96-465: Starbucks is a chain of coffee shops. Starbuck or Starbucks may also refer to: Starbucks Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle , Washington. It was founded in 1971 by Jerry Baldwin , Zev Siegl , and Gordon Bowker at Seattle's Pike Place Market initially as a coffee bean wholesaler. Starbucks
192-560: A CNN analysis believed that "running on a deficit-reduction platform might end up syphoning as many Republican moderates away from Trump as liberals or independents away from the Democratic nominee." In response to claims that his candidacy would benefit Trump, Schultz said, "Nobody wants to see Donald Trump removed from office more than me." His first town hall in Seattle received mixed reception with protestors holding up "venti mistake" and "grande ego" banners while his actual speech
288-609: A net worth of $ 4.3 billion (October 2020). Schultz started the Schultz Family Foundation to help military veterans and fight youth unemployment. On March 16, 2022, Starbucks announced that CEO Kevin Johnson was retiring and that Howard Schultz would take over as interim CEO until Laxman Narasimhan took over as CEO in April 2023. On March 20, 2023, Schultz announced that he would be stepping down early from
384-444: A socially liberal deficit hawk with fiscally moderate leanings. In June 2018, Schultz stated in an interview that he thought the national debt is "the greatest threat domestically to the country" and that "we have to go after entitlements ." He has also stated that the nation's annual sovereign interest payments , totaling over $ 400 billion in 2020, is "unsustainable." President Barack Obama 's chief economist, Jason Furman ,
480-533: A Company One Cup at a Time was written in 1997 with Dori Jones Yang . His second book, Onward: How Starbucks Fought for Its Life Without Losing Its Soul , co-written with Joanne Gordon, was published in 2011. Jeff Bailey, of the Los Angeles Times , called the book "self-flattering" and criticized its "mostly perfunctory account of Starbucks' actual problems". Publishers Weekly called the book "a personal, suspenseful, and surprisingly open account" of
576-402: A Company One Cup at a Time". Schultz wrote, "I was convinced that under my leadership, employees would come to realize that I would listen to their concerns. If they had faith in me and my motives, they wouldn't need a union." In 2022, as union organizing campaigns started to form at Starbucks, and gain victories, Schultz held a town hall meeting as he returned to the company as interim CEO. In
672-473: A backlash from conservative and religious groups, Schultz told a shareholder meeting that opponents of the stance should "Sell your shares", and "buy shares in another company." His response was widely publicized, with The Washington Post stating: "Schultz [did] something CEOs rarely do: He told off a shareholder." Fortune wrote that Schultz "[took] on gay marriage before it was a topic most executives would even touch. Under his leadership Starbucks became
768-627: A base salary of $ 1.2 million, and stock options granted of $ 7.8 million. In addition to his board membership with Starbucks, Schultz was an early and significant stakeholder in Jamba Juice in 2011, and on the board of payment processing company, Square, Inc ., until 2014. During the summer of 2014, Schultz launched the Starbucks College Achievement Plan, a partnership with Arizona State University , which allows all employees at Starbucks working 20 or more hours
864-417: A candidacy in the 2012 , 2016 , and 2020 U.S. presidential elections as an independent candidate. He declined to join all three contests. His positions on domestic politics are socially liberal and fiscally moderate . In foreign policy, he is seen as a " liberal hawk ", favoring American-led international affairs and neoliberalism . Schultz was named the 209th-richest person in the U.S. by Forbes with
960-412: A candidate memoir as it was published right before the 2020 United States presidential election . His book received 1.9/5 stars on Amazon , after some Democratic voters gave negative reviews, due his possible candidacy splitting the Democratic vote . Rolling Stone called the book "stunningly boring" and an "autobiography of a pretentious oligarch." A book promotion stop at Harvard University led to
1056-415: A centrist. He was reportedly willing to spend $ 300 to $ 500 million on the 2020 election. Schultz's proposed independent candidacy was widely condemned by Democrats who argued that Schultz's third-party candidacy would help to re-elect President Trump by splitting the vote of those opposed to the president. Political scientist Larry Sabato said that Schultz's candidacy was likely to benefit Trump. However,
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#17327763393801152-772: A change in compact direction, Starbucks management transitioned from a singular brand worldwide to focusing on locally relevant design for each store. In May 2014, Starbucks announced ongoing losses in the Australian market, which resulted in all remaining stores being sold to the Withers Group. In July 2017, Starbucks acquired the remaining 50% stake in its Chinese venture from long-term joint venture partners Uni-President Enterprises Corporation (UPEC) and President Chain Store Corporation (PCSC) for US$ 1.3 billion. On March 21, 2018, Starbucks announced that it
