A successful coffee tale from a true believer

Most of the companies put the shareholders on top and the employees at the bottom. But we have turned it upside down.

We said we cannot create long-term value for the shareholders unless we create long-term value for the employees. Though that philosophy started in the US, it now percolates to other markets like China also.

It is an emotional journey to see the Starbucks partners. They are so authentic and so genuine. You cannot manufacture that.

What's your plan in the smaller cities of China?

Some of our new stores will be in the third- and fourth-tier cities. We have to earn the respect of those customers in small cities, but the reputation of Starbucks will stand us good as we expand.

Do you plan to bring new businesses such as Teavana to China?

We plan to introduce Teavana beverages in Starbucks stores in China this year and later on have exclusive Teavana stores. But for now, there will be just Teavana beverages in Starbucks stores. Globally, tea outnumbers coffee in terms of customers and much of that growth is coming from young customers. Teavana tea is more suited for this segment and the flavors and innovation we create are targeted at the younger generation.

Starbucks opened its flagship store in Tmall.com in December. What will be the next steps in your expansion strategies?

I think it's fair to say that our digital and e-commerce as well as mobile plans will continue to foster new innovation this year.

We hope to bring Mobile Order & Pay into China, but I cannot tell you exactly when.

We just run the Mobile Order & Pay in the US and it is relatively new. It has been received very well. I think you will see that coming to China soon.

How do you foster happiness among your local employees?

The culture and the value of the company runs very deep. We have proved that culture is not American.

It is the human condition. You treat people with great respect and you honor them, whether they are American or Chinese, or Asian or Middle Eastern.

In China we have 30,000 people working for Starbucks and they feel that they are being treated with great respect. That is what we want to show to our customers.

What is your ideal company?

I grew up in the Canarsie Bayview Houses of the New York City Housing Authority, which provides public houses for low-income residents. I had lots of dreams and aspirations, but I was also perturbed by the endless pain and suffering around me.

The biggest concern for me was that my father, who was uneducated, had a series of very bad jobs. As a result, he was not respected or valued at his work place.

As he got older, I noticed that he became bitter. I never imagined or could believe that one day I would be in a position to start my own company or grow a global company.

All along, as we were thinking about the future, what I had in my mind was trying to build the company that my father never got a chance to work for.

In 1987, we had 11 stores and 100 employees. We did not have partners in America then.

But we had the dream and expectations of building a different kind of company, a company that makes profits and shares it with employees.

I had no money to build that company. I had to go outside to find money from other investors. When I told them about my theory of building a different kind of company and about sharing success, most investors said no. They said you cannot build a company that gives so many things back to its employees. You have to give that to the shareholder, they said.

I believe that is the wrong thing to do. We had to take the road less traveled.