Starbucks perks up Houston minority communities as part of $100 million investment

grande investment

That next Frappuccino could help support BIPOC-owned businesses. Courtesy of Starbucks

The Bayou City will be a major beneficiary of a new initiative from Starbucks. The Seattle-based, global coffee giant announced that it has selected Houston as one of 12 U.S. cities that will receive funds from the Starbucks Community Resilience Fund.

Seeded with a $100 million investment, the fund will be used to support small businesses and community development projects in BIPOC (Black, indigenous, and people of color) neighborhoods. In addition to Houston, the program will launch in Atlanta, Detroit, Los Angeles, Miami, Minneapolis, New Orleans, New York City, Philadelphia, San Francisco Bay Area, Seattle, and Washington D.C.

"Starbucks has always been a company focused on caring for our partners, creating experiences for our customers and playing a positive role in our communities and throughout society," Kevin Johnson, Starbucks president and CEO, said in a statement. "We are excited to make this investment as it aligns with our mission and values and supports our aspiration to advance equity and opportunity in the communities we serve."

Working with partners such as the Opportunity Finance Network, Starbucks will select certain Community Development Financial Institutions that will receive funds. CDFIs focus on providing capital and promoting economic development. These institutions will then provide loans to small businesses and community development projects. In addition to money, CDFIs offer mentorship and flexible repayment terms that help projects become successful.

Specific Houston beneficiaries are still unknown at this time, but the funds have the potential to benefit a diverse array of projects, including those focused on addressing the impacts of climate change and investments in neighborhoods that are overlooked by traditional lenders.

For example, as part of a $10 million investment in four, Chicago-based CDFIs, Starbucks helped fund Green Era Sustainability's campus project that includes a 2-acre clean energy generation facility, an urban farm, green houses, an outdoor fresh produce market, a visitor center with classrooms for community activities, and a STEM education center. The project will create 247 construction jobs and 25 permanent jobs in Chicago's Auburn Gresham neighborhood.

"Given the severe impact of the pandemic on the long-disinvested communities CCLF serves, our lending is more important than ever to help these communities grow and thrive," said Bob Tucker, COO for the Chicago Community Loan Fund. "Our customers have urgent needs, and Starbucks investment in CCLF will help tremendously in bringing them the resources they need."

------

This article originally ran on CultureMap.

The coffee company announced three Houston-area solar projects. Courtesy of Starbucks

Starbucks brews up solar energy initiative across Houston and Texas

Green coffee

Coffee shop chain Starbucks is plugging into Texas' solar energy industry in a big way.

Two 10-megawatt solar farms in Texas owned by Cypress Creek Renewables LLC are providing enough energy for the equivalent of 360 Starbuck stores, including locations in Houston, Humble, Katy, and Spring. Separately, Starbucks has invested in six other Texas solar farms owned by Cypress Creek, representing 50 megawatts of solar energy; Santa Monica, California-based Cypress Creek is selling that power to other customers.

Three of the eight solar farms in the Texas portfolio are just outside the Houston metro area. One is in the Fort Bend County town of Beasley, while two of the projects are in Wallis and Wharton.

Starbucks already relies on a North Carolina solar farm equipped with 149,000 panels to deliver solar energy equivalent to powering 600 Starbucks stores in North Carolina, Delaware, Kentucky, Maryland, Virginia, West Virginia, and Washington, D.C.

"Our long-standing commitment to renewable energy supports our greener-retail initiative and demonstrates our aspiration to sustainable coffee, served sustainably," Rebecca Zimmer, Starbucks' director of global environmental impact, says in an April 15 release about its solar investment in Texas. "Now, we are investing in new, renewable energy projects in our store communities, which we know is something our partners and customers can appreciate for their local economy and for the environment."

The solar commitment in Texas aligns with Starbucks' goal of designing, building, and operating 10,000 "greener" company-owned stores around the world by 2025. The Seattle-based retailer expects this initiative — whose features include renewable energy, energy efficiency, and waste reduction — to cut $50 million in utility costs over the next 10 years.

U.S. Bank's community development division teamed up with Starbucks and Cypress Creek on the Texas solar farms. Chris Roetheli, a business development officer at U.S. Bank, says solar tax equity investments like those undertaken by Starbucks are growing in popularity among non-traditional investors.

"Starbucks is taking a unique approach — investing in solar farms regionally to support a specific group of its stores," Roetheli says in the announcement of the solar collaboration. "This is a new concept, and one that I think other companies are watching and may follow. It's an interesting model that allows them to talk specifically about the impact of their investments."

Starbucks' investment comes as Texas' stature in the solar energy sector keeps rising, along with the state's role in the wind energy industry.

According to the Solar Energy Industries Association, more than 2,900 megawatts of solar capacity are installed in Texas. That's enough energy to power nearly 350,000 homes. Among the states, Texas ranks fifth for the amount of installed solar capacity.

