Howard Schultz

Howard Schultz
Schultz in 2019
Howard Schultz
Born	Howard D. Schultz 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 the then-small Seattle coffee roaster in 1982 and transformed it from a regional purveyor of whole-bean coffee into the largest coffeehouse chain in the world. He took the company public in 1992, oversaw an aggressive expansion strategy that reshaped coffee culture in the United States and abroad, and returned to lead the company through the 2008 financial crisis and again during a period of leadership transition in 2022. His approach to corporate management—which emphasized employee benefits, brand experience, and what Starbucks described as the concept of a "third place" between home and work—drew comparisons to Ray Kroc, the executive who built the McDonald's franchise empire. 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. In 2025, Schultz continued to engage publicly with Starbucks, appearing alongside CEO Brian Niccol to discuss the company's future direction.

Early Life

Howard D. Schultz was born on July 19, 1953, in New York City. He grew up in the Bayview Housing Projects in the Canarsie neighborhood of Brooklyn, a federally subsidized public housing complex. His father held a series of blue-collar jobs, including work as a truck driver and factory worker, and the family struggled financially throughout Schultz's childhood. The experience of growing up in public housing and witnessing his father's lack of access to health insurance and workers' benefits had a formative effect on Schultz, shaping views he would later carry into his corporate leadership at Starbucks.

Schultz was an athletic youth and earned a football scholarship to Northern Michigan University in Marquette, Michigan, becoming the first person in his family to attend college. At Northern Michigan, he studied communications and earned a Bachelor of Arts degree.

After graduating from college, Schultz entered the business world through sales positions. He eventually joined Hammarplast, a Swedish housewares company, where he worked as a general manager. It was in this role that Schultz first encountered Starbucks. He noticed that a small coffee roasting company in Seattle was ordering an unusually large number of a particular type of drip coffeemaker, which piqued his curiosity and led him to visit the company's original store in Pike Place Market in 1981. Impressed by the quality of the coffee and the founders' dedication to the product, Schultz lobbied to join the company and was hired in 1982 as director of retail operations and marketing.

Education

Schultz attended Northern Michigan University on a football scholarship. He graduated with a Bachelor of Arts degree in communications. Northern Michigan University, a public university in Marquette, Michigan, later recognized Schultz as one of its most prominent alumni. In 2017, Schultz served as the commencement speaker at Arizona State University, with which Starbucks had established a partnership to provide tuition coverage for employees pursuing online degrees.

Career

Early Years at Starbucks and Il Giornale

Schultz joined Starbucks in 1982 as director of retail operations and marketing. At the time, the company operated a small number of stores in Seattle that sold whole-bean coffee and coffee-making equipment but did not serve brewed coffee beverages. During a business trip to Milan, Italy, in 1983, Schultz was struck by the Italian espresso bar culture—the sense of community, the ritual of espresso preparation, and the role of the coffeehouse as a social gathering place. He returned to Seattle convinced that Starbucks should adopt a similar model, serving espresso-based beverages in addition to selling beans.

When the Starbucks founders proved reluctant to shift the company's business model, Schultz departed in 1985 to open his own coffeehouse chain, which he named Il Giornale, after the Italian newspaper. Il Giornale served brewed espresso drinks in an atmosphere inspired by the Italian coffee bars Schultz had visited. The concept proved successful, and in 1987, when the original Starbucks owners decided to sell the company, Schultz raised the capital necessary to purchase Starbucks and merged it with Il Giornale. He became chairman and CEO of the combined entity, rebranding all locations under the Starbucks name.

Building the Starbucks Brand (1987–2000)

Under Schultz's leadership, Starbucks underwent a period of rapid expansion throughout the late 1980s and 1990s. The company grew from a handful of Seattle locations to a national and then international chain. A pivotal moment came in June 1992 when Starbucks held its initial public offering (IPO), with the company valued at approximately $271 million. The capital raised through the IPO enabled Schultz to double the store count through an aggressive growth strategy that attracted significant media attention and was characterized as part of a series of "coffee wars" as the specialty coffee market expanded.

