**Starbucks Introduces Debit Card**

Starbucks is a resounding restaurant success story. Beginning with its first coffee house in 1971, Starbucks has grown to more than 24,000 locations. After opening its first international outlet in the mid-1990s, Starbucks now operates in more than 40 countries outside North America.

Besides selling beverages, pastries, confections, and coffee-related accessories and equipment at its retail outlets, Starbucks also purchases and roasts high-quality coffee beans in several locations. The company’s objective is to become the most recognized and respected brand in the world. Starbucks maintains a strong environmental orientation and is committed to taking a leadership position environmentally. In addition, the company has won awards for corporate social responsibility through its community-building programs, its strong commitment to its origins (coffee producers, family, community), and the Starbucks Foundation, which is dedicated to creating hope, discovery, and opportunity in the communities where Starbucks resides.

In November 2001, Starbucks launched its prepaid (debit) Starbucks Card. The card, which holds between $5 and $500, can be used at virtually any Starbucks location. The card was so popular when it was first released that many stores ran out. By mid-2002, Starbucks had activated more than 5 million of these cards. It is believed that the card accounted for a large portion of the company’s 7% same-store increase in sales in early 2002 and that it is responsible for attracting many new patrons to the store. As customers "reload" the cards, it appears they are placing more money on them than the initial value of the card.

Starbucks has gone on to promote its Starbucks Card as a flexible marketing tool that can be used by individuals as a gift of thanks and appreciation for friendship or service and can be used by companies to reward loyal customers and as an incentive to employees.