How Howard Schultz Turned Starbucks from a Small Coffee Company into a 100 Billion Dollar Empire

In the shadow of towering Brooklyn housing projects where dreams often withered before they could bloom, a small boy was daring to dream big.
This is the story of Howard Schultz — the man who transformed a humble coffee bean into a $100 billion global empire, the iconic Starbucks.

Watch the full inspiring video here: 

A Childhood Forged in Struggle

Born on July 19, 1953, in Brooklyn, New York, Howard’s early life was marked by hardship. Growing up in a working-class family cramped into a 1BHK apartment in a public housing society, life in Canarsie offered little in the way of opportunity.

Howard watched his father, Fred Schultz, work tirelessly through multiple low-paying jobs — a truck driver, factory worker, and more — none of which provided benefits, insurance, or stability.
But everything changed one cold morning in 1961. Fred slipped on a sheet of ice during a delivery run, breaking his hip and ankle. With no health insurance and no worker’s compensation, the family was plunged deeper into debt. Howard, just seven years old, watched his father’s helplessness and despair — a haunting image that left a deep scar on his heart.

In the silent gloom of their modest apartment, young Howard made himself a solemn promise: "Success is best when it is shared with all."

The Relentless Rise

Howard’s determination became his guiding force. He became the first in his family to attend college, earning a football scholarship to Northern Michigan University. But fate intervened — a jaw injury ended his athletic dreams and his scholarship.

Did he give up?
Never.

Howard sold his blood for money, took out loans, worked odd jobs — anything to survive — and finally graduated in 1975 with a Bachelor’s degree in Communications.

He started his career at Xerox, where his grit and hunger for success shone through. Making 50 cold calls a day across New York City, he learned the fundamentals of sales and resilience.

But destiny had something richer brewing for him.

The Coffee Revelation

In 1979, Howard joined Hammarplast, a Swedish housewares company, overseeing their U.S. operations.
It was here that he first discovered a small Seattle coffee retailer called Starbucks, one of his clients.

Important to note: Howard was not the founder of Starbucks.
The company was started in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker, focused on selling high-quality coffee beans.

By 1982, impressed and intrigued, Howard joined Starbucks as Head of Retail and Marketing.

A year later, on a trip to Milan, Italy, Howard had an epiphany. There, coffee was not just a drink — it was a community experience. People gathered in cafés to socialize, connect, and share life over espresso.

Returning to America, Howard passionately pitched this vision to Starbucks' founders.
They rejected it.

Betting Everything on a Dream

Faced with a choice — stay safe or pursue his vision — Howard chose the harder road.
In 1985, he left Starbucks and founded Il Giornale, a coffeehouse inspired by Italian espresso bars.

It wasn’t easy. He was rejected by 217 out of 242 investors. But Howard’s perseverance paid off.
By 1986, the first Il Giornale café opened, offering coffee as an experience, not just a product.

Then, destiny came full circle.

In 1987, the original Starbucks owners decided to sell the company.
Howard seized the opportunity, raising $3.8 million to buy Starbucks, merging it with Il Giornale.

Under his leadership, Starbucks evolved from a modest coffee bean retailer into a global phenomenon.

A Global Movement — and a Crisis

Starbucks expanded aggressively — city after city, country after country.
But success brought new problems. Rapid growth began to erode the original Starbucks experience. Stores felt mechanical, detached, and ordinary.

In 2000, Howard Schultz stepped down as CEO, hoping fresh leadership would steer Starbucks’ next phase.
But without him, Starbucks began to drift.

By 2008, amidst a crushing economic recession, Starbucks was floundering.

Howard’s Unprecedented Comeback

Howard returned in 2008 — and his first move shocked the business world:
He shut down every Starbucks store across the U.S. — 7,100 locations — for barista retraining.

Critics called it crazy. Howard called it necessary.

He was determined to rekindle the Starbucks soul:
✅ Refocus on coffee quality
✅ Rebuild customer connection
✅ Re-inspire the brand's purpose

While other companies cut benefits during the recession, Howard did the opposite —
✅ Expanded healthcare benefits for part-timers
✅ Offered stock options for baristas
✅ Invested in community and connection

Howard was living up to the promise he made as a boy: "Success is best when shared."

Hard Choices, Bold Results

To stabilize the company, Howard made painful choices: 

•  Closed 600 stores in 2008
•  Closed another 300 stores in 2009
•  Cut jobs to preserve the company’s soul and financial health.

Through these actions, Starbucks emerged stronger, more resilient, and more connected to its roots.

The results were extraordinary:

•  Customers returned.
•  Morale soared.
•  Innovation reignited.
•  Profits surged.

A Legacy of Connection

From a few stores in Seattle to over 40,000 stores worldwide, Starbucks today stands as a global symbol of connection, community, and care — not just coffee.

Howard Schultz didn’t just build a coffee empire.
He built a movement that changed how America — and the world — experiences coffee.

👉 Watch the powerful story here: HOW Howard Schultz Turned a Small Coffee Company into a 100 Billion Dollar Empire.

Conclusion:
Howard Schultz’s journey reminds us that no matter where you start, no matter how tough the odds, vision, perseverance, and heart can change everything.
Because sometimes, one cup of coffee — shared with heart — can spark a global revolution.

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