Schultz's management philosophy during this period centered on the idea that Starbucks stores should function as a "third place"—a comfortable environment between home and work where customers could linger, socialize, or work. He also implemented employee policies that were unusual in the retail and food-service industries at the time, including offering health insurance and stock options to part-time workers. Schultz frequently cited his father's experience as a blue-collar worker without benefits as motivation for these policies.

The growth under Schultz's leadership was extensive enough that he was described as the "Ray Kroc of his generation," a reference to the businessman who expanded the McDonald's franchise into a global brand. Schultz stepped down as CEO in 2000 and was succeeded by Orin C. Smith, though he retained the position of chairman.

Ownership of the Seattle SuperSonics (2001–2006)

In 2001, Schultz led an ownership group that purchased the Seattle SuperSonics, a National Basketball Association (NBA) franchise. His tenure as owner coincided with the team's participation in the 2006 Super Bowl celebration in Seattle—though the primary beneficiary of that event was widely seen as Paul Allen, owner of the Seattle Seahawks.

Schultz's ownership of the SuperSonics became controversial in Seattle. He sold the team in 2006 to a group led by Clay Bennett of Oklahoma City. The sale eventually led to the team's relocation from Seattle to Oklahoma City, where it was rebranded as the Oklahoma City Thunder in 2008. The loss of the SuperSonics was a source of significant frustration for Seattle sports fans, and Schultz faced public criticism and legal scrutiny related to the sale. A trial examined the circumstances of the transaction. Public opinion polling in Seattle reflected widespread displeasure with Schultz's handling of the franchise. In 2008, the Seattle Times published further reporting on Schultz's role in the team's departure.

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

By 2008, Starbucks was experiencing declining same-store sales, rising commodity costs, and a perception that the brand had lost its focus on coffee quality and the in-store experience during years of rapid expansion. The company's stock price had fallen significantly. Schultz returned as CEO in January 2008, succeeding Jim Donald, who had taken over after Orin Smith's retirement.

Schultz's second tenure as CEO was marked by aggressive restructuring. He led the closure of hundreds of underperforming stores across the United States and oversaw significant layoffs at both the store and corporate levels, including the dismissal of senior executives. The restructuring was described as a mass firing of executives and employees as Schultz sought to refocus the company on its core identity.

In addition to cost-cutting measures, Schultz pursued a strategy of acquisitions, purchasing several American and Chinese beverage companies to diversify Starbucks' product portfolio. He introduced the Starbucks Rewards loyalty program nationally, which became one of the most widely used restaurant loyalty programs in the country. The company also expanded its commitment to fair trade standards under Schultz's direction, enforcing ethical sourcing practices for its coffee supply chain.

A key strategic priority during Schultz's second stint was the expansion of Starbucks in China, which he identified as the company's most important growth market outside the United States. His aggressive push into Chinese markets was credited with reconciling the country's deeply rooted tea culture with coffee consumption, introducing millions of Chinese consumers to coffeehouse culture. By the time Schultz stepped down as CEO in April 2017, Starbucks operated thousands of stores in China, and the market remained central to the company's long-term growth strategy.

Schultz was succeeded as CEO by Kevin Johnson in April 2017. He continued as executive chairman until June 2018, when he was succeeded in that role 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 while the company searched for a permanent successor. The announcement came during a period of significant labor organizing activity at Starbucks locations across the United States. Schultz assumed the role and led the company through a transitional period until Laxman Narasimhan was named as the incoming CEO. On March 20, 2023, Schultz announced he would step down from the interim position ahead of the originally planned transition date, and Narasimhan formally took over the role in April 2023.

Post-Retirement Engagement

Following his departure from executive roles, Schultz continued to engage publicly with Starbucks and broader business issues. In June 2025, he made a surprise appearance at the Starbucks Leadership Experience event in Las Vegas, joining CEO Brian Niccol on stage. Schultz expressed enthusiasm for Niccol's "Back to Starbucks" strategy, telling attendees he "did a cartwheel" upon learning of the initiative, which emphasized a return to the company's core coffeehouse identity. Schultz and Niccol discussed the enduring importance of Starbucks as a "third place" and delivering performance "through the lens of humanity."