1248-559: A few underperforming ones and will restructure through the bankruptcy procedure. Howard Schultz Howard D. Schultz (born July 19, 1953) is an American businessman and author who was the chairman and chief executive officer of Starbucks from 1986 to 2000, from 2008 to 2017, and interim CEO from 2022 to 2023. Schultz owned the Seattle SuperSonics basketball team from 2001 to 2006. Schultz began working at Starbucks in 1982. He later left and opened Il Giornale,
1344-719: A group of ten investors who bought the National Basketball Association 's Seattle SuperSonics and the Women's National Basketball Association 's Seattle Storm from the Ackerley Group for $ 200 million. During his tenure as the SuperSonics team owner, he was criticized for his naïveté and propensity to run the franchise as a business rather than a sports team. Schultz feuded with player Gary Payton , feeling that Payton disrespected him and
1440-659: A half-day behind a store counter each month, and he trained as a barista to immerse himself in the brand and stay close to customers. In June 2023, Starbucks was ordered to pay $ 25 million in punitive damages and $ 600,000 compensatory damages to a former regional manager. The court found that Starbucks fired her in 2018 because she was white. In October 2023, the operator of all of the Starbucks locations in Brazil, SouthRock Capital, declared itself bankrupt. SouthRock will continue to operate Starbucks locations normally while closing
1536-538: A local coffee bean retailer for the first ten years in Seattle. It was founded by business partners Jerry Baldwin , Zev Siegl and Gordon Bowker who first met as students at the University of San Francisco : The trio were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet . Bowker recalls that a business partner of his, Terry Heckler, thought words beginning with
1632-584: A national loyalty program , and enforced fair trade standards. His aggressive expansion in Chinese markets has been credited with reconciling the country's tea-culture with coffee consumption in China . Schultz was succeeded by Kevin Johnson as CEO in April 2017 and Myron Ullman as chairman in June 2018. Schultz has written four books on business. He is an outspoken neoliberal . Schultz publicly considered
1728-635: A notice of formal complaint from the National Labor Relations Board against the retaliatory practices Starbucks had taken against employees who were working to unionize the corporation. On March 29, 2023, Schultz testified before the United States Senate Committee on Health, Education, Labor and Pensions . In response to most of the questions Schultz gave the same answer: "I support the law, and I also take offense with you categorizing me or Starbucks as
1824-415: A potential run in the upcoming 2016 United States presidential election for Schultz. Maureen Dowd , of The New York Times , broke a story on August 1 that friends of "America's lord of latte, Howard Schultz, have been pressing him to join the Democratic primary." Over the next couple of days media outlets began to speculate if Schultz was going to make a formal announcement. According to Fortune , he
1920-516: A review for The Wall Street Journal U.S. Army major general Robert H. Scales stated "after reading this moving book I'll not likely pass a Starbucks again without stopping for a patriotic cup." The Washington Post published a similarly positive review. In 2019, he published his fourth book, From the Ground Up: A Journey to Reimagine the Promise of America . The book was widely seen as
2016-576: A salesman for Xerox in New York. In 1979, he was recruited by French private equity firm PAI Partners in 1979 to be general manager of a Swedish kitchenware manufacturer's U.S. subsidiary, Hammarplast . At Hammarplast, Schultz was responsible for the coffee machine manufacturer's U.S. operations, and in 1981 he visited the Starbucks Coffee Company in Seattle to fill their plastic cone filter orders. In 1982, at age 29, Schultz
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#17327763393802112-497: A series of coffee wars increased Starbucks from 11 coffeehouses in Seattle to 28,000 stores in 77 countries. On June 4, 2018, Schultz announced that he would retire from active management of Starbucks after 37 years, as he was considering amongst other options a campaign for U.S. president. Kevin Johnson , the firm's president and chief operating officer for the previous two years, succeeded Schultz as CEO while Myron Ullman took over as chairman in June 2018. Schultz would return to
2208-566: A series of highly publicized coffee wars . He stepped down as CEO in 2000, succeeded by Orin Smith . Due to the rapid expansion of Starbucks under Schultz's leadership, he has been described as the “ Ray Kroc of his generation”. During the 2008 financial crisis , Schultz returned as chief executive. Succeeding Jim Donald , Schultz led a mass firing of executives and employees and shuttered hundreds of stores. He orchestrated multiple acquisitions of American and Chinese beverage companies, introduced
2304-591: A small student protest. From the Ground Up was featured on The Wall Street Journal 's bestseller list in February, and was listed as a New York Times bestseller for 2019. Reuters rated the book highly, yet called it "caffeine free" for its inability to "harness his business success" in a potential White House run. Schultz is an outspoken neoliberal , centrist , technocratic , and political independent. Schultz's political positions are similar to
2400-408: A social hub is widely seen as introducing the second wave of coffee culture in the U.S., particularly in Seattle . On June 26, 1992, Starbucks had its initial public offering (IPO) and trading of its common stock under the stock ticker SBUX. The IPO raised $ 271 million for the company and financed the doubling of their stores. On June 1, 2000, Schultz stepped down as CEO of Starbucks, moving to
