Starbucks recovery plan is working. Here's how Mike Khouw says to trade the coffee giant

In the 1990s, there was perhaps no cooler place than a local Starbucks . The company's longtime CEO Howard Schultz recalled going to Milan, sitting in one of the many coffee shops and having an epiphany. He saw how a simple, mid-afternoon expresso could lift the spirits of a city and thought, Why not bring that to Seattle? Of course, replicating the tone and tenor of Milan is easier said than done, so Schultz, always the marketing savant, repackaged the experience. Sandstone floors, comfy chairs and Wi-Fi replaced the more romantic Italian grottos, but the effect was still the same: a seven-minute vacation from an urban jungle. And worked. Brilliantly. Starbucks went form 700 stores in the mid 1990s to 16,000 today.