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. Under his leadership, Starbucks grew from a small Seattle-based coffee roaster into the largest coffeehouse chain in the world, a transformation that reshaped coffee culture 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 aggressive expansion, public offerings, and international growth strategies. Beyond Starbucks, Schultz owned the Seattle SuperSonics basketball team from 2001 to 2006 and has publicly explored the possibility of running for the U.S. presidency as an independent candidate. He is the author of four books on business and leadership, and through the Schultz Family Foundation, he has directed philanthropic efforts toward supporting military veterans and addressing youth unemployment. In 2025, Schultz remained active as a public commentator on business leadership and corporate strategy, making appearances at Starbucks events alongside current CEO Brian Niccol.

Early Life

Howard Schultz was born on July 19, 1953, in New York City. He grew up in the Bayview Houses, a federally subsidized housing project in the Canarsie neighborhood of Brooklyn. Schultz's father held a series of blue-collar jobs, including work as a truck driver and factory worker. The family's financial struggles during Schultz's childhood left a lasting impression on him. In interviews, Schultz has frequently cited his upbringing in public housing as a formative influence on his later approach to employee benefits and corporate social responsibility at Starbucks.

Schultz was the first member of his family to attend college. He attended Northern Michigan University in Marquette, Michigan, where he earned a Bachelor of Arts degree. His attendance at Northern Michigan was facilitated in part by an athletic scholarship. After graduating, Schultz entered the business world, eventually working in sales for the Hammarplast housewares company, a subsidiary of the Swedish firm Perstorp. It was through this position that Schultz first encountered Starbucks, after noticing that a small coffee company in Seattle was placing unusually large orders for a particular type of drip coffee maker. Intrigued, Schultz traveled to Seattle to visit the original Starbucks store, an experience that would set the course of his career.

Education

Schultz earned a Bachelor of Arts degree from Northern Michigan University, a public university located in Marquette, Michigan. He was the first person in his family to graduate from college. In later years, Schultz became an advocate for access to higher education, including through partnerships between Starbucks and Arizona State University that offered tuition reimbursement to eligible employees.

Career

Early Career and Joining Starbucks

Schultz began working at Starbucks in 1982, joining the company as director of retail operations and marketing. At the time, Starbucks was a small Seattle-based retailer that sold whole coffee beans and coffee-making equipment but did not serve brewed coffee beverages. During a business trip to Milan, Italy, Schultz observed the Italian espresso bar culture and became convinced that a similar model could succeed in the United States. He proposed that Starbucks begin serving espresso-based beverages in its stores, but the company's founders were reluctant to shift away from the existing retail model.

Schultz subsequently left Starbucks and in 1985 founded Il Giornale, a specialty coffeeshop that served brewed espresso drinks in the Italian style. The venture proved successful, and in 1987, with the backing of local investors, Schultz acquired the Starbucks brand and its six existing stores, merging them with Il Giornale. The combined company retained the Starbucks name, and Schultz became its chief executive officer.

First Tenure as CEO (1986–2000)

Under Schultz's leadership during his first tenure as CEO, Starbucks underwent a dramatic expansion. The company grew from a handful of stores in the Pacific Northwest into a national and eventually international chain. A central element of Schultz's strategy was the concept of Starbucks as a "third place" — a comfortable environment between home and work where customers could gather and socialize over coffee.

In 1992, Schultz took Starbucks public with an initial public offering that valued the company at $271 million. The capital raised through the IPO enabled the company to double its store count in a period characterized by intense competition in the specialty coffee market, which observers described as the "coffee wars." Starbucks' expansion during this era was rapid and sustained, as the company opened stores across the United States and began its first forays into international markets.

Schultz also distinguished himself through employee-focused policies that were unusual in the retail and food-service industries. Starbucks offered stock options — branded as "Bean Stock" — and health-care benefits to both full-time and part-time employees, whom the company referred to as "partners." These policies drew attention from business commentators and were seen as reflecting Schultz's personal experiences growing up in a family without access to adequate health insurance.

Following the large-scale expansion of the Starbucks brand during the 1990s, the company established itself as the largest coffeehouse chain in the world. Schultz's role in orchestrating this growth led to comparisons with Ray Kroc, the businessman who built McDonald's into a global franchise, with Schultz described as "the Ray Kroc of his generation."

Schultz stepped down as CEO of Starbucks in 2000 and was succeeded by Orin C. Smith. Schultz remained chairman of the board during this period.

Ownership of the Seattle SuperSonics (2001–2006)

In 2001, Schultz purchased the Seattle SuperSonics, a National Basketball Association franchise based in Seattle. His ownership tenure was marked by controversy, particularly regarding disputes over public funding for a new arena. Schultz's stewardship of the team was a subject of considerable debate in Seattle. In 2006, he sold the SuperSonics to a group led by Oklahoma City businessman Clay Bennett. The team subsequently relocated to Oklahoma City and was renamed the Oklahoma City Thunder, a move that generated significant criticism of Schultz among Seattle sports fans. A lawsuit related to the sale was eventually settled, but the departure of the SuperSonics from Seattle remained a point of contention for years.

Return as CEO (2008–2017)

By 2008, Starbucks was facing significant challenges. The company had overexpanded, same-store sales were declining, and the 2008 financial crisis was putting pressure on consumer spending. Schultz returned as CEO in January 2008, succeeding Jim Donald.

Upon his return, Schultz implemented a wide-ranging restructuring program. He ordered the closure of hundreds of underperforming stores across the United States, laid off thousands of employees, and replaced much of the company's executive leadership. The restructuring was designed to refocus the company on the quality of its core coffee offerings and the in-store customer experience. In one notable move, Schultz ordered all U.S. Starbucks stores to close simultaneously for an afternoon of barista retraining, a decision that attracted widespread media coverage.

