From Humble Beginnings: The History of Starbucks and University Village

Starbucks, a name synonymous with coffee worldwide, began as a single store in Seattle. While many associate the brand with its ubiquitous presence today, its origins are rooted in a passion for quality coffee and a desire to introduce Seattleites to a better brew. This article explores the early days of Starbucks, specifically focusing on its second location in University Village and the surrounding context of Seattle in the 1970s.

The Founding of Starbucks

On March 30, 1971, Jerry Baldwin, Gordon Bowker, and Zev Siegl opened the doors to their new coffee shop at 2000 Western Avenue. The three partners, who had met by chance while college students, had been looking for a business opportunity together. It was Bowker who came up with the idea for a coffee company. At that time, coffee available to most Americans was low-grade, pre-ground, and often poorly brewed. Starbucks aimed to change that by focusing on quality and freshness. The founders believed that once Seattleites tasted a truly great cup of coffee, they would become loyal customers.

The first Starbucks store was a do-it-yourself operation. Carpentry work, including building the counter, coffee bins, and shelving, took place in Siegl's parents' basement. Baldwin handled the electrical work, while Bowker was in charge of painting. Bowker and Siegl also created the outdoor signs.

Their first customer was Dan Chasan, a friend on his way to Pike Place Market with his daughter Sarah. Although they didn't yet sell coffee drinks, the owners brewed him a free sample, showcasing the aromatic beans from various exotic locales like Ethiopia, Columbia, and Guatemala. Chasan purchased Sumatra beans, some tea, and wrote a check for $5.36, marking the beginning of Starbucks' journey.

Seattle in the 1970s: A City in Transition

The year Starbucks was founded was a challenging time for Seattle. The Boeing Recession had hit the city hard, leading to a decline in real estate prices and a general sense of economic hardship. A billboard famously asked that the last person leaving Seattle turn out the lights. However, this economic downturn also meant that rent was cheap, which was good news for entrepreneurs like Baldwin, Bowker, and Siegl. They leased their storefront in the lower level of the old Harbor Heights Hotel for just $137.50 a month.

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Expansion to University Village

Initially, Starbucks bought roasted coffee beans from Peet's Coffee and Tea in Berkeley, California. Alfred Peet, a Dutch immigrant with a family history in the coffee business, served as a mentor to the Starbucks partners. However, in 1972, Starbucks opened a second store at University Village. This expansion marked a significant step for the company, as they invested in a used roaster and began roasting their own coffee in a warehouse near Fishermen's Terminal.

The early Starbucks stores were vastly different from the modern espresso-bar cafes. Instead of sleek, table-filled hangouts with paper cups, the stores featured an old-fashioned handmade counter with bulk coffee bins below. Customers could purchase coffee beans, which would be weighed and bagged. The owners would grind the coffee for you or sell you a grinder for home use. While free samples of drip coffee were offered, brewed coffee was not sold until 1982, when Starbucks opened a store at 4555 University Way NE.

University Village: A Thriving Shopping Center

The success of the second Starbucks location was intertwined with the growing popularity of University Village itself. University Village opened in 1956, a year after Disneyland, and was anchored by Seattle-founded Rhodes Department Store. The shopping center's location was made possible by the construction of the Locks and the subsequent lowering of Lake Washington. The newly dry lake bed had previously served as the Malmo Seed and Nursery Company.

Over the years, University Village has evolved into a preeminent destination for popular brands. Susie Plummer, who became general manager in 2000, has been credited with more than doubling the number of businesses there. The Village has attracted direct-to-consumer brands like Everlane, Reformation, and Warby Parker, which use online sales figures to determine their most promising markets.

Plummer emphasizes the importance of understanding the local customer base. She advises businesses to observe what customers are wearing and doing at the Village. Today, the Village attracts families, college students, and couples, all enjoying the various amenities and offerings.

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For local shop owners, becoming a tenant at University Village is often a dream come true. The management team provides marketing support and fosters a sense of community among the businesses. Vanessa Kimling, who started as part-time seasonal help at Ravenna Gardens, eventually bought the business, highlighting the opportunities available at University Village.

The Evolution of Starbucks

Starbucks began to change significantly in the 1980s. Howard Schultz was hired as marketing director in 1982, and in 1984, Starbucks acquired Peet's stores and roasting plant in the San Francisco Bay area. Schultz resigned in 1986 to start his own business, but in 1987, he and a group of investors bought Starbucks for $3.8 million. Under Schultz's leadership, Starbucks rapidly expanded, becoming the global coffee giant it is today.

The original Starbucks partners each played a crucial role in the company's early success. Bowker focused on publicity and advertising, while Baldwin managed the finances and coffee buying. Siegl oversaw the tea department and explored opportunities for expansion.

The most surprising thing about the creation of Starbucks is how much of it happened by chance. The founders met through a series of coincidences, and their individual skills complemented each other perfectly. Their shared passion for quality coffee and their willingness to take risks laid the foundation for one of the world's most recognizable brands.

Cafe Allegro and its Connection to Starbucks

Another significant player in Seattle's early coffee scene was Café Allegro, located in the University District. Founded by Dave Olsen, Café Allegro is notable for being one of the city's first espresso shops. Olsen purchased coffee from Starbucks and co-developed an espresso roast with them, which was darker than most other roasts but still lighter than the darkest roast. Howard Schultz recognized Olsen's importance, stating that "Dave Olsen is right at the heart of the memory of Starbucks."

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tags: #starbucks #university #village #history

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