2496-431: A specialty coffeeshop that merged with Starbucks during the late 1980s. Under Schultz, the company established a large network of stores which has influenced coffee culture in Seattle , the U.S., and internationally. Following large-scale distribution deals, Starbucks became the largest coffee-house chain in the world. Schultz took the company public in 1992 and used a $ 271 million valuation to double their store count in
2592-588: A supporter of the free market . In 2020 he described the treatment of business and capitalism by American society as "vilification". During the COVID-19 pandemic (COVID-19), advocated for fiscal stimulus to small businesses harmed during the crisis. Schultz described the Coronavirus Aid, Relief, and Economic Security Act as insufficient, and criticized the Act's Paycheck Protection Program (PPP) for being
2688-581: A temporary solution. On April 21, he called for the federal government to institute a " Marshall Plan " for small business, in the form of federally-backed loans. Schultz said he supported "comprehensive tax reform" in January 2019. He opposed Alexandria Ocasio-Cortez 's proposal to raise the marginal tax rate on income over $ 10 million to 70%, saying it was "punitive" and contrary to the American Dream . He also opposed Donald Trump's passage of
2784-461: A union buster when that is not true." During the hearing Sen. Bernie Sanders asked Schultz whether he would follow the ruling of NLRB administrative law judge Michael Rosas. Rosas had found that Starbucks had engaged in “egregious and widespread misconduct” in dealing with the unionizing efforts of its employees in Buffalo . As a result of these findings he ruled that the company must reinstate
2880-474: A week to qualify for free tuition through ASU's online courses. It was reported in 2018 that Schultz had taken a one-dollar annual salary sometime in the past couple of years. Schultz again stepped down as CEO in December 2016, assuming the position of executive chairman. From 2008 to 2017, Schultz oversaw nearly $ 100 billion added to the company's market capitalization . From the 1980s to his retirement,
2976-532: Is a supporter of neoliberal institutionalism and international cooperation. In line with this, Schultz advocates for a U.S.-centered unipolar world where countries work with America to ensure stability and peace. At the start of the 2012 United States presidential election Schultz's name was floated as a potential Democratic candidate. After he instructed Starbucks employees in Washington to write "come together" on all cups to encourage bipartisanship in
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3072-477: The Seattle Post-Intelligencer , the wholesale business was more significant. From 2005 to 2007, Howard Behar was president of Starbucks North America. In September 2006, rival Diedrich Coffee announced that it would sell most of its company-owned retail stores to Starbucks, including most locations of Oregon-based Coffee People, escalating regional coffee wars . Starbucks converted
3168-406: The 2020 United States presidential election . There was additional encouragement from a draft movement called Ready for Schultz. He hired Steve Schmidt and Bill Burton , two political consultants, to assess his candidacy. On January 27, 2019, he stated in an interview with 60 Minutes that he was exploring a run for president as an independent candidate , and that he considered running as
3264-457: The CEOs of Costco , and Whole Foods lobbied to have this provision removed from the bill, and a provision making it easier for unions to secure their first bargaining agreement. The Employee Free Choice Act never made it into law. Schultz's overall vision on unions, and their place at Starbucks were published in a 2012 edition of his memoir entitled "Pour Your Heart Into It: How Starbucks Built
3360-548: The COVID-19 pandemic , Starbucks closed all the café-only stores in the United States for two weeks. During that time, only drive-thru and delivery-only services were to function. According to the company representatives, all workers were to be paid for the next 30 days whether they went to work or stayed home. COVID-19 lockdowns caused Starbucks to suffer a general 10% sales decrease, and a 50% decrease in China where quarantine measures were especially strict. In May 2020,
3456-511: The Democratic Party platform. Schultz supports free trade , a balanced budget , comprehensive tax reform, gun control, and same-sex marriage. Schultz hosted a fundraiser in his Seattle home for John Edwards during the 2008 presidential election cycle , eventually donating to the campaigns of Hillary Clinton and Barack Obama. Since 2012, Schultz's public statements have led to press speculation that he would run for President of
3552-556: The Free Library of Philadelphia , his books are known to be a blend of "part memoir and part manifesto of corporate social responsibility". At the start of 2019, Schultz released an online class that covered the business leadership topics discussed in his books on the MasterClass platform. Organizational consultant Warren Bennis has influenced Schultz's writing. His first book, Pour Your Heart Into It: How Starbucks Built
3648-500: The Microsoft's Azure -based blockchain service. Two men were arrested in a Philadelphia Starbucks location after a manager claimed the two were trespassing on April 12, 2018. The arrests led to protests due to their apparently racially-motivated nature. CEO Kevin Johnson later apologized for the incident, and the company declined to press charges. During the company's second quarter earnings call on April 26, Johnson indicated that