During his second tenure, Schultz also oversaw significant strategic initiatives. He orchestrated multiple acquisitions of American and Chinese beverage companies, expanding Starbucks' product portfolio. He introduced the Starbucks Rewards loyalty program on a national scale, which became one of the most successful customer loyalty programs in the retail industry. Schultz also enforced fair trade sourcing standards for Starbucks coffee, aligning the company with ethical supply chain practices.

A major focus of Schultz's second tenure was the aggressive expansion of Starbucks in China, which he identified as the company's most important growth market outside the United States. His strategy of adapting the Starbucks model to Chinese consumer preferences — including incorporating tea-based beverages and designing stores that emphasized local aesthetics — has been credited with helping to reconcile China's traditional tea culture with growing coffee consumption.

Schultz stepped down as CEO of Starbucks in April 2017 and was succeeded by Kevin Johnson. Schultz remained as executive chairman until June 2018, when he was succeeded in that role by Myron Ullman.

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 while the board conducted a search for a permanent successor. Schultz served in this capacity until Laxman Narasimhan assumed the CEO role in April 2023. On March 20, 2023, Schultz announced that he would step down early from the interim position. His third stint at the helm of Starbucks was marked by labor relations challenges, as a growing number of Starbucks stores voted to unionize during this period.

Post-Starbucks Activities

Following his departure from Starbucks, Schultz continued to engage publicly on matters of business leadership and corporate culture. In June 2025, he made a surprise appearance at the Starbucks Leadership Experience in Las Vegas, where he appeared alongside CEO Brian Niccol. Schultz expressed support for Niccol's "Back to Starbucks" strategy, stating that he "did a cartwheel" upon hearing about the initiative. In a joint conversation with Niccol, Schultz reflected on the importance of Starbucks as a "third place" and spoke about delivering performance "through the lens of humanity." In July 2025, Schultz told Starbucks partners during a Quarterly Connect event that "the world needs Starbucks" and expressed his belief in the company's future.

In October 2025, Schultz publicly expressed concern about the impact of artificial intelligence, stating that he was "Worried — with a big W — about AI" during an interview with LinkedIn's editor in chief. He also discussed themes of leadership during uncertainty in media appearances, drawing on his experience navigating Starbucks through past crises.

Political Activities

Schultz has been politically active outside of his business career. He was registered as a Democrat before 2019, when he changed his affiliation to independent. His political positions have been characterized as socially liberal and fiscally moderate.

Schultz publicly considered running for President of the United States in 2012, 2016, and 2020, each time as an independent candidate. He ultimately declined to enter all three contests. His exploration of a 2020 presidential bid, announced in early 2019, drew particular attention and criticism from members of the Democratic Party who argued that an independent candidacy could split the vote and benefit the Republican nominee.

In 2013, Schultz responded publicly to a Starbucks shareholder who criticized the company's support for same-sex marriage, telling the shareholder that they could "sell your shares" if they disagreed with the company's position.

In foreign policy, Schultz has been described as a "liberal hawk," favoring American-led international engagement.

Personal Life

Howard Schultz has two children. He has kept many details of his family life private. Schultz has spoken publicly about the influence of his childhood in the Bayview Houses, a public housing project in Brooklyn, New York, on his values and leadership philosophy. He has described his father's lack of access to health insurance and worker benefits as motivating his decision to offer comprehensive benefits to Starbucks employees.

Schultz is the author of four books on business and leadership. His published works have addressed topics including entrepreneurship, corporate responsibility, and the story of Starbucks' growth.

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 2015, Schultz wrote an opinion piece for The New York Times about the importance of connecting young people with employment opportunities. The foundation's activities have also been covered by The Chronicle of Philanthropy.

Recognition

Schultz has received a number of honors and awards throughout his career. He received the National Equal Justice Award from the NAACP Legal Defense and Educational Fund at the organization's 31st annual ceremony, in recognition of his efforts related to social justice and corporate responsibility.

Schultz was selected as the commencement speaker at Arizona State University in 2017, reflecting his public profile as a business leader and advocate for access to education.

Forbes has profiled Schultz extensively over the years. As of October 2020, Forbes listed Schultz as the 209th-richest person in the United States. In 2025, Forbes continued to feature Schultz in articles about business leadership, describing his approach to navigating corporate uncertainty.

Schultz's impact on the coffee industry and corporate America has been the subject of analysis in outlets including The Guardian, Fast Company, Business Insider, and CNBC. His return to Starbucks during periods of crisis — particularly the 2008 financial downturn and the 2022 leadership transition — has been studied as a case in corporate turnaround management.

Legacy

Howard Schultz's career at Starbucks fundamentally altered the specialty coffee industry in the United States and internationally. By adapting the Italian espresso bar model for American consumers and scaling it through aggressive expansion, Schultz transformed Starbucks from a regional coffee bean retailer into a global brand with tens of thousands of locations. The concept of the coffeehouse as a "third place" — a term Schultz frequently invoked — became central to the company's identity and influenced broader trends in retail and hospitality.

Schultz's employee benefit policies — including the extension of health insurance and stock options to part-time workers — set a precedent that was unusual in the food-service industry at the time. These policies became a frequently cited example in discussions of corporate social responsibility and stakeholder capitalism.

His expansion of Starbucks into China, and the strategy of adapting the brand to local cultural norms including tea traditions, is considered a significant case study in international business. The comparison to Ray Kroc, the architect of the McDonald's franchise system, reflects the scale and cultural impact of Schultz's work at Starbucks.

As of 2025, Schultz continued to engage with the Starbucks community and broader business audiences, emphasizing themes of humanity-centered leadership and the enduring importance of physical retail spaces in an increasingly digital economy.

References

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