Starbucks is a global icon. What began as a single coffee store in Seattle, owned by separate owners, was transformed by Howard Schultz into the most recognizable coffee brand in the world. But what is the secret to their success?
Inexpensive Status.
You might think,
“$4 for a coffee is expensive!”
And you’re right — $4 is a lot to spend on a cup of coffee. But compared to other high-status items, $4 is next to nothing.
Consider these examples:
A Chanel bag can cost $5,000 or more.
An entry-level Mercedes costs around $50,000.
Starbucks sits in the upper echelon of coffee — it’s a luxury you can carry around for just a few dollars.
When you hold a Starbucks cup, people instantly associate you with a high-status brand. Howard Schultz’s genius was building this brand prestige through quality and atmosphere.
Think about the experience Starbucks offers:
Comfortable, upscale furniture and decor.
Clean, friendly, and inviting environment.
Baristas — not just staff — who are highly trained and respected.
Generous policies like replacing your coffee if you spill it, no questions asked.
A top-down culture that values excellent hiring and offers great employee benefits.
This approach attracts high-quality employees, which enhances the customer experience even further.
Exclusivity and significance are fundamental human needs. As Tony Robbins highlights, the need to feel important is one of the six core drivers that motivate us.
We love feeling part of something special. Wearing an expensive watch or carrying a designer handbag signals success to ourselves and others.
Starbucks gives us that same feeling — status at an affordable price.
As Groucho Marx said:
“I don’t care to belong to any club that will have me as a member.”
But ironically, we all crave that sense of belonging and importance.
No matter your business, creating an experience that delivers value and status can keep customers coming back.
It’s not just about the product — it’s about how you make your customers feel.
Starbucks proves you don’t need to be the most expensive to be seen as the most prestigious.
Would you like help building a brand that resonates like this? At Jarbly Venture Labs, we help entrepreneurs create powerful brands and memorable customer experiences. Reach out to partner with us or bring your idea to life.