Solar investment in Texas exceeds $4.5 billion, with about 650 solar companies operating statewide, the association says. The solar energy industry employs more than 13,000 full-time and part-time workers in Texas, according to the Texas Solar Power Association.

With more than 4 gigawatts (over 7,000 megawatts) of solar capacity expected to be added in Texas over the next five years, the national solar association reported in 2018 that "Texas is poised to become a nationwide leader in solar energy … ."

As it stands now, though, solar supplies less than 1 percent of Texas' electricity.

A 2018 state-by-state report card for friendliness toward solar power assigned a "C" to Texas, putting it in 34th place among the states.

The report card, released by SolarPowerRocks.com, lauds the backing of big Texas cities like Houston, Austin, Dallas, and San Antonio in encouraging residential solar installations.

However, the report card adds, outlying areas in Texas lag their urban counterparts in support of residential solar, "and we'd like lawmakers here to codify more protections and goals for solar adoption, but in the most populous areas, the Lone Star [State] shines."

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Mayor greenlights major solar farm project in south Houston

shine on

Mayor Sylvester Turner and the city council have given the green light on a project that will convert a 240-acre former landfill in Sunnyside into a brownfield solar installation.

The public-private partnership with Sunnyside Energy LLC. received unanimous approval on a lease agreement that will move the project — which is a part of the City's Climate Action Plan and Complete Communities Initiative — forward.

"The Sunnyside landfill has been one of Houston's biggest community challenges for decades, and I am proud we are one step closer to its transformation," says Mayor Turner in a news release. "I thank the Sunnyside community because this project would not have come together without its support. This project is an example of how cities can work with the community to address long-standing environmental justice concerns holistically, create green jobs and generate renewable energy in the process."

The solar field, which is anticipated to be installed and working by the end of next year, will be able to power 5,000 homes and offset 120 million pounds of CO2 each year, according to the release.

"We applaud the actions of Mayor Turner and the City Council in taking this significant step," says Dori Wolfe, managing director of Sunnyside Energy LLC, in the release. "It is a strong vote of confidence for this impactful project. All members of the project team realize that this Sunnyside Solar facility will be an iconic statement in the rejuvenation of the community. We are grateful that Mayor Turner has given us his support."

The city's involvement with the company began in 2017 when Houston joined the C40 Reinventing Cities Competition – a global competition to promote sustainable energy projects. As a part of the competition and through the city's efforts on the initiative, powers at be selected the winning proposal from Wolfe Energy LLC, which formed Sunnyside Energy LLC to execute the urban solar farm project.

Per the lease agreement, the city of Houston owns the land and Sunnyside Energy will be the tenant responsible for permitting, construction, operation, and more.

Houston health company acquired by Seattle tech biz

M&A Moves

A West Coast health tech company has announced the acquisition of Houston-based 2nd.MD.

Accolade Inc., which uses technology solutions to help users better understand their benefits and the health care system, announced last week that it has signed a definitive agreement to acquire Houston-based expert medical opinion company 2nd.MD.

The goal of the acquisition is to further simplify the healthcare experience for employees and increase return on investment for employers, according to a press release from Accolade, and the company will continue to offer 2nd.MD's service on a stand-alone basis as well.

"We share a common vision to help every person live their healthiest life by dramatically improving quality and accessibility of care through a people-focused, clinically-driven support model," says Rajeev Singh, CEO of Accolade, in the release. "Bringing 2nd.MD's world-class Care Team and digital approach with expert medical consultation into Accolade, and continuing to offer it on a stand-alone basis, will have an immediate and measurable impact for our customers, their employees, and the health plans we work with."

"Both companies have built deep relationships with employers and health plans by helping employees navigate the increasingly complex and inconsistent healthcare system," Singh continues. "With the addition of 2nd.MD, we'll nearly double our total addressable market while providing the most comprehensive, integrated healthcare navigation experience available."

2nd.MD supports over 300 employers — connecting more than 7 million people to over 900 nationally recognized, board-certified medical specialists. According to the release, the company reported unaudited revenues of approximately $35 million.

"When it is you or a loved one facing a serious health decision, waiting for weeks to receive a second opinion from an expert isn't acceptable. We've built a scalable Expert Medical Opinion offering that treats every member like family," says Jason Melton, CEO of 2nd.MD. "Combining our Care Teams and technology with Accolade will enhance the reach and quality of support to members from the moment of crisis to the other side of treatment on the path to wellness. We share a common business vision, our cultures are highly aligned around employee purpose and we share a common mission to change healthcare for the benefit of all consumers."

5 PR and marketing tips for Houston startups and small businesses in 2021

guest column

The past year has been a rollercoaster for small businesses. When the pandemic hit, every single person was affected. We've all had to pivot in some way either personally, professionally, or both.

