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 and author 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 rose to become one of the most prominent figures in the American coffee industry and in global retail. He joined Starbucks in 1982 when it was a small chain of coffee bean retailers in Seattle, and after a brief departure to found his own coffeehouse, Il Giornale, he returned to acquire and transform Starbucks into the largest coffeehouse chain in the world. Under his leadership, Starbucks went from a regional curiosity to a global brand with tens of thousands of locations, fundamentally reshaping coffee culture in the United States and abroad. Schultz took the company public in 1992 and oversaw decades of expansion, including aggressive growth in Chinese markets that introduced coffee consumption to a country rooted in tea culture. He has been described as the "Ray Kroc of his generation" for his role in scaling Starbucks through franchising and corporate strategy. Beyond Starbucks, Schultz owned the Seattle SuperSonics basketball team from 2001 to 2006, has authored four books on business, and publicly explored presidential candidacies in 2012, 2016, and 2020 as a political independent. 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 struggled financially throughout Schultz's childhood. These early experiences with economic hardship would later inform Schultz's approach to employee benefits and corporate social responsibility at Starbucks.

Schultz attended Canarsie High School in Brooklyn, where he was an athletic student. He earned a football scholarship to Northern Michigan University in Marquette, Michigan, becoming the first person in his family to attend college. At Northern Michigan, Schultz studied communications and graduated with a Bachelor of Arts degree.

After graduating from college, Schultz entered the workforce in sales and marketing roles. He eventually took a position with Hammarplast, a Swedish housewares company, where he worked as a general manager. It was through his work at Hammarplast that Schultz first encountered Starbucks. He noticed that a small coffee bean retailer in Seattle was placing unusually large orders for a particular type of drip coffeemaker, which piqued his curiosity and prompted him to visit the company's Pike Place Market store. That visit in 1981 proved to be a turning point: Schultz was struck by the quality of the coffee and the passion of the company's founders — Jerry Baldwin, Zev Siegl, and Gordon Bowker — for sourcing and roasting premium coffee beans.

Education

Schultz attended Northern Michigan University in Marquette, Michigan, on a football scholarship. He earned a Bachelor of Arts degree in communications from the university. Schultz was the first member of his family to attend and graduate from a four-year college. In 2017, Arizona State University invited Schultz to serve as commencement speaker, reflecting his status in American business and higher education circles.

Career

Early Years at Starbucks and the Founding of Il Giornale

Schultz joined Starbucks in 1982 as director of retail operations and marketing. At the time, Starbucks operated as a retailer of whole coffee beans and equipment, not as a coffeehouse serving brewed beverages. During a business trip to Milan, Italy, Schultz visited numerous Italian espresso bars and was inspired by the communal, café-centered culture surrounding coffee in Italy. He became convinced that Starbucks could replicate this experience in the United States by serving espresso-based drinks in a welcoming, social atmosphere — what he would later describe as a "third place" between home and work.

Schultz's vision for transforming Starbucks into a coffeehouse met resistance from the company's original founders, who preferred to remain focused on selling coffee beans. In 1985, Schultz left Starbucks and founded Il Giornale, an Italian-style coffeehouse in Seattle that served brewed espresso beverages. Il Giornale proved successful and attracted investors. In 1987, when the original Starbucks owners decided to sell the company, Schultz raised approximately $3.8 million and acquired Starbucks, merging it with Il Giornale. He became the chief executive officer of the combined company, retaining the Starbucks name and logo.

First Tenure as CEO (1986–2000)

Under Schultz's leadership during his first tenure as CEO, Starbucks underwent a dramatic transformation from a small Seattle-based chain into a national and eventually international brand. Schultz pursued an aggressive expansion strategy, opening new stores at a rapid pace across the United States. A central element of his approach was the concept of the Starbucks store as a "third place" — a comfortable social environment distinct from home and office — which became a defining feature of the brand's identity.

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 Schultz to accelerate the company's expansion, doubling the number of Starbucks stores in what the media described as a series of "coffee wars" with competitors. By the late 1990s, Starbucks had established a presence in major markets across the United States and had begun expanding internationally.

