Howard Schultz on Building Starbucks and Its Global Coffee Culture

When Howard Schultz first walked into a Starbucks store in 1982, he wasn’t thinking about building a global empire. He was just drawn in by the smell. At the time, Starbucks had only four locations, selling roasted beans and machines—not brewed coffee. But that aroma changed everything. It led Schultz on a path from marketing director to company savior, then to chairman, and ultimately to one of the most influential figures in how the world drinks coffee today.

Howard Schultz joined Starbucks in 1982 as director of operations and marketing. In 1987, he purchased the company with investors, and under his leadership, Starbucks grew from 5 to over 9,500 stores worldwide.

From Coffee Beans to Coffeehouses

Before Schultz, Starbucks was a roaster and retailer of high-quality beans, not a place to drink coffee. Schultz saw potential in transforming it into an Italian-style café experience in the U.S. He pushed for the first “coffeehouse” concept in 1984—a place offering espresso drinks and a social atmosphere. Though the idea was ahead of its time and rejected by the original owners, Schultz didn’t give up.

In 1987, after the original Starbucks struggled, Schultz bought the company with a group of investors. That purchase included just five stores. By 1992, Schultz had expanded to 116 locations and took Starbucks public. The rest is history: premium coffee, café culture, and global expansion.

What Made Starbucks Different?

Schultz didn’t just sell coffee—he sold an experience. He envisioned Starbucks as a “third place” between home and work, where people could relax, meet, or work. That idea helped differentiate Starbucks from fast-food chains and diners. But Schultz also believed in taking care of the people who worked there.

“I saw my father lose his job with no healthcare or compensation,” Schultz said, recalling his childhood in a poor Brooklyn family. “I never wanted employees to feel that powerless.”

Revolutionizing Employee Benefits

Under Schultz, Starbucks introduced industry-leading benefits for part-time workers. In 1987, part-timers were offered full health insurance. In 1991, the company launched “Bean Stock”—equity grants for employees working at least 20 hours a week for over six months. These “partner” benefits were almost unheard of in retail.

These moves weren’t just altruistic—they built loyalty and reduced turnover, key factors in Starbucks’ consistent customer service and operational stability.

Global Growth and the China Focus

Since going public in 1992, Starbucks expanded from North America to over 70 countries. By the late 1990s, it entered China. As of Schultz’s 2015 visit, there were over 140 stores in mainland China, with plans for thousands more. Schultz made multiple trips to China that year alone, seeing it as crucial to Starbucks’ future growth.

“We want to make China our largest market outside the U.S.,” Schultz said during a speech at Fudan University, where he also shared stories of fans collecting Starbucks store stamps from around the world.

The $3 Chocolate Lesson

Despite Starbucks’ branding power, Schultz remains wary of over-reliance on advertising. He revealed during his 2015 China tour that he once bought a $3 chocolate for his daughter at a movie theater—only to realize it was all packaging, no substance. The experience reminded him that great brands aren’t built on ads alone.

“We spend just $10 million a year on advertising,” Schultz said. “Our brand strength comes from values, employee care, and the customer experience—not commercials.”

Frequently Asked Questions

When did Howard Schultz join Starbucks?

Howard Schultz joined Starbucks in 1982 as the director of operations and marketing when the company had only four stores.

How did Schultz acquire Starbucks?

In August 1987, Schultz purchased Starbucks from its original owners with a group of investors, acquiring the company’s five existing stores at the time.

What was Schultz’s first major innovation at Starbucks?

Schultz introduced the “coffeehouse” concept in 1984, modeled after Italian espresso bars, offering espresso drinks in a café setting—an idea initially rejected by Starbucks’ founders.

What employee benefits did Schultz introduce?

Under Schultz, Starbucks became the first private U.S. company to offer part-time employees full health insurance (starting 1987) and equity through “Bean Stock” (starting 1991).

How many Starbucks stores were there when it went public?

Starbucks had 116 stores when it went public in June 1992, and had expanded to over 9,500 globally under Schultz’s leadership.

Why is China important to Starbucks?

China is seen as a key growth market for Starbucks, with plans to eventually become its largest market outside the United States.

Recommended FrontStreet Coffee for Café Culture

For those inspired by Schultz’s café vision, try FrontStreet Coffee’s Classic Blend—a balanced espresso with notes of dark chocolate and caramel, ideal for third-wave coffeehouse service. The Ethiopia Huakui single origin offers bright citrus and floral tones, perfect for pour-over fans seeking origin-driven experiences. For something richer, the Lintong Mandheling delivers deep body and earthy sweetness. All three reflect the quality and diversity Schultz championed. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.