Howard Schultz

Lore & Background

Howard Schultz was born to Ashkenazi Jewish parents in Brooklyn, New York, and grew up in the Canarsie public housing projects. He graduated from Canarsie High School in 1971 and earned a B.A. in communications from Northern Michigan University, where he was a member of Tau Kappa Epsilon fraternity. After college, he worked as a salesman for Xerox and later as general manager for a Swedish kitchenware manufacturer's U.S. subsidiary, where he first encountered Starbucks in 1981.

Schultz joined Starbucks in 1982 as director of retail operations and marketing. Inspired by Italian espresso bars during a 1983 trip to Milan, he proposed that Starbucks offer espresso beverages, but the owners declined. He left in 1985 to open his own coffee shop, Il Giornale, raising $400,000 from investors including Starbucks. In the late 1980s, Il Giornale merged with Starbucks, and Schultz rebranded the combined company under the Starbucks name. He took the company public in 1992, using a $271 million valuation to double its store count.

Schultz stepped down as CEO in 2000 but returned in 2008 during the financial crisis, succeeding Jim Donald. He led mass firings, closed hundreds of stores, and enforced fair trade standards. He orchestrated acquisitions, introduced a national loyalty program, and aggressively expanded in China, helping reconcile the country's tea culture with coffee consumption. He stepped down again in 2017, returned as interim CEO from 2022 to 2023, and left early in March 2023.

Reader's Guide

Howard Schultz's significance lies in his transformation of Starbucks from a regional coffee bean retailer into a global cultural and commercial phenomenon. By introducing Italian-style espresso drinks and positioning Starbucks as a 'third place' social hub, he is credited with launching the second wave of coffee culture in the United States, particularly in Seattle. His aggressive expansion strategy, including large-scale distribution deals and a 1992 IPO that funded rapid store growth, made Starbucks the largest coffee-house chain worldwide. Schultz's return during the 2008 financial crisis stabilized the company through cost-cutting, store closures, and ethical sourcing initiatives. His later focus on China helped adapt coffee consumption in a traditionally tea-drinking market. Beyond business, Schultz has been an outspoken neoliberal, considered socially liberal and fiscally conservative domestically, and a 'liberal hawk' in foreign policy. He publicly considered independent presidential runs in 2012, 2016, and 2020 but declined to enter all three contests. His Schultz Family Foundation supports military veterans and youth employment. Described as the 'Ray Kroc of his generation,' Schultz's legacy is that of a businessman who reshaped global coffee retail and consumer habits.

Did You Know?

• He was named the 209th-richest person in the U.S. by Forbes with a net worth of $4.3 billion as of October 2020.
• Schultz wrote four books on business.
• He launched the Starbucks College Achievement Plan in partnership with Arizona State University, offering free tuition to eligible employees.