3744-491: The Milanese newspaper of the same name. The store offered ice cream in addition to coffee, had little seating, and played opera music in the background. Two years later, the original Starbucks management team decided to focus on Peet's Coffee & Tea and sold its Starbucks retail unit to Schultz and Il Giornale for US$ 3.8 million. Schultz rebranded Il Giornale with the Starbucks name, and expanded its reach across
3840-491: The Pacific Northwest and Midwest , and the company was roasting more than 2,000,000 pounds (907,185 kg) of coffee annually. In June 1992, at the time of its initial public offering , Starbucks had 140 outlets, with revenue of US$ 73.5 million, up from US$ 1.3 million in 1987. The company's market value was US$ 271 million by this time. The 12% portion of the company that was sold raised around US$ 25 million for
3936-714: The San Francisco Bay Area , under the Circadia restaurant brand. At the same time, Starbucks converted its Seattle Circadia restaurant into a Café Starbucks. In 1999, Starbucks acquired Pasqua Coffee—a San Francisco -based retail coffee chain that had almost 60 locations in San Francisco, Los Angeles, and New York City. In April 2003, Starbucks acquired Seattle's Best Coffee and Torrefazione Italia from AFC Enterprises for US$ 72 million. The deal only gained 150 stores for Starbucks, but according to
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4032-541: The Tax Cuts and Jobs Act of 2017 , which lowered high-income and corporate taxes . During a CNN town hall, he stated that he wanted the marginal tax rate for the highest-earning citizens to be increased from 37% to 39%. Schultz is against lowering taxes for large corporations, favoring tax cuts for middle-market and small businesses. Starbucks took an institutional stance in favor of same-sex marriage in 2013 (two years prior to US Federal recognition). In response to
4128-704: The United States withdrawal from the Paris Agreement . To finance a green economy , he has advocated for a combination of taxing oil and gas as well as harnessing wind energy . Schultz has openly criticized the 2018 Green New Deal for being economically unrealistic. In December 2012 Schultz penned an open letter to various newspapers about an upcoming initiative at Starbucks involving partisan gridlock in Washington. On December 27, Starbucks employees in Washington were asked to write "come together" on all cups distributed, to encourage bipartisanship in
4224-515: The "Tweet-a-Coffee" promotion in October 2013. On this occasion, the promotion also involved Twitter and customers were able to purchase a US$ 5 gift card for a friend by entering both "@tweetacoffee" and the friend's handle in a tweet . Research firm Keyhole monitored the progress of the campaign; a December 2013 media article reported that 27,000 people had participated and US$ 180,000 of purchases had been made to date. In January 2014, as part of
4320-497: The Diedrich Coffee and Coffee People locations to Starbucks. The Coffee People locations at Portland International Airport were excluded from the sale. In early 2008, Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers. Other users could comment and vote on suggestions. Journalist Jack Schofield noted that "My Starbucks seems to be all sweetness and light at
4416-515: The Starbucks mobile app for prepayment by the customer before arrival to pick up the order. The layout of some stores will also be modified with a separate counter for picking up mobile orders. In December 2020, Starbucks announced that it is planning to increase its store count to about 55,000 by 2030, up from roughly 33,000. Bloomberg reported in July 2022 that the company was, through investment bank Houlihan Lokey , exploring selling its stores in
4512-528: The Storm to Force 10 Hoops, LLC, an ownership group of four Seattle women, which kept the team in Seattle. On July 2, 2008, the city of Seattle reached a settlement with the new ownership group and the SuperSonics moved to Oklahoma City and became the Thunder for the 2008–09 NBA season . The sale to the out-of-state owners considerably damaged Schultz's popularity in Seattle. In a local newspaper poll, Schultz
4608-577: The U.S. military's role in the Iraq War and War in Afghanistan , and their transitions back into civilian life . To market the book he expanded tuition support for veterans families. Over a radio interview in March 2019, when asked if he would be an effective commander-in-chief , Schultz responded: "I probably have spent more time in the last decade certainly than anyone running for president with
4704-729: The United Kingdom. In August 2022, after months of suspension due to the Russian invasion of Ukraine , Starbucks sold all its stores in Russia to the Russian rapper Timati . The stores were rebranded as " Stars Coffee ", and are very similar to the former stores. Starbucks said it had no comment on the new owner. On October 1, 2022, Howard Schultz stepped down as CEO, with Laxman Narasimhan becoming Starbucks's next CEO. On March 23, 2023, Narasimhan told employees that he would work
4800-421: The United States. This type of market strategy received mixed reception from both customers and competitors. The firm's relations with independent coffeehouse chains were strained, while some owners credited Starbucks with educating customers on coffee. Schultz did not believe in franchising , and made a point of having Starbucks retain ownership of every domestic outlet. Schultz's positioning of Starbucks as
