Howard schultz biography starbucks secret

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Growing up in public housing, Schultz witnessed the financial struggles his family faced, experiences that would later shape his views on business and leadership. Whether it was facing rejection or starting over with his own coffee company, Schultz never gave up on his dream of transforming Starbucks into something special.

His efforts paid off, leading to a significant turnaround and renewed growth for Starbucks, whose stock has returned 16x since then.

A Vision Beyond Starbucks

In 2018, Schultz stepped down as executive chairman and CEO of Starbucks, sparking speculation about a potential run for political office. Together they co-founded the Schultz Family Foundation, focusing on helping young people successfully navigate the transition to adulthood.

Under his leadership, Starbucks grew from eleven stores with 100 partners (employees) to more than 28,000 stores in 77 countries, employing nearly 350,000 partners serving approximately 90 million customers per week. Schultz, fresh from a stint working at a housewares company, saw something that none of the Starbucks founders could envision: the potential of transforming coffee into a social experience.

He was struck by the vibrant coffee culture in Italy, particularly the espresso bars, which served as community hubs. Under his leadership, Starbucks then embarked on an aggressive expansion, growing from 11 stores in 1987 to over 30,000 globally today. As a young entrepreneur, he set out to build a different kind of company, one that delivers business excellence through a culture of compassion.

In 1987, Schultz acquired Starbucks with the help of investors, merging it with Il Giornale and assuming the role of CEO. Under his leadership, Starbucks rapidly expanded, transforming from a small regional company into a global brand. He was captivated by the idea that coffee should be a communal experience, and he knew this was the key to turning Starbucks into something much larger.

Schultz’s humble beginnings instilled in him a deep empathy for working-class individuals, which would later influence his approach to business leadership and employee relations.

Early Career and Entry into Starbucks

After college, Schultz worked in sales and marketing roles at Xerox and then a Swedish housewares company, Hammarplast. His decisive actions revitalized Starbucks, restoring its reputation and financial performance.

During this time, he noticed that a small coffee bean shop in Seattle was placing unusually large orders. He recognized that by treating people with respect, offering them value, and empowering them, businesses could create loyal, long-term relationships.

Schultz also showed that innovation is not just about new products but about continuously improving the customer experience.

Undeterred, Schultz left Starbucks in 1985 to start his own coffeehouse chain, Il Giornale, which successfully brought his Italian-inspired coffee bar concept to life. Schultz’s approach was to expand the brand, focusing on creating a new culture around coffee, a place where people could gather and feel at home. Schultz’s leadership style was always grounded in a deep understanding of people, whether it was his employees or his customers.

Captivated by the passion and knowledge the founders had for coffee, Schultz saw potential for growth and joined the company a year later as the director of marketing.

The Italian Inspiration

A trip to Milan in 1983 was then the big turning point for Schultz.