Howard Schultz

Howard D. Schultz (born July 19, 1953) is an American businessman, author, and billionaire who served three separate times as chief executive officer of Starbucks: 1986-2000, 2008-2017, and 2022-2023. He is widely credited with transforming Starbucks from a small Seattle coffee roaster into one of the world's most recognizable brands and largest coffeehouse chains, with over 35,000 locations globally.

Schultz grew up in the Brooklyn housing projects, the son of a truck driver who never earned more than $20,000 per year. His journey from poverty to billionaire entrepreneur represents one of America's most iconic rags-to-riches stories. Under his leadership, Starbucks popularized specialty coffee culture in America, created the "third place" concept between home and work, and pioneered employee benefits like stock options and health insurance for part-time workers.

However, Schultz's legacy is complicated by intense labor controversies. He is notably anti-union and has aggressively fought Starbucks workers' unionization efforts since the 1980s through 2023, earning criticism from labor activists and politicians including Senator Bernie Sanders. His final stint as CEO (2022-2023) was dominated by battles with organizing baristas and congressional testimony about union-busting allegations.

As of 2024, Schultz's net worth is estimated at $3.5 billion. He married interior designer Sheri Kersch in 1982 after meeting her in the Hamptons in 1978, and they have two children. Schultz has written several books, considered running for U.S. President as an independent in 2020, and remains Chairman Emeritus of Starbucks.

Early Life

Howard D. Schultz was born on July 19, 1953, in Brooklyn, New York, to a Jewish family living in the Canarsie Bayview Houses public housing projects. His father, Fred Schultz, worked as a truck driver, factory worker, and taxi driver, never earning more than $20,000 annually. His mother, Elaine, was a receptionist. The family struggled financially throughout Schultz's childhood.

A formative childhood memory that shaped Schultz's business philosophy occurred when his father broke his ankle at work and lost his job with no health insurance or workers' compensation. Seven-year-old Howard watched his family fall into crisis, an experience that led him to later prioritize employee benefits at Starbucks.

Schultz attended Canarsie High School in Brooklyn. He was a gifted athlete, particularly in football and baseball, which became his ticket out of poverty. In 1971, he became the first person in his family to attend college, receiving an athletic scholarship to Northern Michigan University in Marquette, Michigan.

At Northern Michigan, Schultz earned a Bachelor of Science in Communications in 1975. The college experience exposed him to a world beyond the housing projects and ignited his ambition. He worked various part-time jobs to supplement his scholarship and support himself.

Early Career (1975-1982)

After college, Schultz moved to New York and worked as a salesman for Xerox Corporation, selling word processors. He proved to be a talented salesman, developing skills in relationship building and persuasion. After three years at Xerox, he joined Hammarplast, a Swedish housewares company, as vice president and general manager of U.S. operations, overseeing a sales force marketing kitchen equipment and coffee makers.

Discovery of Starbucks (1981-1982)

In 1981, while working for Hammarplast, Schultz noticed that a small Seattle coffee roaster called Starbucks Coffee Company was ordering an unusually large number of drip coffeemakers. Intrigued, he visited Seattle in 1981 to see the business firsthand.

Starbucks at the time was just four stores selling whole coffee beans and equipment, founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker. Schultz was captivated by the quality of the coffee and the passion of the founders. He became convinced there was enormous potential in selling freshly roasted premium coffee.

Schultz persuaded the founders to hire him as director of retail operations and marketing in 1982, moving his family to Seattle. However, he had a vision the founders didn't share: selling brewed coffee by the cup, Italian espresso-bar style, not just beans.

Il Giornale and Acquiring Starbucks (1985-1987)

In 1983, Schultz visited Milan, Italy, and was struck by the Italian coffeehouse culture—espresso bars on every corner serving as community gathering places. He became convinced this model could work in America. When Starbucks' founders rejected his proposal to serve coffee drinks, Schultz left in 1985 to start his own company.

He founded Il Giornale (Italian for "The Newspaper") in 1986, modeling it after Italian espresso bars. To fund Il Giornale, Schultz pitched 242 investors, with 217 rejecting him. He ultimately raised $1.65 million from 242 investors.

In 1987, the original Starbucks owners decided to sell. Schultz,with backing from local investors, purchased Starbucks for $3.8 million and merged it with Il Giornale, keeping the Starbucks name and logo. At 33 years old, Schultz became CEO of Starbucks with 17 stores.

Building Starbucks (1987-2000)

Under Schultz's leadership, Starbucks expanded aggressively:

1987: 17 stores
1989: 46 stores
1992: 165 stores (went public at $17/share, raising $25 million)
1996: 1,000+ stores
2000: 3,500+ stores in multiple countries

Schultz's strategy included:

Third Place Concept: Positioning Starbucks as a "third place" between home and work
Premium Experience: High-quality coffee, comfortable seating, consistent experience
Employee Benefits: Revolutionary for retail—health insurance for part-time workers, stock options (Bean Stock), college tuition coverage
Rapid Expansion: Opening new stores at unprecedented pace
International Growth: Entering Japan (1996), UK, other markets

By 2000, Starbucks had become a cultural phenomenon, synonymous with coffee culture in America and beyond. Schultz stepped down as CEO to become chairman, believing the company needed fresh operational leadership.

First Retirement and Return (2000-2008)

From 2000 to 2008, Schultz served as chairman while others ran day-to-day operations. However, by 2007, he became concerned that rapid expansion had diluted the Starbucks experience. In a leaked memo, he wrote about the "commoditization of the Starbucks experience."