4896-462: The United States. In both the 2008 and 2012 United States presidential election he endorsed the presidential candidacy of Barack Obama. Schultz donated to Barack Obama's 2008 presidential campaign twice, once on June 30, 2007, for $ 2,300, and again on October 24, 2008, for $ 2,300. He endorsed Democratic candidate Hillary Clinton in the 2016 United States presidential election . Howard Schultz has been taking anti-union actions at Starbucks since
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#17327763393804992-515: The amount of fair trade coffee Starbucks bought. By the end of 2009, 65% of all coffee product was fair trade and by 2015, nearly all of it was. Starbucks signed an agreement with the government of Ethiopia in 2007 to ensure increased pay to farmers. Schultz committed to an agreement that all 747 stores in Britain would be certified fair trade by year-end. The agreement made Starbucks the largest buyer of fair trade coffee. Schultz claims to be
5088-530: The book were donated to the Starbucks Foundation, the firm's main charity. His third book, For Love of Country: What Our Veterans Can Teach Us About Citizenship, Heroism, and Sacrifice , co-written with Rajiv Chandrasekaran , was published in 2014. The New York Times Book Review calling it "well-written" and "formidable." It was later added to the Times ' 2014 Winter Reading List. In writing
5184-521: The city of Seattle to provide public funding to build a new arena in the Greater Seattle area to replace KeyArena . At the time of the team's sale, it was speculated that the new owners would move the team to their city some time after the 2006–2007 NBA season. Schultz filed a lawsuit against Bennett – in April 2008 – to rescind the July 2006 sale based on what Schultz claimed was fraud and intentional misrepresentation. However, Schultz dropped
5280-585: The city's mayor and city council. Washington governor Jay Inslee , who was running against Schultz in the 2020 election, criticized him for his absence in state politics. Congressman George Nethercutt , a moderate Republican, opined that Eastern Washington "may like what they hear and vote for [Schultz]" more than the Western region . Schultz has been described as a foreign policy " liberal hawk ", favoring socially liberal politics domestically and aggressive, interventionist policies abroad. Generally, he
5376-640: The closing of 150 locations in 2019; three times the number the corporation typically closes in a single year. The closings were to happen in urban areas that already have dense clusters of stores. In July 2019, Starbucks announced that it would no longer be selling newspapers in its cafés. It was also announced that kiosks for grab-and-go snacks and bags of whole-bean coffee would be removed from stores beginning in September 2019. In November 2019, Starbucks opened its largest store ever on Michigan Avenue , Chicago, with 200 employees. On March 20, 2020, due to
5472-609: The coffeehouse's support of the Second Amendment . Later in September, as CEO, Schultz asked customers to no longer bring guns into its stores. Schultz has supported a pathway to citizenship for illegal immigrants who had entered the U.S. as children. He called for greater border security, but vocally opposed President Donald Trump's proposal of a border wall . In 2017, Schultz got into a highly publicized argument with President Trump after he instructed Starbucks to disregard an executive order barring Syrian refugees into
5568-598: The company asked for reduced rent from landlords due to the decrease in sales. In June 2020, during the COVID-19 pandemic in the United States , the company announced that it would close 400 of its locations in the US/Canada region over the subsequent 18 months as it moves from the coffee house concept to what it calls "convenience-led" formats with drive-through and curbside pickup . Starbucks announced that it planned to open 300 stores that will primarily focus on carryout and pickup orders. The new stores will work with
5664-542: The company had not seen a drop in sales as a result of the event and subsequent coverage. The company reiterated its guidance for full year earnings, and beat consensus expectations of 1.8 percent same-store sales growth, with 2 percent growth. Johnson announced that the company would close some 8000 locations on May 29 for a seminar about racial bias in order to prevent future events similar to those that occurred in Philadelphia. On June 19, 2018, Starbucks announced
5760-461: The company to plan one to two store openings a day in mainland China. Back in the firm's U.S. market, various coffee wars with McDonalds and Dunkin' lowered Starbucks' marketshare and the stock price fell 75% from 2006 to 2008. While revenue was growing broadly, it was largely dependent on new store openings creating unsustainable (or inorganic ) growth. On January 7, 2008, after an eight-year hiatus, Schultz returned as CEO of Starbucks during
5856-404: The company, which enabled it to double its number of stores over the next two years. By September 1992, Starbucks' share price had risen by 70%. In 1994, Starbucks acquired The Coffee Connection , gaining the rights to use, make, market, and sell the " Frappuccino " beverage. The beverage was introduced under the Starbucks name in 1995. In 1999, Starbucks experimented by opening eateries in
