A lot has happened over coffee @ Starbucks!

I had the opportunity to closely observe Starbucks corporate culture as they have a joint venture with Tata Group in India. It was an amazing experience.

They are one of the most passionate teams I have ever worked with.

Very strong belief in the what they do, great design and aesthetics, focus on customer experience and loyalty and much more.

"To inspire and nurture the human spirit–one person, one cup and one neighborhood at a time." is their mission statement that they truly believe in and deliver every time.

It is not uncommon for folks to meet at Starbucks, fall in love and then get married, sometimes also at Starbucks. This has happened many times all over the world.

Two baristas from Mumbai also had found love around that time while working at Starbucks.

The Tata team hosted Howard Schultz in India back in 2017. He addressed the Tata Group CEOs and CXOs in a candid conversation with Dr Mukund Rajan, Tata Brand custodian during that time.

Their detailed conversation link is Dialogues in Customer Centricity and Leadership - In conversation with Howard Schultz, Founder and CEO Starbucks.

Mr. Harish Bhat was the host and a key organizer and as a part of his team, got to closely observe and learn from these giants.

Howard schultz not only focused on the business growth, but he deeply cared for all the "partners" (baristas and other staff at thousands of stores globally) like the head of the family.

It was a sense of deja vu for me when I read the following perspective by an investor from the book "Richer, Wiser and Happier" by William Green.

Here is an amazing excerpt from the book about how Starbucks has created great value for the investors and how this investor found this gem much earlier in the game.

Here is an excerpt from the chapter in the book - "Simplicity Is The Ultimate Sophistication".

In 1992, Fidelity’s William Danoff had the chance to meet Howard Schultz, the mind behind Starbucks, just a week before the company went public with a $250 million market value.

Today the company is valued at almost 110 Billion USD.

Danoff shares insights from his encounter with Howard Schultz from two pages of handwritten notes that capture Schultz’s vision.

Schultz foresaw vast potential in the coffee industry, noting Italy’s 200,000 coffee bars compared to Starbucks’ 139 (that time).

Starbucks aggressively expanded, opening new cafes at a reasonable cost of $250,000 each.

These cafes, by their third year, could generate $150,000 in profits, an impressive 60 percent return on the initial investment.

Danoff highlights the key to Starbucks’ success : very high return on each store.

The company could grow at a rapid pace without external financing.

Initially underestimated by Danoff, Starbucks eventually became a major holding in the Contrafund.

The success story spans two decades, showcasing Starbucks’ remarkable performance.

Earnings per share grew at an annual rate of 27.45 percent, with the stock soaring by 21.32 percent per year. In contrast, the S&P 500 saw earnings grow at 8.4 percent annually, while the index rose just 7.9 percent per year during the same period.

As Danoff traces the lines on a chart illustrating Starbucks’ journey, he emphasizes a crucial lesson: “The stock price is eventually going to follow the earnings.”

This insight encapsulates the essence of long-term investing in businesses with sustained high growth rates.

Starbucks stands as proof of the wisdom of investing for the long run, showing how vision, strategic expansion, and a focus on high returns can lead to extraordinary success.

And in the process a lot of other good things also happened - folks meeting and getting married at Starbucks; founders, professionals and students finding that "3rd space" beyond office and work; jobs getting created all over the world, the investors getting richer and much more.

A lot has happened over coffee and a lot will continue happen over coffee.

Note - Part of this article has been written while sitting at Starbucks Cafe in Mumbai while enjoying "flat white" coffee. Shital Vijapure has also contributed in writing this article.