Howard Schultz

Howard Schultz
Schultz in 2019
Howard Schultz
Born	19 7, 1953
Birthplace	New York City, U.S.
Nationality	American
Occupation	Businessman, author
Known for	Leadership of Starbucks; co-ownership of Seattle SuperSonics
Education	Northern Michigan University (BA)
Children	2
Awards	NAACP National Equal Justice Award

Howard D. Schultz (born July 19, 1953) is an American businessman, author, and philanthropist who served as chairman and chief executive officer of Starbucks across three separate tenures: from 1986 to 2000, from 2008 to 2017, and as interim CEO from 2022 to 2023. Born into a working-class family in the public housing projects of Brooklyn, New York, Schultz joined Starbucks in 1982 when it was a small retailer of whole-bean coffee, and over the following decades transformed it into the largest coffeehouse chain in the world. His leadership oversaw the company's initial public offering in 1992, its expansion to tens of thousands of locations across dozens of countries, and the development of a coffee culture that reshaped consumer habits in the United States and internationally. Schultz has been described as "the Ray Kroc of his generation" for his role in scaling the Starbucks brand through rapid, franchise-like expansion. Beyond Starbucks, Schultz owned the Seattle SuperSonics basketball team from 2001 to 2006, authored four books on business and leadership, and publicly explored independent candidacies for the U.S. presidency in multiple election cycles. He established the Schultz Family Foundation to support military veterans and combat youth unemployment.

Early Life

Howard D. Schultz was born on July 19, 1953, in New York City. He grew up in the Bayview Houses, a public housing project in the Canarsie neighborhood of Brooklyn. His father held a series of blue-collar jobs, including work as a truck driver, factory worker, and cab driver, and the family experienced financial hardship throughout Schultz's childhood. These formative experiences in a low-income household would later inform his approach to employee benefits and workplace culture at Starbucks.

Schultz was an athletic youth and earned a football scholarship that provided him the opportunity to attend college—the first member of his family to do so. His upbringing in public housing and his family's lack of a social safety net later became central themes in his public speeches and writings about the responsibilities of corporations toward their employees.

Education

Schultz attended Northern Michigan University in Marquette, Michigan, where he earned a Bachelor of Arts degree. His attendance was made possible by an athletic scholarship. Schultz graduated from Northern Michigan University and entered the workforce in sales and marketing roles.

Career

Early Career and Joining Starbucks

After graduating from Northern Michigan University, Schultz worked in sales and marketing positions. He joined Starbucks in 1982, when the company was a small Seattle-based retailer that sold whole-bean coffee and coffee-making equipment. At the time, Starbucks did not sell brewed coffee beverages by the cup. During a business trip to Italy, Schultz became impressed by the Italian espresso bar culture and the role that coffeehouses played as community gathering places. He became convinced that the espresso bar model could be successfully imported to the United States.

When Starbucks' original owners were reluctant to shift the company's focus toward selling brewed espresso drinks, Schultz left and founded his own coffeehouse, Il Giornale, in 1985. Il Giornale was a specialty coffee shop modeled on the Italian espresso bar experience. The venture proved successful, and in the late 1980s, Schultz orchestrated a merger between Il Giornale and Starbucks, effectively acquiring the Starbucks brand and its existing stores. Schultz assumed leadership of the combined company and began executing his vision for a national chain of coffeehouses.

First Tenure as CEO (1986–2000)

As chief executive officer and chairman of Starbucks beginning in 1986, Schultz oversaw a period of extraordinary growth. He guided the company through its initial public offering (IPO) in June 1992. At the time of the IPO, Starbucks had a market valuation of $271 million. Schultz used the capital raised from going public to fund an aggressive expansion strategy, doubling the company's store count in a series of moves that attracted significant media attention and were described as "coffee wars" with competing chains.

Under Schultz's first tenure, Starbucks grew from a handful of locations in the Pacific Northwest to a national and then international presence. The company's expansion influenced coffee culture in Seattle, across the United States, and in markets worldwide. Starbucks introduced millions of American consumers to espresso-based beverages such as lattes and cappuccinos, and the coffeehouse became a fixture of urban and suburban commercial districts. Through large-scale distribution deals, Starbucks became the largest coffeehouse chain in the world during this period.