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#17327763393805952-633: The country. Within 24 hours of the executive order, Schultz wrote to his employees that recent immigrants and refugees, particularly those with strong ties to the U.S. military, would be fast-tracked to employment. President Trump then called on his supporters to boycott Starbucks. In 2015, Schultz founded Onward Veterans, a private foundation to help post-9/11 military veterans transition to civilian life. In 2014, Schultz authored his first non-business book, For Love of Country: What Our Veterans Can Teach Us About Citizenship, Heroism, and Sacrifice , co-written with Rajiv Chandrasekaran . The book discussed
6048-653: The development in which he was raised as "the country club of projects." Schultz spent his time after school at the Boys Club of New York. He is active in the Boys’ Club of New York's Alumni. Schultz graduated from Canarsie High School in 1971. He attended Northern Michigan University (NMU) from 1971 to 1975, where he was a member of Tau Kappa Epsilon Fraternity, graduating with a B.A. in communications . He had played football, expecting an athletic scholarship but an injury caused him to quit. In 1976, he became
6144-438: The employees they had fired, and Schultz must either read to his employees a letter informing them of their rights or be present for a meeting in which workers are informed of their rights. Schultz responded that he would not be following this ruling as he believed that Starbucks had not broken the law. As chief executive of Starbucks, Schultz has commented on the impact climate change has on coffee production . He has opposed
6240-562: The federal government on December 26, press speculation intensified. However, Schultz "batted down" these reports days later and confirmed that he was not running for political office. He continued to publicly bemoan the political climate at the time, saying he was "not optimistic about the leadership" of the U.S. on national television. Papers continued to question the finality of his decision with New York Magazine writing "We look forward to your 2016 campaign". In late September and early August 2015, press speculation began to surface about
6336-449: The federal government. During his exploratory 2020 presidential campaign, Schultz explained to multiple media outlets that, if elected, he wished to exclusively legislate with bipartisan support. This stance includes the appointment and confirmations of U.S. Supreme Court justices. Schultz is averse to debt and, politically, is a deficit hawk . During his 2019 exploratory bid for the presidency, Schultz framed his candidacy as that of
6432-498: The firm's fair trade and ethical source policies for their coffee bean supply-chain in Africa and other coffee-producing countries . In the succeeding two years, he doubled their annual purchase of fair trade coffee, up to, by some estimates, 40 million pounds. Schultz arranged the appointment of the coffeehouse's first chief technology officer . At this time, Schultz was earning a total compensation of $ 9.7 million, which included
6528-448: The first U.S. company to offer part-time workers , particularly baristas, healthcare. Schultz is against Medicare for All . He has vocally criticized Republican-led efforts to repeal the ACA as uncooperative. Schultz supports gun control and universal background checks . In July 2013, Starbucks customers brought in their weapons and guns into local stores to show appreciation for
6624-805: The following month. Nick Wailes, an expert in strategic management of the University of Sydney , said that "Starbucks failed to truly understand Australia's café culture." In January 2009, Starbucks announced the closure of an additional 300 underperforming stores and the elimination of 7,000 positions. CEO Howard Schultz also announced that he had received board approval to reduce his salary. Altogether, from February 2008 to January 2009, Starbucks terminated an estimated 18,400 U.S. jobs and began closing 977 stores worldwide. In August 2009, Ahold announced closures and rebranding for 43 of its licensed store Starbucks kiosks for their US-based Stop & Shop and Giant supermarkets. In 2012, Starbucks had annual Frappuccino sales of over US$ 2 billion. In August 2012,
6720-609: The height of the 2008 financial crisis . He succeeded Jim Donald who took over from Smith in 2005. The coffeehouse was increasingly criticized for employee work conditions and their internal tipping policies during this time; in March 2009, he and the board approved a $ 100 million settlement in back tips in a barista-led class action lawsuit in California. He led a mass-firing of executives, closed down hundreds of stores, and temporarily closed all U.S. locations to retrain employees in making espresso. Schultz redoubled and enforced
6816-576: The high cost of espresso machines, the relative paucity of expertise for maintenance and repair of the machines in America, and Americans' lack of familiarity with the drink, they decided not to deploy Schultz's idea further and he stepped down from Starbucks to start his own business. Schultz left Starbucks in 1985 to open a store of his own. He needed $ 400,000 to start his business. Schultz visited over 500 espresso bars in Milan and, with him assuming most of
6912-561: The largest Starbucks in the US opened at the University of Alabama's Ferguson Centre. On June 25, 2013, Starbucks began to post calorie counts on menus for drinks and pastries in all of its U.S. stores. In July 2013, more than 10% of in-store purchases were made on customers' mobile devices via the Starbucks app . The company once again utilized the mobile platform when it launched
