January 2008

Shaking Up Management

Anemic sales at Starbucks had led to the company’s stock losing half its value in a single year, so Mr. Schultz fired James L. Donald, the chief executive, and installed himself in the top seat. He pledged to bring “laserlike focus” to reining in the chain’s unwieldy collection of locations and products and reviving the company’s original appeal. Within a month, Mr. Schultz said that Starbucks would discontinue breakfast sandwiches, whose scent, he said, “interferes with the coffee aroma in our stores.” He also slashed head count, cut a swath through top management and closed underperforming American stores.

November 2009

The Instant Coffee Test

Starbucks introduced Via Ready Brew, an instant coffee option, which was more affordable than many of the chain’s more complicated concoctions. Many saw the product as an attempt to attract consumers battered by the recession. The chief executive had pushed for a nationwide Via debut in January 2009. But cooler heads prevailed, and skeptical consumers were introduced gradually to the product, with a test run in Seattle and Chicago followed by a nationwide rollout. In 2010, Via pulled in more than $200 million in revenue.

July 2011

Expanding Globally

As Mr. Schultz closed hundreds of American stores, he pushed for aggressive overseas expansion into India, Brazil and elsewhere. Under his watch, Starbucks’s corporate structure was reworked to include three divisions focusing on Asia, the Americas and a broad region that included Europe, the Middle East and Africa. Last year, Mr. Schultz said that China would eventually be a larger market for the company than the United States.

June 2012

Muffins, Tea, Juice

The company began looking beyond Frappuccinos, buying the parent company of bakery brand La Boulange. In November, Starbucks agreed to purchase Teavana, a purveyor of high-end teas. By late 2013, the company had spent $750 million on the two companies as well as on the juice brand Evolution Fresh. “We have a lot going on,” Mr. Schultz said.

September 2013

No Guns, Please

Months after a gunman killed 26 people, most of them young children, at Sandy Hook Elementary School in Newtown, Conn., Starbucks asked customers not to take firearms into and around cafes. Mr. Schultz acknowledged “the emotionally charged nature” of the gun rights issue but said that he was trying to consider customers who “have been jarred and fairly uncomfortable to see guns in our stores.” In an open letter, he wrote that gun rights activists were using the stores “as a political stage” for events that “disingenuously portray Starbucks as a champion of open carry,” which in turn provoked protests from gun control supporters. Under Mr. Schultz, the company has also circulated a petition about a 2013 government shutdown and applauded a 2015 Supreme Court ruling about gay marriage.</s>Howard Schultz, the Starbucks executive who oversaw the Seattle coffeehouse chain’s global expansion, will step down as the company’s executive chairman of the board on June 26, the company confirmed on Monday.

Schultz, 64, spent four decades working at Starbucks. He served as the company’s CEO from 1987 to 2000 and returned to the role for a second stint from 2008 to 2016, when he was replaced by current CEO Kevin Johnson.

“I set out to build a company that my father, a blue-collar worker and World War II veteran, never had a chance to work for,” Schultz wrote in a letter to Starbucks employees. “Together we’ve done that, and so much more, by balancing profitability and social conscience, compassion and rigor, and love and responsibility.”

Starbucks shares slid in after-hours trading on the announcement.

A prominent critic of President Donald Trump, Schultz has long been rumored to have political aspirations. Schultz said earlier this year that the Trump administration “is creating episodic chaos” in the country.

“I want to be truthful with you without creating more speculative headlines,” Schultz told The New York Times on Monday. “For some time now, I have been deeply concerned about our country — the growing division at home and our standing in the world.”

“One of the things I want to do in my next chapter is to figure out if there is a role I can play in giving back,” he added. “I’m not exactly sure what that means yet.”

Starbucks said the company’s stock rose more than 21,000% since its 1992 initial public offering. Myron Ullman, the former chairman and CEO of retail giant J.C. Penney, will replace Schultz as executive chairman of the board.

“There are no words to fully express our gratitude to Howard for the extraordinary company he has built,” Johnson said in a statement. “He’s helped Starbucks earn the respect of millions around the world by always being true to a higher calling, and always being bold in creating a better future. He’s taught all of us that it’s possible to be a very different kind of public company. That must, and will, continue on my watch.”

Starbucks has more than 28,000 store locations across 77 countries. Schultz's departure came weeks after Starbucks revamped its store policies following the arrests of two customers at a Philadelphia store location.</s>Starbucks Corp, the world’s biggest coffee chain, said on Monday Executive Chairman Howard Schultz is stepping down, effective June 26.

Schultz, who has been with Starbucks for nearly four decades, is credited with turning the company into a popular household name and growing it from 11 stores to more than 28,000 in 77 countries.

Last year, Schultz stepped down as chief executive officer to become executive chairman, handing the top job to Kevin Johnson.

Most recently, he was involved in steering the company through an anti-bias training program that was kickstarted after a Philadelphia cafe manager’s call to police resulted in the arrests of two black men who were waiting for a friend.

Starbucks’ board named Myron Ullman, who was previously chairman and CEO of struggling retailer J.C. Penney Co, as its new chair and Mellody Hobson vice chair effective upon Schultz’s retirement.