As public relations and marketing professionals who specialize in working with small businesses, we've spent the last 10 months in the trenches with our clients, advising and helping business owners and entrepreneurs navigate these uncertain times. While small business revenue is down since January 2020, it's not all doom and gloom out there – we've seen many other businesses experience unexpected success and growth, and according to economists, we are entering the greatest entrepreneurial economy of our time.

And as we start this new year, there is no better time to invest in business growth and planning. Below are five tips to help you get started.

1. Get smart on your PR

Whether you know a little or a lot about public relations, marketing, and social media, take some time to get caught up on the current landscape. It is constantly changing, and having a better understanding of how traditional media, social media, paid marketing, owned content and all other components can benefit your business will inform decisions about where to allocate your time and resources.

First, assess what stage of business you are in as well as your business goals to determine what PR and marketing tools could be most beneficial to your growth at this time. Not all small businesses are prepared, financially or otherwise, to invest in PR, and there are fundamental steps you can do on your own to get your business positioned to succeed.

With online education booming, there are many free resources and tools at your disposal. We created All You Need Method to simplify PR and marketing for small business owners. You can download our Free PR Roadmap on our website to assess what level of PR support is right for your business. We also created The PR Starter Kit online course to give small business owners the fundamental tools they need to use PR, marketing, and social media to support business growth and build a lasting brand – and it only takes a few hours to complete.

2. Revisit your target audience

The world has changed significantly over the past year and so have the wants, needs, habits, and interests of consumers. As a small business, it's imperative to understand your target audience's current problems in order to relate to them, build trust, and deliver a product or service that is meeting their needs.

Before investing time and financial resources creating and executing a 2021 business plan, take a step back and consider your ideal customer. Outline how the past year has created opportunities or challenges in their life, problems they are facing, new shopping habits, lifestyle shifts, communication preferences, concerns, etc. If you have more than one ideal customer, work through this exercise for each.

With this new perspective, you will be equipped to make business decisions through the lens of how you can better serve your customers, rather than how to increase revenue.

3. Stand for something

Brands that are succeeding today are the brands that are authentic, vulnerable, and that stand for something. According to a global study by Zeno Group in July 2020, consumers are 4 to 6 times more likely to purchase and champion purpose-driven companies.

Having a purpose doesn't require a brand to have a philanthropy component or an outspoken political stance – it's about identifying your specific values and making them apparent through your messaging and leadership within your industry. Values could include committing to sustainable production methods, outstanding customer service, commitment to diversity, or supporting a specific cause. What is most important is that your values are authentic and that you can stand behind them long-term.

As the founder/owner of a small business, you have an opportunity to put a face and values behind the brand so that your company is about more than selling something.

4. Clarify your message

After revisiting your target audience and carefully considering your brand values, incorporate those findings into your messaging. Conduct an audit of your website, social media channels, and all external facing materials, and update your messaging to ensure that if your ideal customer had a 30 second encounter with your brand, they would walk away with your most important messaging points. Important points to consider as you craft new messaging include:

How your product or service solves a problem for or benefits your target audience
Brand values
Points of differentiation

5. Be authentic and communicative

Before the days of social media, a brand had to rely on third parties, including editorials and ads in magazines and newspapers, to spread the word about their brand. Social media and all "owned channels," including a brand's website, blog, and newsletter, have leveled the playing field and allow small business owners to have control over their communication with customers. Through your owned channels, a brand can decide what to post and when, which is incredibly valuable.

While securing press and advertising opportunities is valuable to growth and brand awareness, it's largely outside of one's control. Focus your time and financial resources on communicating with your audience by creating content for your owned channels. Creating content and posting consistently can seem overwhelming to a solopreneur or small team, but there are ways to make it manageable:

Pick only a few owned channels to focus on, prioritizing platforms you are most familiar with using and where your audience is most active
Quality and consistency are more important than quantity. If you're only posting once a week due to bandwidth, commit to that frequency and increase frequency as you are able
To inspire and inform content creation, think about how you can serve your customers through your areas of expertise and what is relevant to both your brand and audience (events, holidays, partnerships, new product launches, etc.)
Create a content calendar so that you can plan out posts a month in advance to avoid last minute scrambling to decide what to post

Once you've worked through these five tips, make a plan to support your business goals - and start thinking in two phases.

Phase 1: Pandemic Home Stretch - Although there is hope with a COVID-19 vaccine, we know we will likely be dealing with the effects indefinitely. Use this time of uncertainty to get your business in the best shape possible.

Phase 2: Post Pandemic - How do you want your business or brand to show up when the world opens back up? It feels far off, but it is closer than you think and there is a huge opportunity for those who are willing to put in the work now.

Remember, these challenging times will pass. There is massive opportunity for the businesses and brands who are willing to reflect, pivot, and plan for a brighter future.