Schultz also pursued employee benefit policies that were unusual in the food-service industry. The company offered stock options and health insurance to part-time employees, decisions Schultz attributed to his childhood experiences with his father's lack of workplace benefits. These policies generated both acclaim and scrutiny from industry observers.

Schultz stepped down as CEO in 2000 and was succeeded by Orin C. Smith. Schultz remained as chairman of the board following his departure from the CEO role.

Ownership of the Seattle SuperSonics (2001–2006)

In 2001, Schultz led a group of investors that purchased the Seattle SuperSonics of the National Basketball Association (NBA). His tenure as owner of the franchise was marked by controversy, particularly surrounding the team's future in Seattle. The SuperSonics struggled to secure public funding for a new arena, which Schultz and the ownership group argued was necessary for the franchise's long-term viability in the market.

In 2006, Schultz sold the SuperSonics to a group of investors led by Clay Bennett, who was based in Oklahoma City. The sale proved deeply unpopular in Seattle, as Bennett's group subsequently relocated the franchise to Oklahoma City, where it became the Oklahoma City Thunder in 2008. The loss of the SuperSonics was a source of significant public anger directed at Schultz. A Seattle Post-Intelligencer poll reflected negative public sentiment toward Schultz in the wake of the sale. Legal proceedings related to the sale and the team's relocation further drew public attention to Schultz's role in the transaction.

The outcome of the SuperSonics sale was a notable setback to Schultz's public reputation in the Seattle area, a city closely tied to his identity as the builder of the Starbucks brand. A Seattle Times report documented the controversy surrounding Schultz's decision to sell the team to out-of-state buyers. Meanwhile, the 2005 Super Bowl appearance of the Seattle Seahawks, owned by Paul Allen, drew favorable contrast in the local media to Schultz's stewardship of the SuperSonics.

Return as CEO (2008–2017)

By 2008, Starbucks was facing significant challenges. The company had expanded rapidly during the mid-2000s, and the onset of the 2008 financial crisis compounded problems of over-saturation, declining same-store sales, and a dilution of the brand's identity. Schultz returned as chief executive officer in January 2008, succeeding Jim Donald, who had followed Orin Smith in the CEO role.

Schultz's return was accompanied by sweeping changes. He led a restructuring that included the termination of numerous executives and employees and the closure of hundreds of underperforming stores across the United States. These measures were intended to stabilize the company's finances and refocus its operations on the core coffeehouse experience.

During his second tenure, Schultz orchestrated multiple acquisitions of American and Chinese beverage companies, broadening Starbucks' product portfolio and geographic reach. He introduced a national customer loyalty program that became a significant driver of repeat business and customer data collection. Schultz also enforced fair trade sourcing standards for the company's coffee supply chain, positioning Starbucks as a leader in ethical sourcing within the industry.

One of the most significant strategic initiatives of Schultz's second tenure was the aggressive expansion of Starbucks in China. Schultz oversaw the opening of thousands of stores in Chinese cities, a move that required adapting the Starbucks model to a country with a deeply rooted tea-drinking culture. The expansion in China has been credited with contributing to the growth of coffee consumption in the country and reconciling traditional tea culture with coffeehouse culture.

Schultz also engaged publicly on social and political issues during this period. In 2013, at a Starbucks shareholder meeting, Schultz responded to a shareholder who criticized the company's support for same-sex marriage by stating that the shareholder was free to sell their shares. The exchange was widely reported in the media.

Schultz stepped down as CEO in April 2017 and was succeeded by Kevin Johnson. Schultz continued serving as executive chairman until June 2018, when he was succeeded by Myron Ullman as chairman of the board.

Third Tenure as Interim CEO (2022–2023)

On March 16, 2022, Starbucks announced that CEO Kevin Johnson was retiring and that Schultz would return to the company as interim CEO. This marked Schultz's third stint leading the company. He served in the role until Laxman Narasimhan was installed as CEO. On March 20, 2023, Schultz announced that he would step down from the interim CEO position earlier than originally planned, and Narasimhan formally assumed the role in April 2023.

Post-CEO Activities

Following his departure from the interim CEO role and subsequent retirement from the Starbucks board of directors, Schultz has continued to comment publicly on business leadership and the future of Starbucks. In June 2025, Schultz made a surprise appearance at the Starbucks Leadership Experience in Las Vegas, where he appeared alongside CEO Brian Niccol. During the event, Schultz expressed support for Niccol's "Back to Starbucks" strategy, stating that he "did a cartwheel" upon hearing the approach. The two discussed the company's legacy and the concept of the coffeehouse as a "third place" between home and work.