7008-565: The late 1980s. When unions were able to form at the company, they disbanded soon afterward, due to corporate reaction to their formation. In 2009, a bill known as the Employee Free Choice Act was being proposed in Congress. It would allow unions to form by simply gathering a majority of signatures in the workplace, what is known as a "card check", obviating the need to have secret ballot union-elections. Schultz, along with
7104-605: The lawsuit in August 2008. When Bennett purchased the SuperSonics and its sister franchise in the WNBA, the Seattle Storm, for $ 350 million, he agreed to a stipulation that he would make a "good-faith best effort" for one year to keep both teams in Seattle. The sincerity of the good-faith effort was widely disputed by the way Bennett acted and by direct quotes from his partner Aubrey McClendon . On January 8, 2008, Bennett sold
7200-462: The letters "st" were powerful, leading the founders to create a list of words beginning with "st", hoping to find a brand name. They chose "Starbo", a mining town in the Cascade Range and from there, the group remembered "Starbuck", the name of the chief mate in the book Moby-Dick . Bowker said, " Moby-Dick didn't have anything to do with Starbucks directly; it was only coincidental that
7296-502: The local minimum wage to $ 15, which at the time was the highest in the nation. The ordinance passed. From 2005 to 2019, he reportedly voted in 11 of 38 municipal elections. His voting record in Seattle has been described by The Seattle Times as a "pattern of ignoring many local elections over the decades." The paper reported in 2020 that while Schultz is heavily involved in the state's political debates, he often "doesn't show up to vote" in various municipal elections including that of
7392-455: The locality of the store. Depending on the country, most locations provide free Wi-Fi Internet access. The company has been subject to multiple controversies related to its business practices. Conversely, its franchise has commanded substantial brand loyalty , market share, and company value . Starbucks originally opened in Seattle, Washington, on March 30, 1971. By selling high-quality coffee beans and equipments related, Starbucks became
7488-487: The military." His comments were criticized by Pete Buttigieg and Tulsi Gabbard , both of whom served in the military, for being tone deaf. Schultz later apologized for his remarks. Schultz's tentative 2020 presidential candidacy was endorsed by former U.S. Army General Peter W. Chiarelli . In 2012, Schultz had Starbucks express support for Washington state 's Referendum 74 , which legalized same-sex marriage in that state. Schultz opposed Seattle's ordinance to raise
7584-536: The moment, which I don't think is possible without quite a lot of censorship." In March 2008, Starbucks acquired Coffee Equipment Company , which was the manufacturer of the Clover Brewing System. It began testing the "fresh-pressed" coffee system at several Starbucks locations in Seattle, California, New York, and Boston. In July 2008, during the Great Recession , Starbucks announced it
7680-412: The new position of chief global strategist to help the company expand internationally. He was succeeded by Orin Smith , who worked with Schultz as his chief financial officer during the 1990s. After coordinating the first store opening in China in January 1999, Schultz took the following year to develop a customer base for coffee in the region. Throughout the late-2000s and early-2010s, Schultz directed
7776-785: The original owners of Starbucks, led by Jerry Baldwin , purchased Peet's Coffee . By 1986, the company was operating six stores in Seattle and had begun to sell espresso coffee. In 1987, the original owners sold the Starbucks chain to their former director of marketing Howard Schultz , who rebranded his Il Giornale coffee outlets as Starbucks and began to expand the company. Also in 1987, Starbucks opened its first locations outside of Seattle, in Waterfront Station in Vancouver , British Columbia, and in Chicago , Illinois. By 1989, there were 46 Starbucks stores located across
7872-566: The position. Howard D. Schultz was born on July 19, 1953, to Ashkenazi Jewish parents, Fred and Elaine Schultz, in Brooklyn , New York. His father was a truck driver while his mother was a receptionist. Howard has two siblings. Schultz grew up in the Canarsie public housing projects. According to Schultz, his family was poor, although childhood contemporaries recount a middle-class upbringing, with one of his contemporaries referring to
7968-690: The remainder are licensed. It is currently the world's largest coffeehouse chain . The company is ranked 120th on the Fortune 500 and 303rd on the Forbes Global 2000 , as of 2022. The rise of the second wave of coffee culture is generally attributed to Starbucks, which introduced a wider variety of coffee experiences. Starbucks serves hot and cold drinks, whole-bean coffee, micro-ground instant coffee , espresso , caffe latte , full and loose-leaf teas , juices, Frappuccino beverages, pastries , and snacks. Some offerings are seasonal or specific to
8064-440: The rise of Starbucks. Kirkus Reviews praised the book's "immense detail" but critiqued Schultz's coverage of "outside criticisms of his performance". The Seattle Times was critical, saying the book could only "appeal to business types but probably not to the average latte drinker". Fast Company placed Onward within the top five books that "[predicted] the future of workplace leadership" in 2014. All sale proceeds from