Schultz also distinguished himself through his employee-relations policies. He introduced health insurance benefits for part-time employees and implemented a stock-option plan called "Bean Stock" that extended equity ownership to all employees, whom Starbucks referred to as "partners." These policies were unusual in the retail and food-service industries at the time and contributed to Starbucks' reputation as a relatively progressive employer.

In 2000, Schultz stepped down as CEO, handing the position to Orin C. Smith, while retaining the role of chairman of the board. Due to the scale and speed of Starbucks' growth under his leadership, Schultz was frequently compared to Ray Kroc, the businessman who transformed McDonald's into a global franchise, and was described as the "Ray Kroc of his generation."

Ownership of the Seattle SuperSonics (2001–2006)

In 2001, Schultz purchased the Seattle SuperSonics of the National Basketball Association (NBA). His ownership of the team was marked by controversy, particularly regarding the issue of a new arena. Schultz sought public funding for a new arena to replace the aging KeyArena, but the effort failed to gain sufficient political and public support in Seattle.

In 2006, Schultz sold the SuperSonics to a group led by Oklahoma City businessman Clay Bennett. The sale proved deeply unpopular in Seattle, as Bennett subsequently relocated the franchise to Oklahoma City, where it became the Oklahoma City Thunder. A lawsuit followed, and a trial examined the circumstances of the sale. Public opinion polls conducted by the Seattle Post-Intelligencer indicated significant negative sentiment toward Schultz in Seattle over the loss of the team. The Seattle Times reported extensively on the fallout from the sale and Schultz's role in the franchise's departure from the city.

Return as CEO and the Financial Crisis (2008–2017)

By 2007, Starbucks was experiencing significant challenges. Rapid over-expansion had diluted the brand, same-store sales were declining, and the company's stock price had fallen sharply. The onset of the 2008 financial crisis compounded these problems. In January 2008, Schultz returned as CEO, succeeding Jim Donald, who had taken over from Orin Smith.

Schultz's return was accompanied by sweeping changes. He led a significant restructuring that included the firing of senior executives and the elimination of thousands of positions across the company. He ordered the closure of hundreds of underperforming stores in the United States. In a widely publicized move, Schultz temporarily shut down all U.S. Starbucks locations for an afternoon of retraining baristas in espresso preparation, a symbolic gesture aimed at refocusing the company on the quality of its core product.

During his second tenure, Schultz orchestrated multiple acquisitions to diversify the Starbucks portfolio, including purchases of American and Chinese beverage companies. He introduced and expanded Starbucks' national loyalty program, which used digital technology and mobile payments to deepen customer engagement. He also enforced fair trade standards in the company's coffee sourcing, building on Starbucks' earlier commitments to ethical sourcing practices.

A major strategic focus of Schultz's second tenure was the expansion of Starbucks into China. Schultz invested heavily in opening stores across Chinese cities, and his aggressive expansion in Chinese markets has been credited with helping to introduce coffee consumption to a country with a deeply established tea-drinking culture. Peter Mandelson, then the UK's Secretary of State for Business, referenced Schultz and Starbucks in the context of global economic trends during the financial crisis.

Schultz stepped down as CEO in April 2017, handing the role to Kevin Johnson, a former technology executive who had served as Starbucks' president and chief operating officer. Schultz continued as executive chairman until June 2018, when he was succeeded by Myron Ullman.

Third Tenure as Interim CEO (2022–2023)

On March 16, 2022, Starbucks announced that Kevin Johnson was retiring and that Schultz would return as interim CEO until a permanent successor was identified. During this third tenure, Schultz navigated the company through a period marked by unionization efforts at numerous Starbucks locations across the United States, as well as ongoing challenges related to labor relations and operational efficiency. Schultz served as interim CEO until Laxman Narasimhan assumed the permanent CEO role. On March 20, 2023, Schultz announced he would step down from the interim position ahead of schedule.

Post-CEO Involvement

Following his departure from formal leadership, Schultz has continued to engage publicly with Starbucks' direction and broader business issues. In June 2025, Schultz made a surprise appearance at Starbucks' Leadership Experience event in Las Vegas, joining CEO Brian Niccol. Schultz expressed strong support for Niccol's "back to Starbucks" strategy, which emphasized a return to the company's coffeehouse roots and the "third place" concept that had defined Schultz's own leadership philosophy. In a joint discussion, Schultz and Niccol reflected on the company's legacy and the importance of delivering performance "through the lens of humanity."

