How Howard Schultz Built Starbucks in China

When Howard Schultz, Starbucks’ chairman, president, and CEO, walks into a room of 1,200 employees, the response is instant: cheers, whistles, applause. That kind of reaction isn’t just about the company’s global success—it’s about Schultz himself. Known inside Starbucks as a leader who built more than a coffee empire, he’s made ‘partners’ (not employees) and shared values central to the company’s identity.

Yes, Schultz is in China again—this time meeting 1,200 partners and their families in Guangzhou. With 1,200 stores and nearly 20,000 partners today, up from just 450 stores in 2011, China is on track to become Starbucks’ second-largest market by the end of this year.

Who Is Howard Schultz to Starbucks?

At 61, Schultz remains deeply involved in the business. He rises at 4:30 a.m., brews French press coffee, reads three newspapers over breakfast, walks his three dogs, exercises, then makes coffee for his wife before starting work at 6:30. For over 20 years, he’s visited 25 stores per week, led strategic meetings on store design and marketing, and recently taken a greater role in digital and eCommerce strategy. 'I’m lucky I don’t need much sleep,' he jokes.

The Partner-Centric Culture

Schultz insists on calling employees ‘partners.’ This philosophy isn’t just HR talk—it shapes decisions. One well-known story: after reclaiming the CEO role in 2008, he invited partners to email him directly. In the first month, he received around 5,000 emails—and replied to as many as he could. For Schultz, Starbucks has never been solely about profit. 'The most important asset is our partners, then customers, then shareholders,' he says. The partner experience is the soul of the brand.

Starbucks’ Expansion in China

China’s growth has been rapid. Three years ago, there were 450 stores; now there are 1,200. The ‘partner return home’ program lets partners manage new stores in cities close to family, supporting both personal needs and the company’s push into second- and third-tier cities. With this momentum, China is poised to surpass other markets and become Starbucks’ second-largest by year’s end.

Performance Amid Global Challenges

Despite global economic downturns, Starbucks’ performance has remained strong. Since 2010, the company has seen consistent growth. In Q1 2014, net profit rose 9% year-over-year, and same-store sales increased 6%. This marks multiple consecutive quarters of growth. Schultz calls it the best period in Starbucks’ 40-plus year history. He believes future success lies not just in scale, but in nurturing the company’s human-centric culture.

Frequently Asked Questions

How many Starbucks stores are there in China?

As of the time of the article, there were nearly 1,200 Starbucks stores in China, up from 450 just three years prior.

What is Starbucks’ ‘partner return home’ program?

The program allows partners to work in new stores located near their families, particularly in second- and third-tier Chinese cities, aligning with the brand’s expansion strategy.

How often did Howard Schultz visit stores?

Schultz visited approximately 25 Starbucks stores per week for over 20 years as part of his hands-on leadership style.

What does Schultz consider Starbucks’ most important asset?

Schultz has consistently stated that Starbucks’ partners (employees) are its most important asset, followed by customers and then shareholders.

How is Starbucks performing in China compared to other markets?

China is on pace to become Starbucks’ second-largest market globally, with strong growth in store count and profitability metrics like same-store sales and net profit.