Starbucks Coffee Corporation, based in Seattle, Washington, has been one of the nation's premier companies in the last two decades in terms of growth, both with physical locations and an ever-increasing customer base. In a country where specialty espresso-based beverages were once considered a niche market, Starbucks has experienced unparalleled growth, tapping into a customer base that was once thought absent in non-European nations. In fact, growth was so substantial that the company was opening an average of one new store a day; however, every company has peaks that are followed by a plateau of growth and income, or in Starbucks case, a massive loss. After seeing 39 consecutive quarters of growth, the company was hit hard by a nearly $7 million loss last quarter. Due in part to over-zealous expansion and a tightening national budget, Starbucks has been forced to rethink their traditional business model in a time when the economy seems forbidding – and an end is not in sight.
Through many of its internal programs and customer-driven initiatives, Starbucks has long been seen as a model of a transformed business. Known more as an international, faceless corporation than a neighborhood coffee shop, Starbucks pioneered distinctive perks for employees that were not customary of regular “fast food” business models, such as benefits for part-time employees and tuition reimbursement. Further, the company placed great emphasis on the employees to make every cafe a customer's “third place”; a place where they are encouraged to spend time and feel comfortable when not at home or work. However, Starbucks remained a very traditional business model when it came to the financial end of the spectrum. Unlike fast-food outlets or even similar business, such as Dunkin' Donuts, S ...