee and Farmer Equity (C.A.F.E.) guidelines were developed by Starbucks and are completely separate from any Fair Trade guidelines.
With an average of a million drinks a week being poured by Starbucks baristas, the company goes through huge amounts of disposable coffee cups, even though there are better alternatives out there (beside bringing your own cup). According to the company, "By 2015, our goal is for 100 percent of our cups to be reusable or recyclable." But for a company who touts their corporate

environmental stewardship, this pledge is not a major compromise. Starbucks already gives customers a discount of 10 cents per drink for bringing their own cup, and those who think the company could do much better point out that it wouldn't take much more to actually supply compostable or recycled content cups right now - not in five years.
The existence of 16,000 Starbucks stores worldwide means that in many places there's a store on every corner, pushing out local shops and sparking parodies, such as the Onion's, "New Starbucks Opens In Rest Room of Existing Starbucks". And because Starbucks is selling more than coffee (and more than CDs and highbrow coffee gadgets), the company has been the target of those who condemn the chain: "It’s not about coffee. It’s about status. It’s about the corporate takeovers, the loss of the small town feeling, industrializing, standardizing, and conformity. Every city corner, every shopping mall, every airport seems to come standard with a Starbucks." There are even those who consider Starbucks coffee to be “alien gag juice”.

So, is Starbucks evil?

This writer, through a long relationship with local coffee houses and organic retailers, has come to see the coffee giant's corporate

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responsibility, ethical sourcing, and environmental statements as another form of greenwashing, and refuses to patronize Starbucks. On the other hand, I know of plenty of people who cite Starbucks corporate donations and environmental efforts as reasons to support them, so it's clearly a divisive topic. I don't think there are any easy answers, only our personal choice as to whether we give our money to the biggest coffeehouse company in the world. I choose no.
I'd like to know if you support Starbucks, and why (or why not). Please leave me a comment!

Derek Markham is a father, writer, and social media butterfly who enjoys bikes, bouldering, and slacklining. He can usually be found on Twitter, Natural Papa, Twilight Earth, Blue Living Ideas, and Green Living Ideas, as well as dropping random goodness into DerekMarkham.com. Connect with him on Facebook.

The Impact of Starbucks