When people think of Starbucks today, they see a coffee empire with stores on nearly every corner. But it wasn’t always that way. In fact, Starbucks started as a small coffee bean retailer in Seattle, with no lattes, no caramel macchiatos, and definitely no global ambitions. The man who changed all that? Howard Schultz. His story isn’t just about coffee—it’s about vision, resilience, and the belief that business can be about more than just profit.
Humble beginnings
Howard Schultz was born in Brooklyn, New York, in 1953. His family struggled financially, and he grew up in public housing. Watching his father work tough blue-collar jobs without benefits left a deep impact on him. He knew early on that he wanted to build something different—a company that took care of its people.
Despite financial challenges, Schultz worked his way through college and eventually landed a job in sales at a Swedish company that sold kitchenware. That’s where he first came across Starbucks, a tiny coffee company in Seattle that was buying coffee makers from his employer. Intrigued, he visited the store and immediately saw potential.
Bringing the Italian café culture to America
Schultz joined Starbucks in 1982 as the director of marketing, but at the time, the company was nothing like the Starbucks we know today. It didn’t sell espresso drinks—just high-quality coffee beans for people to brew at home.
Everything changed when Schultz took a trip to Italy in 1983. Walking through the streets of Milan, he saw coffeehouses filled with people, not just grabbing a quick cup but treating coffee as an experience—socializing, relaxing, enjoying life. He realized that America had nothing like this.
Schultz rushed back to Seattle with a bold idea: Starbucks needed to stop just selling beans and start selling the café experience. The owners weren’t convinced. They wanted to keep things simple, so Schultz left to start his own coffee chain, Il Giornale, based on the Italian model.
Taking over Starbucks
Schultz’s café was a success, and in 1987, when the original Starbucks founders decided to sell, he jumped at the chance to buy the company. He merged it with Il Giornale and began transforming Starbucks into what we recognize today—a place where coffee was more than just a drink; it was a lifestyle.
Under his leadership, Starbucks grew rapidly. By the early 1990s, stores were opening across the U.S. By the 2000s, Starbucks had become a global brand, expanding into Asia, Europe, and beyond.
But Schultz didn’t just focus on growth. He wanted Starbucks to be a company that treated its employees with dignity. He introduced benefits for part-time workers, including health insurance and stock options—something almost unheard of at the time. It wasn’t just good ethics; it was smart business. Happy employees meant better customer service, and better service meant loyal customers.
Challenges and a comeback
Not everything was smooth sailing. As Starbucks expanded, it faced criticism—some felt it was growing too fast, others thought it was losing its soul. By 2008, the company was struggling. Sales were down, and Starbucks stores were becoming more like fast-food chains than community cafés.
Schultz, who had stepped down as CEO in 2000, returned to the role to fix things. He shut down hundreds of stores, re-trained baristas, and refocused on quality. Instead of chasing profits, he wanted to bring back what made Starbucks special—great coffee and a welcoming atmosphere. It worked. Starbucks rebounded and became stronger than ever.
Beyond Starbucks
Schultz has always been more than just a businessman. He’s been vocal about social issues, from racial equality to veterans’ rights. He even considered running for U.S. president in 2020 but ultimately decided against it.
His journey—from a kid in Brooklyn’s public housing to the head of a global coffee empire—is proof that business can be personal. Schultz didn’t just build Starbucks; he changed the way the world thinks about coffee. And along the way, he proved that success isn’t just about making money—it’s about making a difference.
