Howard Schultz success story is a testament to the transformation of a regional coffee brand into a global powerhouse. The brand in question, of course, is Starbucks. In 1987, Starbucks had a modest 20-odd stores, but under Schultz’s leadership, it has grown into a global coffee brand with over 38,000 stores. Over the period of four decades, Howard’s transformative vision and dedication established Starbucks from a mere regional brand to a well-recognised and respected brand in the world.
His philosophies and innovative methodologies have not only helped him in his business venture but are also inspiring startup founders and management executives worldwide. Let’s now delve into the success story of Howard Schultz and more about him.
Table of Contents
A Rocky Start
Well, there is a common consensus that to be a successful entrepreneur, you need to belong to an aristocratic family, but Howard Schultz success story breaks all such stereotypes. Howard Schultz doesn’t belong to any of the royal Blue Blood families; he had quite a humble beginning. He was born in Brooklyn, New York, and grew up in federally subsidised housing in hardscrabble Canarsie. Schultz’s father, Fred, didn’t even complete high school and used to perform all kinds of blue-collar jobs. From driving buses to working in a factory, he could barely meet his needs with the money he was earning. However, he got Howard through school and later on, Howard became the first graduate in his family. He graduated with a degree in communications from Northern Michigan University.
Rise Of Starbucks As A Global Brand
After graduating, he started working in Xerox’s sales and marketing division. After working for three years at Xerox, he became vice president and general manager of Hammarplast U.S.A. It was in 1981 when Howards first tasted the “Sumatra” in Seattle, and thereafter, he was invited into conversation with connoisseurs. In 1982, he joined Starbucks as the director of operations and marketing.
Howard Schultz had a clear vision of reaching business excellence without losing his compassion for his company’s employees. In 1983, Howard Schultz success story took a pivotal turn after his trip to Italy, where he was inspired by the Italian coffee bars and planned to bring the same romance of the coffee experience to America. In 1987, Howard bought Starbucks with the help of local investors and became the CEO of the company.
After becoming the company’s CEO, he ensured that a culture of compassion was fostered in the organisation. He formulated two key plans that became the company’s primary belief.
- Starbucks offered comprehensive health coverage for eligible full- and part-time workers, among the first in the retail industry.
- Starbucks provided its partners (employees) with company equity through a stock program known as Bean Stock.
Journey To Global Expansion
After growing the company stores to more than 3,000 and setting up its first stores in Japan, China, and Europe, Howard Schultz success story took another pivot. In 2000, he stepped down from his position as CEO for global expansion and became the global chief strategist and chairman. In the coming decade, Starbucks grew exponentially from 3,000 stores to 15,000 and eventually to 30,000 stores globally! However, he again became the company’s CEO in 2008 and led the company towards more sustainable growth, focusing on innovation, Starbucks Coffee Heritage, and customer experience.
Retirement From Starbucks
In 2018, Howard Schultz retired from the company but however, later rejoined the company as interim CEO and a member of the board of directors in 2022. Later, in 2023, Howard took on the role of chairman emeritus and stepped down from the Board of Directors.
Other Contributions & Achievements
Howard Schultz success story is not just limited to Starbucks; he has made various other contributions for the greater good of society. Let’s look at them one by one
Books Published
Howard Schultz is also a best-selling author. He has written many books, sharing insights from his personal life and imparting his business wisdom to founders and CXOs.
- “For Love of Country: What Our Veterans Can Teach Us About Citizenship, Heroism, and Sacrifice”
- “Onward: How Starbucks Fought for Its Life without Losing Its Soul.”
- “From the Ground Up: A Journey to Reimagine the Promise of America.”
- “Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time.”
- “Onward, How Starbucks Fought for Its Life without Losing Its Soul.”
- “Creating a Business You’ll Love: Top Entrepreneurs Share Their Secrets.”
Philanthropic Endeavors
So far, in Howard Schultz success story, we have already realised that he has an altruistic personality and is always looking after the people who are working for him. Because of this nature of his, he co-founded the Schultz Family Foundation and Emes Project LLC; organisations focused on developing opportunities that can even delve into the remotest region. They also partnered with various non-profit businesses to develop entrepreneurial opportunities that are more equitable and create life-changing opportunities for people and communities.
Recognition and Achievements
Howard Schultz received various recognitions and awards for his passion and dedication towards society’s well-being. These awards and accreditations elevated the stature of the Howard Schultz success story; some of them are as follows:
- Fortune’s 2011 Businessperson of the Year.
- Distinguished Business Leadership Award from the Atlantic Council.
- Distinguished Leadership Award from Northwestern University’s Kellogg School of Management.
- Horatio Alger Award recipient.
- Rev. Theodore M. Hesburgh Award for Business Ethics from Notre Dame University’s Mendoza College of Business.
- The Botwinick Prize in Business Ethics was awarded by Columbia Business School.
- the John Wooden Global Leadership Award presented by UCLA Anderson School of Management
- Included in Time magazine’s “Time 200” list of most influential people in the world.
Key Lessons From Howard Schultz Success Story
Howard Schultz success story is full of adventure, determination, hard work, and the ambition of the common man to rise from rags to riches. His story not only motivates us to push our limits and work harder for our dreams but also imparts us value lessons:
- Howard Schultz success story teaches us to have clarity and passion in our lives.
- It also teaches us to be adaptable and persistent with our vision and embrace new technology.
- Howard Schultz success story also teaches us to lead with integrity and empower and value our employees.
- We also learnt that we should always strive to uplift people’s lives and have a positive impact.