In 2008, with Starbucks struggling—stock price down 50%, comparable sales declining, McDonald's launching competitive coffee—Schultz returned as CEO to save the company he built.

Second Stint as CEO (2008-2017)

Schultz's second tenure as CEO focused on revitalization:

Store Closures: Closed 600 underperforming U.S. stores
Retraining: Closed all U.S. stores for afternoon to retrain 135,000 baristas
Product Innovation: Launched VIA instant coffee, expanded food offerings
Digital: Mobile ordering, digital payments, loyalty program
China Expansion: Aggressive growth in China (now largest market outside U.S.)
Social Initiatives: Race Together campaign, veteran hiring, college tuition program

Under his leadership, Starbucks recovered and reached new heights:

Stock price increased nearly 500%
Global stores grew to 28,000+
Revenue reached $22+ billion
Digital/mobile became industry-leading

Schultz stepped down again in 2017, transitioning to executive chairman, believing he'd positioned Starbucks for continued success.

Political Ambitions (2019-2020)

After leaving Starbucks in 2018, Schultz explored running for U.S. President as an independent in 2020. He positioned himself as a centrist alternative to both parties, criticizing progressive Democratic proposals like Medicare for All as unrealistic while opposing Trump's Republican Party.

The potential candidacy generated controversy, with Democrats fearing he would split anti-Trump votes and ensure Trump's reelection. After months of exploration, speaking engagements, and public criticism, Schultz announced in September 2019 he would not run, citing health concerns.

Third Stint as Interim CEO (2022-2023)

In March 2022, Schultz returned as interim CEO after Kevin Johnson's retirement, promising to serve until a permanent successor was found. This third term was dominated by labor conflict.

By 2022, Starbucks workers at hundreds of stores had begun unionizing with Starbucks Workers United. Schultz opposed unionization, characterizing unions as unnecessary given Starbucks' benefits. Critics accused the company of illegal union-busting tactics including:

Firing pro-union workers
Closing stores that voted to unionize
Withholding wage increases from unionized stores
Surveillance and intimidation of organizers

In March 2023, Schultz testified before the Senate Health, Education, Labor, and Pensions Committee, chaired by Senator Bernie Sanders. The contentious hearing examined allegations of labor law violations. Schultz defended Starbucks while Sanders accused him of "union-busting."

Schultz stepped down as CEO in March 2023, succeeded by Laxman Narasimhan (who was later replaced by Brian Niccol in 2024). He remained on the board until September 2023, then left entirely.

Personal Life

Marriage to Sheri Kersch

While an interior design student, Sheri Kersch met Schultz in the Hamptons in 1978. Schultz later wrote in his memoir: "With her flash of long wavy blonde hair and unflagging energy, Sheri attracted me with her impeccable style and class. She was not only beautiful but well-grounded, with solid midwestern values, from a close and loving family."

They married in 1982, the same year Schultz joined Starbucks. Sheri was working and seven months pregnant while Schultz was building Starbucks from the ground up. When Schultz was struggling to raise capital and Sheri's father told him to "get a real job," Sheri urged him to keep pursuing his vision.

Sheri became an interior designer and has stayed largely out of the public eye despite her husband's fame. She has been described as his anchor and closest advisor.

Children

Schultz and Sheri have two children: Jordan and Addison. The family has maintained privacy around their children, who have largely stayed out of the spotlight.

Residences and Lifestyle

The Schultzes own properties in Seattle and other locations. Despite his billions, Schultz has described himself as relatively modest, though he owns significant real estate and has made substantial political donations.

Controversies

Anti-Union Position

Schultz's most significant ongoing controversy is his aggressive opposition to unions, which critics view as hypocritical given his advocacy for employee benefits:

Fought unionization since the 1980s
2022-2023: Over 300 Starbucks stores voted to unionize; company accused of illegal union-busting
NLRB found Starbucks violated labor law hundreds of times
Congressional testimony where Sanders accused him of "illegal union-busting"

1. 1. Israel-Palestine Involvement===

From October 2023 through May 2024, Schultz participated in a group chat with powerful U.S. business leaders that received private briefings from Israeli government members and worked closely with Israel during the Gaza conflict, raising questions about political involvement and potential conflicts.

Political Ambitions and Stock Holdings

His potential presidential run prompted calls to sell Starbucks stock to avoid conflicts of interest. Though he considered a blind trust, he never fully committed to divesting.

Race Together Campaign

In 2015, Schultz launched "Race Together," encouraging baristas to write "Race Together" on cups to spark conversations about race. The campaign was widely mocked and quickly abandoned as tone-deaf and forced.

Philanthropy and Advocacy

Schultz has been involved in various causes:

Veterans hiring initiatives
College tuition coverage for employees
Schultz Family Foundation supporting youth and veterans
Writing books donating proceeds to charity

However, critics note his anti-union stance undermines his progressive image.

Net Worth and Compensation

As of 2024, Howard Schultz's net worth is $3.5 billion, derived primarily from Starbucks stock accumulated over decades. His wealth fluctuates with Starbucks' stock price.

Legacy

Howard Schultz's legacy is complex:

Achievements:

Built one of world's most valuable brands from near nothing
Popularized specialty coffee culture in America
Pioneered progressive employee benefits in retail
Created iconic "third place" cultural phenomenon
Demonstrated that treating employees well can be profitable

Criticisms:

Aggressive union-busting contradicts progressive image
Rapid expansion sometimes prioritized growth over quality
Political ambitions seemed self-serving
Periodic missteps (Race Together, presidential run)

History will likely remember Schultz as a transformative business leader who built an iconic global brand while remaining a controversial, polarizing figure.

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