Howard Schultz, the former chairman and CEO of Starbucks, is a name synonymous with coffee culture. He is widely known from transforming a small coffee been retailer into a global coffeehouse phenomenon.
His journey from a modest upbringing to leading one of the world’s most recognizable brands in the arguably commoditized industry of coffee is really a remarkable achievement. This blog takes you through Schultz’s life, his impact on Starbucks, and his broader influence on business and society at large.
Howard Schultz Brooklyn Beginnings
Howard Schultz was born in Brooklyn, New York, in 1953, into a poor working-class family. Fred Schultz, his father, worked a series of low-paying jobs, including truck driver and factory worker. He grew up in Canarsie public housing projects and graduated from Canarsie High School in 1971.
Schultz proceeded to attend Northern Michigan University from 1971to 1975, where he was a member of the Tau Kappa Epsilon Fraternity. He graduated with a B.A in communications. One vital moment in his early life occurred when his father broke his ankle on the job and was fired without medical benefits or compensation.
His father’s experience immensely influenced Schultz’s perspective on employee welfare and benefits, a theme he would carry on into his future business practices.
Howard Schultz Career Highlights
Howard Schultz’s career journey goes way back to 1976 when he worked as a salesman for Xerox in New York. In 1979, French private equity firm PAI Partners recruited him to serve as the general manager of Hammarplast, a Swedish kitchenware manufacturer’s U.S.
He joined the Seattle-based Starbucks in 1982 as director of retail operations and marketing and became chairman in 1985. A pivotal moment in his career journey came during a buying trip to Milan, Italy, in 1983, where he was introduced to the concept of espresso beverages.
Taking inspiration from his experience, Howard Schultz decided to bring a similar idea to the United States. However, Starbucks founders were initially reluctant to the idea, choosing to focus solely on selling high-quality coffee beans and equipment. This led to him leaving Starbucks in 1985 to start his own coffeehouse chain, II Giornale, which became an instant success.
In 1987, he seized the chance to purchase Starbucks for $3.8 million, merging it with his own company, II Giornale. Under his leadership, Starbucks embarked on aggressive expansion, growing from 11 stores in 1987 to over 30,000 globally to date.
Howard Schultz stepped down as Starbucks CEO in 2000 but would remain as chairman. He returned in 2008 as CEO and oversaw the closure of 900 stores, implementing an ambitious strategy to secure new avenues of growth.
His emphasis on quality and customer experience helped build a loyal customer base. Schultz understood that the coffeehouse experience was as much about community as it was about the product.
Howard Schultz Major Achievements
Howard Schultz’s major achievements include transforming Starbucks from a regional coffeehouse chain into a global coffeehouse giant. He is also widely known for his sheer commitment to social responsibility and ethical business practices.
Schultz has garnered many awards and honors for his business achievements and philanthropic efforts, including; Ernst & Young Entrepreneur of the Year Award (1992), Time magazine’s “100 Most Influential People in the World” (2007), Forbes’ “World’s Billionaires” list (2010), and National Medal of Freedom (2018).
Schultz is reported to have a net worth of $3.5 billion. Beyond Starbucks, Schultz owned the Seattle Supersonics NBA franchise and publicly considered running in multiple US presidential elections.
Howard Schultz is married to Sheri Kersch, and they have two children together. He is known to be a coffee aficionado, consuming four to five cups of coffee daily.
