In 1987, Howard Schultz took a bold gamble. He bought a small Seattle-based coffee chain called Starbucks — which at the time had just 11 stores. But his vision was far greater than selling coffee — he wanted to create a “third place” between home and work where people could connect over a cup of rich, aromatic brew.
Today, Starbucks operates in over 85 countries , serves millions of customers daily , and has become one of the most recognizable brands in the world.
This is the inspiring story of how Howard Schultz turned a local coffee shop into a global phenomenon — not just by selling coffee, but by selling an experience.
Early Life & Background
A Passion for People and Community
Born in 1953 in Brooklyn, New York, Howard Schultz grew up in a working-class family. His early life was shaped by economic struggles and a deep appreciation for hard work.
He studied communications at Northern Michigan University and later earned a master’s degree from Schulich School of Business in Toronto.
Before joining Starbucks, Schultz worked in sales for Hammarplast , a Swedish housewares company. It was during this time that he first visited Seattle and became intrigued by a small coffee retailer called Starbucks.
Joining Starbucks
From Salesman to Visionary Leader
Schultz joined Starbucks in 1982 as Director of Retail Operations and Marketing. At the time, Starbucks only sold whole bean coffee , not brewed drinks.
His big idea came after a trip to Italy , where he saw how coffee bars were more than just places to drink espresso — they were social hubs filled with conversation, culture, and connection.
When the founders of Starbucks refused to expand into brewed beverages, Schultz left to start his own café — Il Giornale . In 1987, he acquired Starbucks and merged it with Il Giornale — giving birth to the modern Starbucks Corporation.
Building the Starbucks Experience
Coffee Is Just the Beginning
Under Schultz’s leadership, Starbucks evolved from a regional brand into a global lifestyle icon.
Key strategies that fueled growth:
- Introduced the concept of the “Third Place”
- Focused on customer experience , not just product
- Emphasized barista training , store design, and music playlists
- Expanded globally while adapting to local cultures
- Invested heavily in employee benefits (healthcare, stock options)
He also introduced innovations like:
- Frappuccino
- Starbucks Reserve Roasteries
- Mobile ordering app
- Ethically sourced coffee beans
By the time he stepped down as CEO, Starbucks had grown to over 30,000 stores worldwide .
Social Responsibility & Leadership
Doing Well by Doing Good
Schultz believed that business success should be tied to social impact.
Some of Starbucks’ key initiatives under his leadership:
- College Achievement Plan – Offering tuition assistance for employees
- Race Together Initiative – Encouraging conversations on race relations
- Ethical sourcing – Supporting fair wages and sustainable farming
- Hiring veterans and refugees – Promoting inclusion and opportunity
Though not without controversy, these efforts helped shape Starbucks’ identity as a values-driven company.
Business Lessons from Howard Schultz
- Create an Experience
Starbucks didn’t just sell coffee — it created a space where people felt welcome. - Lead with Purpose
Schultz believed that companies have a responsibility to their employees and communities. - Think Global, Act Local
Starbucks adapted its menu and store designs to fit cultural preferences around the world. - Invest in Your Team
He treated employees as partners — offering benefits long before it was common. - Stay True to Your Values
Even when it wasn’t easy, Schultz prioritized ethics and integrity over short-term gains.
Motivational Takeaways
Howard Schultz’s journey offers powerful lessons for entrepreneurs, professionals, and dreamers alike:
| LESSON | EXPLANATION |
| Start with a Vision | Great businesses begin with a clear purpose. |
| Be Willing to Take Risks | Buying Starbucks was a huge gamble — but it paid off. |
| Believe in Your Idea | Even when others doubt you, stay committed to your mission. |
| Build a Culture | Brands thrive when they stand for something bigger than profit. |
| Never Stop Learning | Schultz kept evolving — and so should you. |
Conclusion – From Beans to Billion-Dollar Brand
Howard Schultz’s rise from a Brooklyn kid to the man who built Starbucks into a global giant proves that vision, persistence, and passion can create something truly extraordinary.
His story teaches us that great brands are built on values, experiences, and human connections — not just products.
So whether you’re building a startup or chasing a dream, remember Schultz’s philosophy:
People want to be part of something bigger than themselves.
Stay inspired. Stay connected. And never stop brewing great ideas.