Starbucks Coffee Company Emergency Response in Multi-Unit Retail

Starbucks Coffee Company Emergency Response in Multi-Unit Retail Stores November 7, 2007

Starbucks Beginnings Pike Place Starbucks Coffee Company Confidential & Proprietary Seattle 1971

Starbucks Today Starbucks Coffee Company Confidential & Proprietary

Starbucks “By the Numbers” Partners (employees) ü 160, 000 + Partners ü 15 – 20 Partners per store ü 300 New Hires Each Week Locations 41 Countries ü 6, 855 US Company Operated Stores ü 14, 396 Stores Worldwide ü Open Approx. 5 Stores Per Day (globally) ü Business ü 50 + million customers per week Starbucks Coffee Company Confidential & Proprietary

Starbucks Today Canada United Kingdom United States Continental Europe Russia Middle East Mexico Egypt Chile Peru Brazil China Korea Thailand Malaysia Singapore Japan Taiwan Philippines Indonesia Australia New Zealand Starbucks Coffee Company Confidential & Proprietary

It Happens Here 1999 Seattle WTO Conference Starbucks Coffee Company Confidential & Proprietary 2001 Nisqually Earthquake 2001 September 11

Natural Disasters Nisqually Earthquake Feb. 2001 Virginia Starbucks Coffee Company Confidential & Proprietary Tsunami –Patong Thailand Dec. 2004 Katrina

Man Made Incidents Starbucks Coffee Company Confidential & Proprietary

Protests & Civil Disorder Starbucks Coffee Company Confidential & Proprietary

If not here, then next door! • Jakarta 2004 London 2005 Starbucks Coffee Company Confidential & Proprietary

Mission Statements Partner & Asset Protection Protect People, Secure Assets, Support Mission Business Continuity Lead the organization in preparing for, responding to, and recovering from large-scale business disruptions to protect our partners, customers, assets and brand integrity Starbucks Coffee Company Confidential & Proprietary

Global Comprehensive Program Business Recovery Plan and implement procedures to restore Starbucks site operations at temporary locations and recover normal Emergency Response Develop, implement and test policies, procedures and actions to be followed in the event of operations. an emergency. International Operations – Program Administration – Training and Awareness Plan for the recovery of critical IT assets including, network, hardware, and data to meet RTO/RPO requirements. I. T. Disaster Recovery Starbucks Coffee Company Confidential & Proprietary

Global Plans ü ü ü Facility Displacement Pandemic Crisis Communication IT Recovery Supply Chain Critical Incident Response Starbucks Coffee Company Confidential & Proprietary

Critical Incident Response - Snapshot 2004 • • • 2005 • • • 2006 • • 2007 • • • Hurricane Ivan & Charley G 8 Summit Tsunami UK Transit Bombings Southern California Fires NY Transit Strike Civil Protests Spinach Withdrawal Boil Water Alerts East Coast Flooding Northwest / Denver Weather Virginia Tech New York City Steam Explosion Minnesota Bridge Southern California Fires Starbucks Coffee Company Confidential & Proprietary j

Store Preparedness ü ü Follow the guidance of civil authorities In store supplies ü First Aid Kit provided (with re-order instructions) ü All Hazards “Go” Bag (with re-order instructions) ü Emergency Evacuation Packet ü In store plan documents ü Planned Evacuation ü ü Shut down procedures Re-opening procedures ü Emergency Evacuation ü Protest & Civil Disorder Plan Starbucks Coffee Company Confidential & Proprietary

Planned Evacuation: Hurricane Response Protocols Pre-Storm Preparation Checklists (starting 5 days out) Communications Guidelines Store Closing Preparations Store Reopening Criteria Media Relations Guidelines Partner/Red Cross/Government Contact Information Starbucks Coffee Company Confidential & Proprietary

Store Resources Evacuation Procedures Weekly Schedule What to do during & after an evacuation Important Numbers • District Manager • Local P&AP Partner Contact List Store Property Assessment Checklist All Hazards Emergency “Go” Bag Battery Operated Flashlight Battery / Wind-up AM / FM Radio Battery Operated Lantern High Pitched Whistle 2 Six Hour Glow Sticks 2 Mylar® Thermal Blankets 3 Pair of Additional AA batteries (unopened) Starbucks Coffee Company Confidential & Proprietary

Store Resources Emergency Evacuation Packet content: ü Meeting locations identified (not other Starbucks) ü ü ü Contact information ü ü ü Primary meeting location (at least 300’ or 2 blocks distance) Secondary meeting location Hospital/medical facility location & contact number Local leadership contact numbers Corporate reporting contact numbers Partner home/cell phone numbers Out of area of contact phone number Store property checklist ü Condition assessment upon return Starbucks Coffee Company Confidential & Proprietary

Protest Preparedness Successful Practices: ü Be sure your store is well stocked with Incident Reports. Remove all loose objects from the exterior of the store ( i. e. – patio furniture, rocks, planters, garbage cans, etc. ) ü ü Build in transportation contingencies. Stay apprised of the details and consider having a radio in the store in the event of a public announcement, such as a curfew. ü Make sure all partners have their Partner Cards and a photo I. D. with them when traveling to and from work. ü ü Remove Customer Comment Cards. Starbucks Coffee Company Confidential & Proprietary

Leadership Resources Emergency Management Council Core Crisis Team Local Response Team General Incident Preparedness Protest Preparation & Response • Boil Water Activities • Severe Weather • Store Evacuation Guidelines Emergency Communications Partner Resources Information Government Resources Contact Information Starbucks Coffee Company Confidential & Proprietary

Communications Starbucks Coffee Company Confidential & Proprietary

Communication Hotline Starbucks Coffee Company Confidential & Proprietary

Communication Hotline Activation Starbucks Coffee Company Confidential & Proprietary

Test, Practice & Benchmark ü Conduct annual communication test ü Conduct annual table top exercises ü Benchmarking Enterprise BCM – Crisis Management Planning (1) Which of these statements best describes the current state of your organization’s crisis management plan? Alternative Reponses 2005 An enterprise-wide business continuity management program has been established for all critical functions. 7. 0% Crisis management and emergency response team plans are developed and tested annually. Enterprise BCM – Status of Business Continuity Program (1) Which of these statements best describes the current state of your organization’s business continuity management program? Alternative Reponses 2005 34. 4% An enterprise-wide business continuity management program has been established for all critical functions. 41. 8% Crisis management and emergency response team plans are informal and partially tested. 15. 0% Business Continuity Plans have been developed and documented for most critical business functions 28. 2% Crisis management and emergency response team members are identified and a crisis command center has been established. 23. 1% Business Continuity Plans have been developed and documented for a limited number of business functions. 13. 6% Responsible executives are identified but there is no formal crisis management plan or assigned roles and responsibilities. 20. 5% Business Continuity Plans are currently being developed 10. 6% Business Continuity Plans have not been developed or documented 5. 9% (1) Survey - Deloitte & Contingency. Planning. com 2006 Starbucks Coffee Company Confidential & Proprietary

Notification System US & Canada Store Notification Exercise September 20 First Call Second Call Third Call Summary Stores Called 7136 2017 836 7136 Qualified 5119 1181 318 6618 Outliers 2017 836 455 1 Hr. 18 Min 28 Min 10 Min 1 Hr. 56 Min 72% 59% 38% 94% Time for calls Success Percentage Starbucks Coffee Company Confidential & Proprietary

Thank you for all you do & provide! Starbucks Coffee Company Confidential & Proprietary

Rick Gipson director, US Partner & Asset Protection rgipson@starbucks. com 206. 318. 6647 Starbucks Coffee Company Confidential & Proprietary