In July 2025, Schultz joined Niccol during a Starbucks partner (employee) Quarterly Connect session, telling employees, "The world needs Starbucks," and expressing his belief in the company's future.

In October 2025, Schultz expressed concern about the rise of artificial intelligence, stating in an interview with LinkedIn's editor in chief Daniel Roth that he was "worried—with a big W—about AI." He also spoke publicly about the importance of leadership during periods of uncertainty.

Political Considerations

Schultz publicly considered candidacy for the U.S. presidency in the 2012, 2016, and 2020 election cycles. In each instance, he explored the possibility of running as an independent candidate. He declined to enter all three races. Prior to 2019, Schultz was affiliated with the Democratic Party; he registered as an independent in 2019. His stated political positions have been described as socially liberal and fiscally moderate. In foreign policy, he has been characterized as a "liberal hawk," favoring American-led international engagement.

Books

Schultz has authored four books on business and leadership. His writings have addressed his personal story of rising from public housing to corporate leadership, the culture and values of Starbucks, and his views on the responsibilities of business leaders in society.

Personal Life

Howard Schultz has two children. He resides in the Seattle area, where he has been based for most of his professional career. Details of his family life beyond these facts have remained largely private.

Schultz's political affiliations shifted from the Democratic Party to independent status in 2019, coinciding with his exploration of a potential presidential campaign. He has spoken publicly about the influence of his upbringing in Brooklyn's public housing projects on his worldview and his commitment to employee welfare and social responsibility initiatives.

Recognition

Schultz has received numerous honors and awards over the course of his career. He was the recipient of the NAACP Legal Defense and Educational Fund's National Equal Justice Award, which recognized his contributions to social justice causes.

Schultz has been invited to deliver commencement addresses at major universities. In 2017, he served as the commencement speaker at Arizona State University.

His leadership of Starbucks earned him comparisons to Ray Kroc, the businessman who built McDonald's into a global franchise empire. The description of Schultz as "the Ray Kroc of his generation" reflects the scale at which he expanded the Starbucks brand from a regional coffee retailer to a multinational corporation with tens of thousands of locations worldwide.

British politician Peter Mandelson referenced the Starbucks model and Schultz's influence on consumer culture in a 2009 discussion about the economy.

Philanthropy

Schultz established the Schultz Family Foundation, a philanthropic organization focused on two primary areas: supporting military veterans transitioning to civilian life and combating youth unemployment in the United States. In a 2015 opinion piece published in The New York Times, Schultz wrote about the importance of connecting young people with employment opportunities.

The foundation's work on veteran employment drew from Schultz's broader belief in corporate social responsibility. Starbucks under Schultz's leadership made public commitments to hiring veterans and military spouses. The Schultz Family Foundation has also partnered with community organizations to create pathways for young people who are disconnected from both education and employment.

Legacy

Howard Schultz's impact on American consumer culture and the global coffee industry is substantial and well-documented. Under his leadership, Starbucks grew from a small Seattle coffee retailer into the world's largest coffeehouse chain, with locations spanning dozens of countries. The company's expansion influenced not only the coffee industry but also broader trends in retail, urban design, and workplace culture. The concept of the coffeehouse as a "third place"—a social environment distinct from home and work—became closely associated with the Starbucks brand under Schultz's stewardship.

Schultz's employee benefit policies, including the extension of health insurance and stock options to part-time workers, set precedents in the food-service and retail industries. His approach to corporate responsibility—including fair trade sourcing, veteran hiring programs, and public engagement on social issues—placed Starbucks at the center of debates about the role of corporations in society.

His expansion of Starbucks into China represented one of the most significant examples of a Western consumer brand adapting to an Asian market with distinct cultural traditions. The growth of coffee consumption in China during and after Schultz's tenures has been partly attributed to Starbucks' market presence.

As of 2025, Schultz continues to engage publicly with issues of business leadership, corporate culture, and technology, including expressing concern about the societal implications of artificial intelligence. His legacy remains closely intertwined with the Starbucks brand, and his influence on the modern coffeehouse industry continues to be a subject of discussion among business analysts and commentators.

References

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