In July 2025, Schultz addressed Starbucks partners (employees) during a Quarterly Connect event, stating, "The world needs Starbucks," and expressing confidence in the company's future.

In October 2025, Schultz spoke publicly about the risks of artificial intelligence, stating he was "Worried — with a big W" about AI and its implications for business and society. In a separate interview, he discussed the topic of leading through uncertainty, emphasizing that "true leadership is defined in the toughest moments."

Political Activities

Schultz has been politically active outside of his business career. He was a registered Democrat for most of his adult life before changing his affiliation to independent in 2019.

Schultz publicly considered running for President of the United States in three separate election cycles: 2012, 2016, and 2020. In each case, he explored the possibility of an independent candidacy but ultimately declined to enter the race. His 2020 exploration attracted significant media attention and criticism from Democratic politicians and strategists who feared that an independent candidacy could split the anti-Republican vote and aid the re-election of President Donald Trump.

Schultz's political positions have been characterized as socially liberal and fiscally moderate. In foreign policy, he has been described as a "liberal hawk," favoring American leadership in international affairs. In 2013, during a Starbucks shareholders' meeting, Schultz responded to a shareholder who objected to the company's support for same-sex marriage by telling the shareholder, "You can sell your shares."

Personal Life

Schultz has two children. He established the Schultz Family Foundation, a philanthropic organization focused on two primary areas: supporting military veterans and their families, and combating youth unemployment in the United States. In 2015, Schultz wrote an op-ed in The New York Times discussing the challenge of connecting young people with employment opportunities. The Chronicle of Philanthropy also reported on Schultz's philanthropic activities through the foundation.

Schultz has authored four books on business and leadership. He has spoken publicly about how his upbringing in public housing in Brooklyn shaped his worldview and his approach to running Starbucks, particularly his emphasis on providing employee benefits such as health insurance and stock options to part-time workers.

Recognition

Schultz has received recognition from multiple organizations for his business leadership and philanthropic efforts. The NAACP Legal Defense and Educational Fund honored him with its National Equal Justice Award at the organization's 31st Annual National Equal Justice Awards ceremony.

He has been featured on the Forbes list of the wealthiest Americans, ranked as the 209th-richest person in the United States in October 2020. Arizona State University selected Schultz as its commencement speaker in 2017, reflecting his profile in American business and public life.

Media outlets have frequently profiled Schultz as a transformative figure in the American retail and food-service industries. His role in building Starbucks from a small chain of coffee bean retailers into the world's largest coffeehouse company has drawn comparisons to Ray Kroc's expansion of McDonald's. Fast Company noted in 2025 that even two years after retiring from the Starbucks board, Schultz's commentary on business and leadership continued to attract attention across the industry.

Legacy

Schultz's impact on the American coffee industry and on retail culture is substantial. Before Starbucks' expansion under his leadership, specialty coffee was a niche market in the United States. Schultz's vision of the coffeehouse as a "third place" — a communal gathering space between home and work — redefined how Americans consumed coffee and how they thought about the coffeehouse experience. The model he built at Starbucks influenced countless competitors and imitators, and the company's global reach brought espresso-based beverages into the mainstream of American daily life.

His employee-relations policies, including health insurance for part-time workers and the Bean Stock equity program, set benchmarks in the retail and food-service industries and were frequently cited in discussions of corporate social responsibility. His commitment to fair trade sourcing standards during his second CEO tenure contributed to broader industry trends toward ethical supply-chain practices.

Schultz's aggressive expansion of Starbucks into China represented a significant strategic accomplishment, introducing coffee culture to one of the world's largest consumer markets. The company's Chinese operations grew to represent a major portion of Starbucks' international business.

His political explorations, while ultimately resulting in no candidacy, reflected broader debates in American politics about the role of independent candidates and business leaders in governance. Schultz's philanthropic work through the Schultz Family Foundation has focused on two areas — veterans' support and youth employment — that address significant social challenges in the United States.

As of 2025, Schultz continued to engage publicly with questions of business leadership and corporate responsibility, participating in Starbucks company events and speaking on topics ranging from artificial intelligence to the fundamentals of customer-focused management.

References

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