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Tuesday 05 November 2024
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Howard Schultz’s Stormy Crusades: The Starbucks Boss Opens Up

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by George Anders*
What does Starbucks chief executive Howard Schultz keep in his pockets? Two keys stand out. One unlocks the most lavish Starbucks store in the world: the 15,000-square-foot Roastery.

Situated in Seattleā€™s Capitol Hill neighborhood, it combines an upscale cafe with whirring conveyor belts that ferry packages of freshly roasted coffee before admiring customers. Let Nike have Niketown; Schultz has created a Willy Wonka-style celebration of coffee.

The other key reveals something deeper. It opens the shabby little store on the Seattle waterfront where Starbucks got its start. Itā€™s always 1971 there, with the same rough-hewn bins and counters that defined the brand in the days of the Vietnam War.

Nobody has ever modernized the place. ā€œI go there at 4:15 a.m. sometimes, just by myself,ā€ the 62-year-old Schultz tells me. ā€œItā€™s the right place whenever I need centering.ā€

Centering? The last we checked, the willingness of billionaire CEOs to recenter themselves was hovering around zero. But thatā€™s Schultz: always the underdog, always blending the personal with the profitable.

Since taking charge of Starbucks in the 1980s, he has turned a regional coffee company into one of the worldā€™s top brands. Sales topped $19 billion in 2015, thanks to Starbucksā€™ ability to provide food and coffee along with a feel-good environment where friends meet, students do their homework and romances come of age.

By delivering what he calls ā€œperformance through the lens of humanity,ā€ Schultz has amassed a fortune of nearly $3 billion. Yet in any sustained conversation, he keeps going back to when he was a nobody.

ā€œIā€™m still this kid from Brooklyn who wanted to fight his way out,ā€ Schultz says. He grew up in the 1960s in subsidized housing, steeped in the anxieties of a father who suffered workplace injuries and couldnā€™t hold a job. ā€œI didnā€™t go to an Ivy League school,ā€ Schultz reminds me. ā€œI didnā€™t go to business school.ā€

Instead of resenting those early deprivations, he treasures them. Schultz has discovered that Americaā€“and, in fact, the whole worldā€“loves an up-from-hardship story. His candor about his beginnings in the gritty Canarsie section helps him strike a rapport with everyone from other chief executives to young black and Latino adults trying to find their first jobs. ā€œEven though I donā€™t have the same color of skin,ā€ Schultz explains, ā€œI was one of those kids. I could have today been one of those kids.ā€

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