How did the legendary chairman of Starbucks, Howard Schutz, turn the coffee bean store into the number one place in the world?

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Howard Schutz turned the coffee shop into a large-scale global business, making Starbucks the representative of the "second coffee wave" and changing the way Americans drink coffee. After joining, buying and leading Starbucks for more than 30 years, Howard Schutz announced that he would step down as executive chairman of Starbucks.

After joining, buying and leading Starbucks for more than 30 years, Howard Schutz announced that he would step down as executive chairman of Starbucks.

"on June 26, 2018, I will officially leave the company and become honorary chairman," Howard Schutz wrote in a letter to Starbucks partners.

The company announced that Ulmann (Myron Ullman), who joined Starbucks in 2003 after serving as a senior executive at JC Penney, will succeed Howard Schutz as executive chairman, while Mellody Hobson will become vice chairman. However, a press release from Starbucks did not say who would succeed Howard Schutz in managing the retail business of Starbucks' high-end ──, including Starbucks Zhenxian and Bakery.

What is remarkable about Howard Schutz is that it has turned the coffee shop into a large-scale, global business, making Starbucks the representative of the "second coffee wave". In 2017, Starbucks became the second largest restaurant brand in the United States, with turnover second only to McDonald's.

Before Starbucks, coffee mostly appeared in the form of packaged food (the "first coffee wave"). With the exception of Nestl é and Maxwell, the now well-known cafes Peet's Coffee and Starbucks were originally coffee bean companies. Before the 1980s, Americans would make coffee at home, but there were few restaurants that served espresso.

Inspired by the culture of Italian cafes, Howard Schutz put forward the idea of experimenting with selling freshly ground coffee in 1984. At the time, the business was a sideline of Starbucks and was not favored by Howard Schutz's boss at the time, but Howard Schutz believed that Americans needed a third space like a cafe. According to what he says in his autobiography Pour Your Heart into It:

"A link relationship that brings together people who like coffee. "

In 1987, Howard Schutz took over Starbucks, which had only six stores at the time, and began to expand rapidly and scale up. Starbucks' share price has risen 210-fold since it went public in 1992. Starbucks has become a restaurant brand with annual revenue of more than $20 billion and now has more than 28000 stores.

Around 2000, feeling too tired, Howard Schutz resigned from his position as CEO of the company to become Starbucks' chief global strategist in charge of international market development.

Around 2007, Starbucks expanded too quickly into many non-professional areas, which was a drag on its performance; in 2008, it was hit by the global financial tsunami. Howard Schutz returned as CEO and took a series of steps to re-emphasize the quality of Starbucks coffee-including suspending operations in more than 7000 stores across the US, retraining baristas, closing lossmaking stores and layoffs, and cutting some product lines and businesses.

In the 2010 fiscal year, Starbucks' financial indicators returned to a healthy level after Howard Schutz adjusted Starbucks' physique on a large scale, coupled with the recovery of the international economic situation.

Almost every crisis, he needs to stand up and act as the spokesman of the company.

Howard Schutz mentioned his plan to retire in a year's time within the Starbucks board a year ago, originally scheduled for May 2018. However, after the "race incident at Starbucks in Philadelphia" broke out in early April, Starbucks decided to close its store on May 28 to train staff across the United States, forcing Howard Schutz to postpone his retirement. Howard Schutz chronology. JPG curiosity Daily

After Howard Schutz leaves Starbucks, will Starbucks develop smoothly in the future? Or will it be in crisis as it was last time?

Starbucks also faces many challenges: it is too common in US stores (more than McDonald's) and has lost its appeal to some consumers; it has been hit by cheap coffee sold by fast-food chains such as McDonald's and Dunkin' Donuts, as well as boutique coffee shops such as Blue bottle Blue Bottle, Stumptown and independent cafes everywhere.

Starbucks' same-store growth (old stores that have been open for more than a year) is slowing: in the second quarter of fiscal 2018, passenger flow in the US market was flat and in-store consumption orders did not grow; in China, its same-store sales grew 4 per cent, much slower than 6 per cent in the previous quarter and 7 per cent in fiscal 2017. Starbucks needs new growth points.

Even so, Howard Schutz seems to have made up his mind. After overseeing the opening of Starbucks selection workshops in Milan and New York in September and October, he will bid farewell to company affairs. He said in an interview:

"there is never the best time to leave. I told myself a year ago that if I were still in the company, it would be impossible for me to explore a second career. "

Howard Schutz always avoids the question of willingness to go into politics. "I don't want to make sensational headlines," he said in an interview with the New York Times after announcing his resignation. I have been worried about the increasing division of our country at home and the international situation for some time. "

He continued: "in the next chapter of my life, I want to find a way to give back to society and my country." Although I'm not sure exactly in what way. Howard Schutz did not directly acknowledge that he would go into politics in the future, but mentioned that he intended to consider a number of options, one of which is public service. When asked whether he would run for president, he did not directly deny it.

After Trump became president from a real estate tycoon, a number of entrepreneurs have shown their willingness to run for president, including Disney CEO Robert A. Iger and Mark Cuban, the owner of the Dallas Lone Ranger (formerly the Dallas Mavericks). And Howard Schutz is also a potential ──. He is not only a star CEO, but also a moral role model for many years. Under his leadership, Starbucks has made no secret of its position on gay equality, race relations, gun issues and veteran welfare. Howard Schutz has said that Starbucks has achieved a "delicate balance between profit and conscience".

This article is from Curiosity Daily, by Dong Zhifei.