Schultz will also resign from Starbucks’ board and will be named chairman emeritus, the company said in a statement.</s>SEATTLE — Starbucks Corporation today announced that Howard Schultz is stepping down as executive chairman and member of the Board of Directors and will be honored with the title of chairman emeritus effective June 26, 2018.

Schultz, who reimagined the Italian coffeehouse tradition in America and redefined the role and responsibility of a publicly-held company, announced his departure as executive chairman of Starbucks telling over two million past and present partners (employees), “We did it together, by balancing profitability and social conscience.”

During his four decades as ceo and chairman, Schultz grew Starbucks from 11 stores to more than 28,000 stores in 77 countries, while demonstrating that a business can simultaneously deliver best-in-class financial performance and share success with its people and the communities it serves.

Under Schultz’s leadership, Starbucks has delivered a 21,000% gain in the value of its stock price since its initial public offering in 1992. The company’s growth was fueled by his decisions to provide uncommon benefits for those who work for Starbucks, including comprehensive healthcare, stock ownership and free college tuition, even for those working part-time.

“I set out to build a company that my father, a blue-collar worker and World War II veteran, never had a chance to work for,” Schultz wrote in a letter addressed today to past and present Starbucks partners. “Together we’ve done that, and so much more, by balancing profitability and social conscience, compassion and rigor, and love and responsibility.”

Schultz’s journey began in 1981, when he walked into the first Starbucks store, located in Seattle’s iconic Pike Place Market. The following year, he moved with his wife, Sheri, from New York to assume the role of director of operations and marketing. Schultz’s passion for the highest quality coffee heightened on a business trip to Italy, where he was captivated by the sense of community, romance and theater found in Italian coffee bars. In the years following his return to Seattle, Schultz purchased Starbucks with the support of local investors and dedicated his career to bringing his vision of a modern coffee house to life in America and around the world.

Schultz elevated the concept of Starbucks as the between home and work: a comfortable, welcoming environment that provides uplifting experiences, community and human connection.

Among his many accolades, Schultz has been named as one of The World’s Most Influential People by magazine as well as Business Person of the Year by . Most recently, Schultz has received the Robert F. Kennedy Ripple of Hope Award and has been presented with the Atlantic Council’s Distinguished Business Leadership award and the NAACP LDF (Legal Defense and Education Fund) National Equal Justice award.

This year, Starbucks was named the fifth most admired company in the world by marking the 16th year in a row that the company has appeared on the global list. Starbucks was also named one of the World’s Most Ethical Companies by the Ethisphere Institute for the 12 th consecutive year and was ranked as one of 2018’s Most Innovative Companies by , most notably for its social-impact work.

On April 3, 2017, Schultz transitioned from ceo to executive chairman, shifting his full-time focus to the company’s social impact initiatives as well as innovation and global development of the company’s premium Reserve brand, including Starbucks Reserve Roasteries, Reserve stores and the Company’s partnership with renowned artisanal Italian bakery, Princi. Following his transition off the Starbucks board at the end of June, Schultz will oversee the opening of the Starbucks Reserve Roastery in Milan on Sept. 6 – marking the company’s long-awaited entry into Italy – and the New York Roastery in late October.

Starbucks also announced today that its Board of Directors has appointed Myron E. “Mike” Ullman as its new chair of the Board and Mellody Hobson as vice chair of the Board effective upon Schultz’s retirement. Starbucks world-class, values-based board is comprised of accomplished leaders representing diversity and excellence in global technology, retail, consumer experience and other relevant skill sets.

“There are no words to fully express our gratitude to Howard for the extraordinary company he has built,” said ceo and member of the Board of Directors Kevin Johnson. “He’s helped Starbucks earn the respect of millions around the world by always being true to a higher calling, and always being bold in creating a better future. He’s taught all of us that it’s possible to be a very different kind of public company. That must, and will, continue on my watch.”

In Schultz’s letter to partners, he thanked them for their collective efforts to build a different kind of company. “Because of your creativity, your hard work, and the love that you have poured into the company, Starbucks today is widely embraced and respected. As I prepare to step away, I’d like to humbly remind you not to lose sight of what matters most: your fellow partners and our customers.”

He also expressed deep confidence in the team that will continue to lead the company. “Kevin Johnson is a true servant leader, and he will lead Starbucks as this great company enters its next journey. It’s our duty as leaders to constantly reimagine Starbucks. I am honored to call Kevin my friend and partner. And Starbucks is fortunate to have him. This leadership team is extraordinarily capable. They, too, believe that Starbucks has a responsibility to use our scale for good.”

Schultz is looking forward to spending more time with his family this summer. He is also writing a book about Starbucks social impact work and the efforts to redefine the role and responsibility of a public company in an ever-changing society.

To the more than 330,000 partners who wear the green apron today, and the millions before them, Schultz will forever represent Starbucks mission to inspire and nurture the human spirit one person, one cup and one neighborhood at a time.</s>Howard Schultz to step down as Starbucks executive chairman

After nearly 40 years and an overhaul of the coffee industry as the world knows it, Howard Schultz is stepping down from his post at Starbucks.

