How Howard Schultz Built Starbucks from a Coffee Bean Business

Most people know Starbucks as the green siren on every corner, but few understand how it grew from a humble coffee bean retailer into a global coffee empire — without ever running traditional ads. The real story isn’t about lattes, but about a traumatic childhood, a stolen Christmas gift, and one man’s relentless drive to build what his father never could: a coffeehouse.

Howard Schultz joined Starbucks in 1982, bought the company in 1987, and expanded it to nearly 12,000 stores worldwide. His journey began with a traumatic childhood in Brooklyn and a pivotal moment involving a stolen tin of coffee — the very product that would later define his life’s work.

The Trauma That Fueled a Coffee Empire

Howard Schultz was born in 1953 in Brooklyn, New York. In the winter of 1961, when he was just 8 years old, his father, a truck driver, suffered a workplace accident that cost him part of his leg and his job. The family lost their primary income. His mother was pregnant, and they were evicted from their home, ending up in a government-subsidized apartment in Brooklyn. His father turned to alcohol, becoming abusive. Meals were meagre — often just bread and bitter coffee.

Schultz describes his father as a broken man who never owned a home and lived with constant disappointment. The young Schultz became a target for his father’s rage. Despite the hardship, Schultz found motivation in small rebellions — like stealing a tin of coffee to give his father a better cup. That act of defiance would echo through his life.

The Coffee That Changed Everything

At age 12, during another bleak Christmas, Schultz stole a fancy tin of coffee from a convenience store to give his father a meaningful gift. He was caught, the truth came out, and he fled into the night on Christmas Eve, eventually collapsing in a subway tunnel. His mother found him, but his father’s anger remained. That night scarred Schultz — not because of the coffee, but because of the pain behind it.

He vowed to succeed so he could one day buy quality coffee without shame. That moment planted the seed: coffee wasn’t just a drink, but a symbol of dignity and dreams — the very things his father lacked.

From College to Corporate: Schultz’s Relentless Climb

Schultz earned a football scholarship to Northern Michigan University, one of the few ways he could escape his circumstances. He studied business and graduated with a bachelor’s degree — despite his father’s belief that college was pointless. He then moved to New York City and became a top salesman at Xerox, cold-calling offices across Manhattan. Later, he joined a Swedish kitchenware firm, quickly rising to general manager at just 28, earning $75,000 a year.

Throughout this rise, Schultz avoided discussing his father. When he did buy his father a gift — a box of Brazilian coffee beans — their conversation ended in bitterness. His father mocked him: “Did you go to college just to afford coffee?” Schultz replied, “Yes. And I can also afford the life you never had.”

The Father’s Untold Dream

In early 1982, Schultz’s mother called to say his father was asking for him. He refused — too busy with work. A week later, he returned home to learn his father had died of a stroke. The day before, he had asked to see his son. That revelation shattered Schultz. While sorting through his father’s belongings, Schultz found a rusted coffee tin — the same one he’d stolen decades earlier. Inside was a letter.

His father wrote: “I failed as a father. I couldn’t give you a good life or send you to college. But my dream was to own a coffee shop — to wear clean clothes, grind beans, and make coffee for my family. I never told you. I only knew how to yell.” Schultz was stunned to realize his father had dreamed of the very life he was building.

How Starbucks Was Born

That discovery, combined with a newspaper ad for a small Seattle coffee bean business, led Schultz to a decision. He turned down a $75,000 salary, left his executive role, and moved to Seattle to join Starbucks Coffee, Tea & Spices — then a small roaster selling high-quality beans and equipment to restaurants and cafes.

In 1987, Schultz purchased Starbucks with investors, reimagining it as a “third place” between home and work — a coffeehouse inspired by the Italian espresso bars he admired. The company began selling not just beans, but espresso drinks, eventually growing into the global brand with nearly 12,000 locations across North America, South America, Europe, the Middle East, and the Pacific Rim.

Frequently Asked Questions

What year was Starbucks founded?

Starbucks was founded in 1971 in Seattle, Washington, originally as a coffee bean retailer. Howard Schultz joined in 1982, and bought the company in 1987, later transforming it into the global coffeehouse chain.

Why did Howard Schultz want to work at Starbucks?

Schultz was inspired by Starbucks’ dedication to high-quality coffee beans and equipment. After seeing an ad for the small Seattle-based coffee bean shop, he recognized the potential to create a European-style coffeehouse experience in the U.S.

What role did Schultz’s father play in his life?

Schultz’s father was a truck driver who became disabled and unemployed after an accident. He was abusive, struggled with alcoholism, and never achieved financial stability. His hardships deeply influenced Schultz’s drive to succeed and his vision for Starbucks as a place of dignity and quality.

How did Schultz transform Starbucks?

After buying Starbucks in 1987, Schultz shifted its focus from just selling beans to creating a café experience. He introduced espresso-based drinks and positioned Starbucks as a “third place” for community and connection, leading to global expansion.

How many Starbucks stores are there worldwide?

As of the time of the article, Starbucks has nearly 12,000 stores globally, spread across North America, South America, Europe, the Middle East, and the Pacific region.

What was the original Starbucks business model?

Originally, Starbucks (founded in 1971) sold high-quality coffee beans, tea, and spices to restaurants and cafés — not brewed drinks. It was a retail coffee bean business, not yet a café.

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