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

In October 2025, Schultz spoke publicly about his concerns regarding 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 discussed broader themes of leadership in uncertain times, drawing on his experience at Starbucks.

Political Interests

Throughout his career, Schultz was affiliated with the Democratic Party before registering as an independent in 2019. He publicly considered running for the U.S. presidency in the 2012, 2016, and 2020 election cycles, each time as a potential independent candidate. He ultimately declined to enter all three contests. 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 was outspoken on social and political issues during his time at Starbucks. In 2013, responding to a shareholder who criticized the company's support of same-sex marriage, Schultz stated that the shareholder was free to sell their shares, a remark that received significant media coverage.

Personal Life

Schultz has two children. He has been a resident of Seattle, Washington, for much of his adult life, having relocated there when he first joined Starbucks in 1982. His upbringing in the public housing projects of Brooklyn has been a recurring theme in his public remarks and writings, and he has frequently described the formative impact of his father's struggles as a blue-collar worker without health insurance or job security.

Schultz and his family established the Schultz Family Foundation, a philanthropic organization focused on two primary areas: supporting military veterans in their transition to civilian life and combating youth unemployment in the United States. In 2015, Schultz wrote an op-ed in The New York Times about the importance of connecting young people with employment opportunities. The foundation's work was also covered by the Chronicle of Philanthropy, which reported on Schultz's philanthropic initiatives.

Schultz has authored four books on business and leadership. His writings have covered topics including his personal story, the growth of Starbucks, corporate responsibility, and the challenges of leadership.

Recognition

Schultz has received recognition from multiple organizations for his business leadership and social engagement. The NAACP Legal Defense and Educational Fund honored him with the National Equal Justice Award at its 31st annual ceremony, recognizing his contributions to issues of social justice and equal opportunity.

His leadership of Starbucks has been the subject of extensive business journalism and academic study. The comparison to Ray Kroc—describing Schultz as the "Ray Kroc of his generation"—reflected the scale of the transformation he oversaw in turning a small Seattle company into a global enterprise. Schultz's approach to employee benefits, including offering health coverage and stock options to part-time workers, was widely covered in business media as an example of stakeholder capitalism before the term became common corporate parlance.

In 2025, Forbes profiled Schultz on the topic of leading through uncertainty, highlighting his experience navigating the 2008 financial crisis and the challenges of multiple tenures at Starbucks. Fast Company noted that even two years after retiring from the Starbucks board, Schultz's public statements continued to attract attention from business leaders and media.

Legacy

Schultz's influence on the coffee industry and on American retail culture is a subject of significant discussion in business literature. Under his leadership, Starbucks grew from a single-city operation selling whole-bean coffee to a global chain with tens of thousands of locations. The company's expansion redefined how coffee was marketed, consumed, and experienced in the United States and internationally, contributing to the popularization of espresso-based beverages and the specialty coffee movement.

The "third place" concept that Schultz championed—the idea that Starbucks stores should serve as communal gathering spaces distinct from home and the workplace—became a defining element of the company's brand identity. In 2025, Schultz continued to reference this concept, collaborating with current CEO Brian Niccol to articulate a vision of Starbucks reclaiming its role as a "third place" and delivering performance "through the lens of humanity."

Schultz's employee-benefit policies at Starbucks, including health insurance for part-time workers and the stock-option program known as "Bean Stock," were frequently cited as models for how large employers in the retail and food-service sectors could provide benefits traditionally associated with white-collar employment. His personal narrative—rising from a childhood in Brooklyn public housing to lead a Fortune 500 company—became a widely referenced example of the American self-made business story.

His legacy, however, is not without controversy. The sale of the Seattle SuperSonics, which resulted in the team's relocation to Oklahoma City, remains a point of contention in Seattle. Additionally, his multiple explorations of presidential bids without entering the race drew criticism from various political commentators.

Schultz's influence on Starbucks remained visible well after his formal departure from the company. His 2025 appearances alongside CEO Brian Niccol underscored his ongoing connection to the brand he built, with Schultz telling employees at a company event that "the world needs Starbucks."