How Howard Schultz Built Starbucks into a Global Coffee Empire

When Howard Schultz, Starbucks’ chairman, president, and CEO, walks into a room of 1,200 employees, the cheers and whistles are immediate. To millions, he’s not just the man behind the green siren logo—he’s the leader who turned a small Seattle coffee bean shop into a global coffee phenomenon while building a company culture centered on respect, shared success, and human connection.

So how did Howard Schultz grow Starbucks from 11 stores to over 30,000 worldwide, with a workforce exceeding 300,000? Through relentless store visits, employee-first policies, and digital transformation—all while keeping people, not profits, at the center.

The Rise of a Coffee Leader

Today, Schultz is 61 years old and still deeply involved in the business. He rises at 4:30 a.m. daily to brew French press coffee, reads three newspapers over breakfast, walks the dogs, exercises, then makes coffee for his wife before starting work at 6:30. For decades, he’s visited 25 stores per week and led strategic meetings on topics ranging from store design to marketing—and, recently, digital and eCommerce strategy. 'I’m lucky I don’t need much sleep,' he jokes.

His work ethic became legendary after he returned as CEO in 2008. His first move? Asking partners (employees) to email him directly. That first month, he received around 5,000 emails—and replied to as many as he could.

A Culture of Respect and Shared Success

Schultz insists on calling employees 'partners'—a reflection of his belief that people are Starbucks’ greatest asset. 'The partner is the soul of the Starbucks experience,' he says. Since the company’s founding, Schultz has prioritized partners over customers, and customers over shareholders.

This philosophy extends into tangible benefits. Since 1988, part-time partners working over 20 hours weekly have received healthcare coverage—a rarity in the U.S. retail sector. In 1991, Starbucks introduced Bean Stock, allowing partners to buy stock options after 90 days of employment at 20+ hours per week—even in China, with a 15% discount via payroll deduction. Since Starbucks went public in 1992, its share price has risen over 50x.

'If shareholders complain about healthcare costs, I tell them to sell their stock,' Schultz has said. For him, dividends aren’t just shareholder returns—they’re another form of partner benefit alongside free coffee, tuition assistance, and health plans.

Innovation, Localization, and the ‘Fourth Space’

Under Schultz’s leadership, Starbucks embraced bold innovation. When expanding beyond the U.S. and Europe, many advised targeting India over China, citing tea-drinking habits. Schultz saw opportunity in China’s untapped coffee market. By 2011, he had consolidated operational control in most of China under direct Starbucks management, shifting decision-making to the Asia-Pacific hub. The company also localized its stores with bamboo décor, festive offerings like mooncakes and zongzi, and seasonal drinks such as Peach Blossom Latte for Valentine’s Day.

Schultz closed underperforming locations and focused on quality growth through innovation. He launched new food and beverage items tailored to local tastes and redefined the customer experience beyond the physical store—what he calls the 'third place'—by creating a 'fourth space' through mobile apps, WeChat, and social media. In the U.S., the Starbucks Rewards program counts 7 million members. In China, Starbucks’ digital platforms engage 2 million customers via Weibo and WeChat.

'We’re not just a coffee company. We’re a brand about human connection,' Schultz explains. The company tracks consumer feedback in real time using digital tools and encourages community engagement. By the end of this year, Starbucks partners in China will have contributed over 100,000 volunteer hours in local communities.

Frequently Asked Questions

Who is Howard Schultz?

Howard Schultz is the former chairman, president, and CEO of Starbucks, credited with transforming the company from a small coffee bean retailer into a global coffeehouse chain with over 30,000 stores. He is known for promoting a people-first corporate culture and leading major innovations in digital and international expansion.

What is Starbucks’ ‘partner’ culture?

Starbucks refers to its employees as ‘partners’ to emphasize their role as co-owners of the company’s mission. This includes offering healthcare to part-timers, equity through Bean Stock, and a strong emphasis on respect, dignity, and shared success.

How did Schultz grow Starbucks internationally?

Schultz led Starbucks’ international growth with a focus on localization. In China, he prioritized understanding local tastes, introducing culturally relevant products, redesigning stores with regional elements, and establishing a direct management model to ensure faster, more relevant decision-making.

What is the ‘third place’ and ‘fourth space’ at Starbucks?

The ‘third place’ is Starbucks’ concept of a community space between home and work. The ‘fourth space’ extends this digitally through apps, social media, and mobile platforms, enabling connections and engagement beyond physical stores.

What are some key benefits Starbucks offers its partners?

Partners receive healthcare coverage (even for part-timers), equity participation via discounted stock purchase plans, tuition assistance, and free coffee. These benefits are core to Schultz’s vision of partnership and mutual success.

How did Schultz approach digital innovation at Starbucks?

Schultz pushed Starbucks into the digital era by integrating mobile payments, loyalty programs, and social media. He viewed technology not just as a sales tool but as a means to strengthen customer relationships and tell the Starbucks story globally.

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