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

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 in public housing in Brooklyn, New York, Schultz joined Starbucks in 1982 when it was a small Seattle-based coffee bean retailer, and over subsequent decades transformed it into the largest coffeehouse chain in the world. His leadership of the company — which included taking it public in 1992, orchestrating its international expansion, and returning twice to steer it through periods of crisis — has led to comparisons with Ray Kroc, the businessman who built McDonald's into a global franchise. Beyond Starbucks, Schultz owned the Seattle SuperSonics basketball team from 2001 to 2006 and has publicly considered runs for the U.S. presidency as an independent candidate. He has written four books on business and leadership, and in 2025 continued to engage publicly with the company he built, appearing alongside current CEO Brian Niccol to discuss Starbucks' future direction. Through the Schultz Family Foundation, he has directed philanthropic efforts toward supporting military veterans and addressing youth unemployment.

Early Life

Howard Schultz was born on July 19, 1953, in New York City and 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, and the family experienced financial hardship during Schultz's childhood. The experience of growing up in public housing and witnessing his father's lack of access to health insurance and worker benefits would later inform Schultz's approach to employee relations at Starbucks, where he championed benefits for part-time workers.

Schultz attended Canarsie High School in Brooklyn, where he was an active athlete. His athletic abilities earned him a football scholarship to Northern Michigan University in Marquette, Michigan, making him the first member of his family to attend college.

Education

Schultz enrolled at Northern Michigan University on a football scholarship. He graduated with a Bachelor of Arts degree in communications. Schultz later returned to the university community in a prominent capacity; his alma mater has recognized his business achievements over the years. He also delivered the commencement address at Arizona State University in 2017.

Career

Early Career and Joining Starbucks

After graduating from Northern Michigan University, Schultz worked in sales for several companies, eventually joining Hammarplast, a Swedish housewares company, as a salesperson and later as a general manager. It was in this capacity that Schultz first encountered Starbucks. At the time, Starbucks was a small retailer in Seattle that sold whole coffee beans and coffee-making equipment, and Schultz noticed the company was ordering an unusually large number of drip coffee makers. Intrigued, he visited the company's original store in Pike Place Market in 1981.

Schultz joined Starbucks in 1982 as director of retail operations and marketing. During a trip to Milan, Italy, in 1983, Schultz was struck by the prevalence of Italian espresso bars and the role they played as community gathering places. He returned to Seattle with the idea of transforming Starbucks from a bean retailer into a coffeehouse serving espresso-based drinks, but the company's original owners were reluctant to adopt his vision.

Il Giornale and Acquisition of Starbucks

Unable to persuade Starbucks' founders to shift the business model, Schultz left the company in 1985 and opened his own coffeehouse chain called Il Giornale, named after the Italian newspaper. The Il Giornale stores served brewed espresso drinks in the Italian style and proved commercially successful. In 1987, when the original owners of Starbucks decided to sell the company, Schultz raised the necessary capital and acquired Starbucks, merging it with Il Giornale. He became chairman and CEO of the combined company and renamed all Il Giornale locations under the Starbucks brand.

Building Starbucks: 1987–2000

Under Schultz's leadership during his first tenure as CEO (1986–2000), Starbucks underwent a period of rapid expansion that transformed it from a regional Pacific Northwest coffee company into a national and eventually international brand. Schultz emphasized the concept of the coffeehouse as a "third place" — a social environment separate from home and the workplace — and built the company's identity around the in-store experience as much as the product itself.

A pivotal moment in Starbucks' growth came in 1992, when Schultz took the company public with an initial public offering (IPO). At the time of the offering, Starbucks had a valuation of $271 million. The capital raised through the IPO enabled Schultz to double the company's store count in a series of aggressive expansions that were characterized by media observers as "coffee wars" with competing chains. The rapid proliferation of Starbucks locations throughout the 1990s had a measurable impact on coffee culture in Seattle, across the United States, and internationally.

Schultz's approach to employee relations distinguished Starbucks from many other retail and food-service companies. Drawing on his childhood experience of watching his father work jobs that offered no benefits, Schultz implemented programs including health insurance for part-time employees working at least 20 hours per week and a stock option program called "Bean Stock" that extended equity ownership to hourly workers, whom the company referred to as "partners."

Due to the speed and scale of Starbucks' growth under his leadership, Schultz has been described as "the Ray Kroc of his generation," a reference to the businessman who built McDonald's into a global franchise system. Schultz stepped down as CEO in 2000 and was succeeded by Orin C. Smith, though he remained chairman of the board.

Ownership of the Seattle SuperSonics

In 2001, Schultz purchased the Seattle SuperSonics, a National Basketball Association franchise, and the Seattle Storm of the Women's National Basketball Association. His ownership of the team was marked by controversy, particularly surrounding the team's eventual departure from Seattle. In 2006, Schultz sold the SuperSonics to a group led by Clay Bennett of Oklahoma City. The sale ultimately resulted in the team's relocation from Seattle to Oklahoma City, where it was renamed the Oklahoma City Thunder in 2008.

The sale and relocation generated significant backlash in Seattle. A poll conducted by the Seattle Post-Intelligencer reflected widespread anger among fans and residents toward Schultz over the loss of the franchise. Schultz later expressed regret over the sale. Legal proceedings related to the team's departure included a trial that drew public attention. Coverage of Schultz during the 2006 Super Bowl XL, which was played in Seattle, noted the contrast between the football team's success and the uncertain future of the SuperSonics under Schultz's ownership.

