Why That Worked #11: Starbucks—The Brand that Changed How the World Drinks Coffee

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Mar 19, 2025

Discover how Starbucks turned coffee drinking into a rich cultural experience. The founders discuss the emotional connections to coffee rituals and the brand's innovative strategies that shaped consumer habits. Explore the concept of the 'third place' and how Starbucks became a community hub. Learn about Howard Schultz's visionary leadership and its role in the company's dramatic rise. They even deliberate whether Starbucks still lives up to its legendary status or if its glory days are behind it.

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INSIGHT

Coffee Franchise Challenges

In the 90s, a coffee franchise seemed destined to fail in America due to a lack of leisure time and walkable cities.
High prices and the novelty of specialty coffees were also barriers, as coffee was simply a commodity.

ANECDOTE

Pre-Starbucks Portland

Donald Miller fondly remembers pre-Starbucks Portland with its walkable neighborhoods and unique coffee shops.
He frequented Powell's bookstore and local Italian cafes, crediting the coffee shop culture for inspiring books like "Blue Like Jazz".

INSIGHT

The Third Place

Howard Schultz's success stemmed from creating a "third place" between home and work.
This concept resonated with Americans despite cultural differences with Europe, where coffee shops served a stronger community function.

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Exciting news, Hero Makers! We’re sharing a new episode of Why That Worked – Presented by StoryBrand.AI, with Donald Miller back in the host seat. This new show uncovers why certain ideas, brands, and strategies succeed—so you can think differently and apply those insights to your business and life.

We’re only sharing these episodes in the former Marketing Made Simple feed for a limited time! Catch them early every Monday by subscribing to the StoryBrand YouTube Channel or following Why That Worked wherever you listen to podcasts.

Now, enjoy this week’s episode of Why That Worked!

If someone told you in the ’90s that people would happily pay $5 for a cup of coffee, you probably would’ve laughed. Before Starbucks, coffee was just… coffee. It wasn’t an experience, a ritual, or a “third place” between home and work. So how did one company transform a simple commodity into a global phenomenon? The rise of Starbucks wasn’t just about caffeine—it was about community, habit-building, and a relentless pursuit of consistency.

In this episode, hosts Don and Kyle dive into the fascinating story of Starbucks, breaking down how a small Seattle coffee shop grew into a 35,000-location empire. They explore the visionary leadership of Howard Schultz, the brand’s impact on American culture, and how Starbucks managed to make coffee both an addiction and an experience. Plus, they debate whether Starbucks is still as great as it once was—or if its best days are behind it. Listen in for a deep dive into what made Starbucks work.

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