Skip to content
MarketScale
‹ Back to IndustriesRetail

How Howard Schultz Saw More Than Coffee in Starbucks

Word of mouth can either make or break a business. Whether it is a person, location or company, it is all about the experience, not just for the consumer, but for the employees as well. In 1987, a former employee of Starbucks, Howard Schultz, jumped at the chance to purchase the company and create a…

This story was produced through MarketScale. See how Retail teams put it to work with Sales Enablement.

Share
How Howard Schultz Saw More Than Coffee in Starbucks

Get featured

Want to get featured in MarketScale Retail?

Create a free MarketScale workspace and get your company's expertise featured across our Retail coverage. No credit card, no demo required.

Start free

Word of mouth can either make or break a business. Whether it is a person, location or company, it is all about the experience, not just for the consumer, but for the employees as well. In 1987, a former employee of Starbucks, Howard Schultz, jumped at the chance to purchase the company and create a third place between work and home, Starbucks Corporation.

Starbucks was founded in 1971 by Jerry Baldwin, Gordon Bowker and Zev Siegl. When Schultz took over the company, he wanted to place an importance on the communities within the business and on those that the business serves.

“I saw something. Not only the romance of coffee, but … a sense of community. And the connection that people had to coffee—the place and one another,” Schultz was quoted in Biography.com as saying.

Last year, Starbucks revenue reached its highest level ever at 24.72 billion dollars. It seems for any business to prosper, a unified sense of responsibility, purpose and loyalty is required from all associates involved. Starbucks understood this in 1988, when it started to offer full health care benefits for its employees and domestic partners.

“Benefits included free drinks while working, one free food item per shift, health and dental benefits, free schooling through Arizona State University online, and one free pound of coffee a week,” Samantha Lee, 27, a former shift supervisor explained.

In 2012 a friend of Lee’s had expressed how much they loved working for the company. There was a genuine enthusiasm for the corporation. This prompted Lee to apply for a barista position in Idaho, where she would be employed by Starbucks for the next five years.

“There were great benefits and opportunities to move up, and it was just overall a great company,” Lee added.

When an employee has a stake in the business, their dedication and effort will exceed that of an employee who is treated like a replaceable cog. In 1991, Starbucks was the first privately owned company in the U.S. to offer “Bean Stock” a stock option program that would turn full and part-time employees into partners.

Howard Behar, former president of North America operations and Starbucks International, explained to Forbes what he and the company stood for,

“I saw it was all about the people,” Behar said. “We’re not in the coffee business serving people, we’re in the people business serving coffee.”

Lee recalled the amount of time, detail and effort the company invested in their training for all employees, no matter what their job descriptions or positions were.

“There are very clear roles while you are working so that everyone knows what their job for the day is, and that helps so that things don’t slip between the cracks,” Lee said. “They still do training sessions as a group even for tenured employees so that everyone can revisit their roles and be on the same page.”

According to the Society for Human Resource Management (SHRM), a key link to customer satisfaction, company reputation and overall stakeholder value is to create employee engagement. This will result in employees becoming more invested in either the product or service they provide, which the customer will notice.

In an article published by Medium, a quote from Schultz explained how and why the company thrives,

“Starbucks will do between $23 and $25 billion in revenue this year, but our average sale is $5. So just think about that, we’re in the pennies and small dollar business, so in order to do that much revenue, we’re totally dependent on human behavior…We’re seeing it through a different lens, not only in terms of the coffee innovation and store design, but mostly what can we do from a people perspective?”

For the latest news, videos, and podcasts in the Retail Industry, be sure to subscribe to our industry publication.

Follow us on social media for the latest updates in B2B!

Twitter – @RetailMKSL

Facebook – facebook.com/marketscale

LinkedIn – linkedin.com/company/marketscale

Your experts belong here

Every story in MarketScale Retail starts with a company putting its merchandising leads, store operations teams, and category managers on the record. Buyers are already reading this topic. The only question is whose experts they find.

Get your team featuredSee how it works15 minutes, straight to a calendar.

Follow Retail Insights

Get new expert content in your inbox.

Retail: are you visible to AI?

Before they reach out, Retail buyers ask AI engines which vendors to trust. See how AI describes your company today, and where competitors show up instead.

Free workspace

You just read one Retail expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your merchandising leads, store operations teams, and category managers into the articles, video, and social content Retail buyers are searching for. Create a free workspace and see it with your own people. No credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What you get, free

Your own MarketScale Studio workspace
One video edit a month, on us
AI writing, editing, and publishing tools
In-platform coaching to learn the system

More Retail Insights

Conversational commerce, retail media, and a 0.2% June sales print are rewriting the enterprise retail playbook

Conversational commerce, retail media, and a 0.2% June sales print are rewriting the enterprise retail playbook

Enterprise retail is being reshaped by factors such as AI chat shopping, the expansion of retail media, and recent fluctuations in sales data. Retail operators are responding to these changes with strategic adjustments to their playbooks. The need for immediate action is underscored by current market trends.

  • 01AI chat shopping is transforming how customers interact with retail platforms.
  • 02Retail media is experiencing significant growth, influencing marketing strategies.
  • 03A soft June sales figure of 0.2% is prompting retailers to rethink their strategies.

Aug 6, 2026

Retailers restructure digital operations as ecommerce becomes the baseline, not the edge

Retailers restructure digital operations as ecommerce becomes the baseline, not the edge

Retailers are restructuring their digital operations as e-commerce transitions from being an edge case to a fundamental aspect of their business strategies. Companies like Albertsons are centralizing merchandising efforts and Tractor Supply is expanding its digital presence despite economic challenges. Recent data from Forbes highlights the significant stakes involved in this digital evolution for the retail sector.

  • 01E-commerce is becoming a fundamental component of retail operations rather than a supplementary option.
  • 02Albertsons is centralizing its merchandising operations to better integrate with digital strategies.
  • 03Tractor Supply continues to grow its digital operations despite facing economic challenges.

Aug 5, 2026

Sizzle Clip - Victoria's Secret

Sizzle Clip - Victoria's Secret

Melissa Gonzalez, a retail strategist, discusses the transformation and innovation in retail marketing. Emphasizing the role of in-store experiences, the conversation revolves around modern retail trends and strategies. The podcast features insights on how brands can stay competitive and capture consumer attention.

  • 01Innovative in-store experiences are crucial for modern retail success.
  • 02Retailers need to focus on creating dynamic environments to attract consumers.
  • 03Staying competitive requires adaptive retail strategies.

Aug 5, 2026

Explore More Retail Insights

Read more expert perspectives from across Retail.

Browse Retail Hub

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Retail and beyond.

Book a 15-minute demo

Or call us. No forms required. We pick up. 214-945-2512