Return to Starbucks: 2008–2017

By 2007 and into 2008, Starbucks was experiencing declining performance. The company had expanded aggressively under Schultz's successors, and many observers felt that the brand had lost its distinctiveness. The onset of the 2008 financial crisis further exacerbated the company's problems. In January 2008, Schultz returned as CEO, succeeding Jim Donald.

Schultz's second tenure as CEO was characterized by a sweeping restructuring of the company. He initiated mass layoffs of corporate employees, replaced senior executives, and closed hundreds of underperforming stores across the United States. Schultz also oversaw the introduction of a national customer loyalty program, which became one of the most successful programs of its kind in the retail industry and a significant driver of repeat business.

During this period, Schultz pursued an aggressive international expansion strategy, with a particular focus on China. His efforts in the Chinese market have been credited with introducing coffee consumption to a country with a centuries-old tea-drinking culture. Starbucks' expansion in China became one of the company's most significant growth stories, with thousands of stores opening in Chinese cities. Schultz also orchestrated multiple acquisitions of American and Chinese beverage companies during this period to diversify the Starbucks portfolio.

Additionally, Schultz enforced fair trade standards in Starbucks' coffee sourcing, a move that aligned the company with growing consumer interest in ethical supply chains. British politician Peter Mandelson referenced Starbucks' position during discussions about the global economy in 2009.

Schultz stepped down as CEO in April 2017, with Kevin Johnson succeeding him. He continued to serve 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 CEO Kevin Johnson was retiring and that Schultz would return as interim CEO, his third stint leading the company. He served in the role until Laxman Narasimhan took over as CEO. On March 20, 2023, Schultz announced that he would be stepping down from the position earlier than originally planned, and Narasimhan assumed the role in April 2023.

Post-CEO Activities

After departing the CEO role for the final time, Schultz continued to engage publicly with Starbucks and the broader business community. In June 2025, he made a surprise appearance at the Starbucks Leadership Experience in Las Vegas, appearing alongside CEO Brian Niccol. According to CNBC, Schultz said he "did a cartwheel" when Niccol coined the "Back to Starbucks" strategy, signaling his endorsement of the new CEO's direction for the company. During the company's partner Quarterly Connect in July 2025, Schultz told Starbucks partners (employees), "The world needs Starbucks," and expressed his belief in the company's future.

In October 2025, Schultz spoke publicly about emerging technology, stating that he was "Worried — with a big W" about the implications of artificial intelligence, expressing concerns about the technology's broader societal impact. Forbes profiled him in the same month, quoting his views on leadership during periods of uncertainty: "True leadership is defined in the toughest moments, not the smooth." Fast Company noted that even two years after departing the board of directors, Schultz's public commentary on the company and the retail industry continued to attract attention.

Political Activity

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

Schultz publicly considered running for president of the United States on three separate occasions — in 2012, 2016, and 2020 — each time as a potential independent candidate. He declined to enter all three contests. His most publicized exploration came ahead of the 2020 election, when his potential candidacy drew both attention and criticism, with some Democratic Party figures arguing that an independent bid could split the vote and aid Republican candidates.

In 2013, during a Starbucks annual shareholders meeting, Schultz responded to a shareholder who opposed the company's support for same-sex marriage by telling him, "You can sell your shares."

Philanthropy

Schultz established the Schultz Family Foundation, which focuses on two primary areas: supporting military veterans transitioning to civilian life and combating youth unemployment.

In 2015, Schultz authored an opinion piece in The New York Times addressing the need to connect young people with employment opportunities, a cause the foundation had taken up as a central initiative. The Chronicle of Philanthropy reported on the foundation's expanded programs aimed at addressing these issues.

Personal Life

Schultz has two children. He was previously affiliated with the Democratic Party before registering as an independent in 2019. He resides in the Seattle area. Schultz has authored four books on business and leadership.

Recognition

Schultz has received recognition from a number of organizations for his business leadership and social engagement. The NAACP Legal Defense and Educational Fund honored him at its 31st Annual National Equal Justice Awards ceremony.

Arizona State University selected Schultz as its 2017 commencement speaker, recognizing his contributions to business and education initiatives, including a partnership between Starbucks and ASU that provided online college degrees for Starbucks employees.

Forbes has recognized Schultz on its lists of notable American business figures. In October 2020, the publication ranked him as the 209th-richest person in the United States.

Legacy

Schultz's impact on the global coffee industry and on American retail culture has been substantial. His development of Starbucks from a small Seattle retailer into the world's largest coffeehouse chain altered the way coffee is consumed and marketed in the United States and internationally. The concept of the coffeehouse as a "third place" — a term Schultz championed — became central to the company's brand identity and influenced the broader hospitality and retail industries.

In June 2025, Schultz and CEO Brian Niccol publicly discussed the importance of preserving the "third place" concept, with Schultz reflecting on the company's legacy and the importance of "delivering performance through the lens of humanity."

His employee benefits programs, including health insurance for part-time workers and stock options for hourly employees, were adopted at a time when such practices were uncommon in the food-service and retail industries. These policies influenced other companies to reconsider their approach to employee compensation and benefits.

Schultz's three separate tenures as CEO of Starbucks — spanning from the company's early growth through its IPO, through a major financial crisis, and through a period of leadership transition — represent an unusual pattern in American corporate leadership. His willingness to return to the company during periods of difficulty, and the restructuring he carried out during his 2008 return, have been studied in business schools as examples of corporate turnaround strategy.

References

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