8160-485: The risk associated with introducing espresso to the American market, Starbucks invested $ 150,000 in the new venture, with Baldwin receiving a place on its board and Bowker offering unofficial assistance. Another $ 100,000 investment came from local doctor Ron Margolis. Of the 242 investors Schultz approached, 217 rejected his idea. By 1986, he had raised the money he needed to open the first store, Il Giornale, named after
8256-434: The role of CEO in an interim position following Johnson departing the position in March 2022. On March 20, 2023, two weeks before he was projected to turn the leadership of the company over to incoming CEO Laxman Narasimhan , Schultz stepped down as interim CEO of Starbucks. Schultz appeared before the United States Senate Committee on Health, Education, Labor and Pensions on March 29, 2023. In January 2001, Schultz led
8352-479: The sound seemed to make sense . " The first Starbucks store was located in Seattle at 2000 Western Avenue from 1971 to 1976. They later moved the café to 1912 Pike Place. During this time, Starbucks stores sold just coffee beans and not drinks. In its first two years of operation, Starbucks purchased green coffee beans from Peet's Coffee & Tea . In 1973, Alfred Peet stopped supplying Starbucks and helped train their new Roastmaster, Jim Reynolds. In 1984,
8448-680: The team by not showing up to the first day of training camp in 2002. In February 2006, he stated that the SuperSonics needed $ 200 million to renovate KeyArena or build a new arena for the team, and if the Washington State Legislature would not approve this, he would look to sell or move the team. On July 18, 2006, Schultz sold the team to Clay Bennett , chairman of the Professional Basketball Club LLC , an Oklahoma City ownership group, for $ 350 million, after having failed to convince
8544-561: The town hall Schultz said that Starbucks was "under assault from unionization", "outside forces", and that Starbucks did not need an intermediary between management, and labor. During these union organizing campaigns by Starbucks employees, the corporation has been firing employees who have engaged in unionizing. One employee who had been working to organize Starbucks workers in Arizona was fired just one hour after Schultz had finished speaking at his town hall. These terminations took place despite
8640-501: Was closing 600 underperforming company-owned stores and cutting U.S. expansion plans amid growing economic uncertainty. On July 29, 2008, Starbucks also cut almost 1,000 non-retail jobs as part of its bid to re-energize the brand and boost its profit. Of the new cuts, 550 of the positions were layoffs and the rest were unfilled jobs. Additionally in July 2008, Starbucks announced that it would close 61 of its 84 stores in Australia in
8736-571: Was considering the use of blockchain technology to connect coffee drinkers with coffee farmers who could eventually be able to take advantage of new financial opportunities. The pilot program was planned to start with farmers in Costa Rica , Colombia, and Rwanda in order to develop a new way to track the bean-to-cup journey. In 2019, at the Microsoft Build conference , the coffee company formally announced its "bean to cup" program using
8832-503: Was converted into a coffee shop serving espresso -based drinks under the ownership of Howard Schultz , who was chief executive officer from 1986 to 2000 and led the aggressive expansion of the franchise across the West Coast of the United States . As of November 2022, the company had 35,711 stores in 80 countries, 15,873 of which were located in the United States. Of Starbucks' U.S.-based stores, over 8,900 are company-operated, while
8928-472: Was critical of Schultz's hard-lined "obsessive" position against sovereign debt: "America is not a company." Furman stated in February 2020, "many successful companies are much more leveraged than the United States." Throughout the 2018 start and continuation of the U.S. trade war against China , Schultz has been critical of its motivations and handling, and has called for a reduction of trade tariffs and other import-export taxes. In 2008, Schultz doubled
9024-495: Was hired at Starbucks as the director of retail operations and marketing. Schultz was exposed to coffee in Italy on a buying trip to Milan, Italy in 1983. On his return, he worked to persuade company owners Jerry Baldwin and Gordon Bowker to offer traditional espresso beverages in addition to the whole bean coffee, leaf teas, and spices. After a successful pilot of the cafe concept, Baldwin and Bowker were intrigued but, noting
9120-475: Was judged "most responsible" for the team leaving the city. Ten years later, in 2019, Schultz accepted full responsibility for the sale. "Selling the Sonics as I did is one of the biggest regrets of my professional life. I should have been willing to lose money until a local buyer emerged. I am forever sorry." Schultz has written four books, three of which incorporate business memoir-style narratives. According to
9216-528: Was positioned to be a "worthy party back-up to [Hillary] Clinton ." Schultz wrote a New York Times op-ed on August 6, 2015, denying this, stating, "Despite the encouragement of others, I have no intention of entering the presidential fray. I'm not done serving Starbucks." Newspapers such as The Atlantic , billed Schultz as the "liberal Donald Trump" due to his comparable career as a businessman and wealth. After Schultz stepped down from Starbucks in 2018, political commentators speculated whether he would run in
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