Skip to content
‹ 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

Free workspace

Turn your Retail expertise into content.

Record interviews, organize footage, and write with AI on a free trial of the MarketScale platform for qualifying companies. No demo required, no credit card.

Try it 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.

Category buyers trust operators, so your merchandising leads shorten the distance between first search and first call.

Book DemoSee how it works15 minutes, straight to a calendar.
B2B Weekly

The week in Retail, and sixteen other industries, every Monday.

Ten stories, one-line takes, five minutes. Free.

Retail: are you visible to AI?

Before they reach out, Retail buyers ask AI engines which vendors to trust. Explore how your experts, customers, and partners can become useful content for buyers and AI search.

Free Trial

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. Start a free trial and see it with your own people. For qualifying companies, no credit card, no demo required.

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

What your free trial includes

Hands-on access to the MarketScale platform
Media requests to your crowd, remote recording, AI writing tools
No demo required. No credit card.
For qualifying companies. Company confirmation required.

More Retail Insights

Ulta is marketing to AI agents and shoppers

Ulta is marketing to AI agents and shoppers

Ulta segments customers by motivations (not just demographics) and uses non-purchase signals like social activity and store behavior to inform personalization and messaging.

  • 01Ulta treats AI agents as new voices it cannot control, similar to how it manages influencer and store associate recommendations, shaping what agents know rather than what they say.
  • 02Ulta uses motivation-based segmentation (beyond demographics) and non-purchase signals like social activity and store visits to inform personalization, with loyalty data as a foundation as it explores what AI agents need.
  • 03Ulta says research shows young consumers who use AI tools and chatbots still crave coming into stores and are more likely to visit, raising the pressure on stores to earn the trip.

Nov 7, 2026

Amazon lets shoppers text Alexa for Shopping to place orders and track prices

Amazon lets shoppers text Alexa for Shopping to place orders and track prices

Amazon is rolling out text-message access to Alexa for Shopping, its AI shopping agent, starting with a small group of U.S. customers by invitation. The agent can search, compare, buy items, track prices, reorder products, and send alerts across text and other Amazon platforms.

  • 01Texting with Alexa for Shopping rolls out to a small group of U.S. customers by invitation, expanding to millions in the coming weeks
  • 02The agent can reorder items, set up weekly grocery orders, watch for price drops, show up to a year of price history, and send new-release alerts
  • 03Requests started over text carry over to the Amazon Shopping app, Amazon.com, and Alexa-enabled devices

Nov 6, 2026

Small retailers rethink shipping fees as holiday shipping costs climb

Small retailers rethink shipping fees as holiday shipping costs climb

The National Retail Federation expects holiday retail sales to rise 4.2% to $1.01 trillion, but higher fuel prices and carrier holiday surcharges are raising shipping costs. Evie Pearl Handmade's owner now pays nearly $6 per package and is considering raising her shipping fees for the first time in six years. A New Jersey clothing founder began charging customers for return shipping this week. Larger retailers with dedicated contracts are better insulated for now, though Amazon reported an 11% rise in third-quarter shipping expenses.

  • 01NRF expects holiday retail sales to rise 4.2% to $1.01 trillion.
  • 02UPS, FedEx and USPS have added holiday surcharges that run through the end of the season.
  • 03One small seller's average label rose from around $4.50 last year to nearly $6 last month, and she is considering raising her shipping fees.

Nov 6, 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 Demo

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