Starbucks announced the decision Monday, with Schultz scheduled to bow out from his position on June 26.

Schultz, who transitioned from CEO to executive chairman in April 2017, helped grow Starbucks into the global household name it is today. Schultz's tenure saw Starbucks grow from 11 stores around Seattle to more than 28,000 stores in 77 countries.

The Seattle-based coffee chain also announced that they would be appointing Myron E. Ullman, the former chairman of JCPenney, as its new chair of the board, and Mellody Hobson as vice chair of the board effective upon Schultz's retirement.

According to the New York Times, Schultz outlined his plan to retire to the Starbucks board a year ago – stoking speculation that he plans to make a presidential run for the 2020 elections. Schultz has been vocal about his distaste for President Donald Trump, stating last year that Trump is "a president that is creating episodic chaos every day."

"I want to be truthful with you without creating more speculative headlines," he told The New York Times. "For some time now, I have been deeply concerned about our country — the growing division at home and our standing in the world.

"One of the things I want to do in my next chapter is to figure out if there is a role I can play in giving back."

Schultz declined to say much more on the matter, noting only that he intended to "think about a range of options, and that could include public service," but that he didn't need to run for public office to accomplish that.

Among that range of options, Starbucks says Schultz will have the honorary title of chairman emeritus as of June 26. It says he is writing a book about Starbucks' social impact efforts.

His time with the company dates back to 1981, when he walked into the first Starbucks store in downtown Seattle. The next year, he and his wife moved from New York to assume the role of director of operations and marketing, where he famously changed the chain to be more in line with the coffee bars he encountered in Italy.

The Associated Press contributed to this report.</s>Starbucks says ex-CEO Howard Schultz, who oversaw coffee chain's huge expansion, is stepping down as executive chairman

SEATTLE (AP) — Starbucks says ex-CEO Howard Schultz, who oversaw coffee chain's huge expansion, is stepping down as executive chairman.</s>(AP) – Starbucks Corp. says Howard Schultz is stepping down as executive chairman later this month of the coffee chain he joined more than 30 years ago.

 Schultz, who oversaw the transformation of Starbucks into a global chain with more than 28,000 locations, had left the CEO job at the company last year to focus on innovation and social impact projects.

 The Seattle-based chain says Schultz will have the title of chairman emeritus as of June 26. It says he is writing a book about Starbucks’ social impact efforts.

 Starbucks said Myron E. “Mike” Ullman would be the new chairman of the board upon Schultz’s retirement.</s>Starbucks Corp. says Howard Schultz is stepping down as executive chairman later this month of the coffee chain he joined more than 30 years ago. (Source: Pixabay)

NEW YORK (AP) - Starbucks Corp. says Howard Schultz is stepping down as executive chairman later this month of the coffee chain he joined more than 30 years ago.

Schultz, who oversaw the transformation of Starbucks into a global chain with more than 28,000 locations, had left the CEO job at the company last year to focus on innovation and social impact projects.

The Seattle-based chain says Schultz will have the title of chairman emeritus as of June 26. It says he is writing a book about Starbucks' social impact efforts.

Starbucks said Myron E. "Mike" Ullman would be the new chairman of the board upon Schultz's retirement.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>Howard Schultz, the man who built a few coffee shops into an empire, is leaving Starbucks — stepping down as the company's chairman.</s>Howard Schultz is leaving his job at Starbucks — and says he may consider running for president.

Starbucks announced Monday that Schultz, a former CEO and the most prominent face of the company, will step down later this month as executive chairman.

In an interview with The New York Times, he acknowledged that he may consider a bid for the White House.

“I want to be truthful with you without creating more speculative headlines,” he said. “For some time now, I have been deeply concerned about our country — the growing division at home and our standing in the world.”

Schultz, one of the most politically outspoken corporate leaders in America, has been rumored before as a potential Democratic candidate.

He has spoken frequently about race, and Starbucks has taken progressive stances on social issues — including gay marriage, immigration and President Trump’s travel ban. Last year, the company said it plans to hire 10,000 refugees over five years.

Starbucks has also been a leader in workers’ benefits under Schultz. Since 1988, Starbucks has offered health care to all full-time and part-time employees. In March, the company said it reached gender and race pay equity for all US employees.

Schultz started at Starbucks in 1982 and served as chief executive from 1987 to 2000 and again from 2008 to 2017. He is leaving at a tumultuous moment in Starbucks’ history.

The company drew protests in April after two black men were arrested while they were waiting inside a Philadelphia store. Starbucks closed 8,000 stores for an afternoon last week to teach employees about racial bias.

“We realize that four hours of training is not going to solve racial inequity in America,” Schultz told CNN’s Poppy Harlow last week. But he said, “We need to have the conversation. We need to start.”

Schultz has addressed race before. After the police shooting death of an unarmed black man in Ferguson, Missouri, in 2014, Starbucks asked baristas to write “Race Together” on coffee cups in hopes of starting conversations.

“It’s not going to solve racism, but I do believe it is the right thing to do at this time,” Schultz said at the time.

And in a speech to Starbucks shareholders in 2016, Schultz said he feared that the opportunities that allowed him to achieve his American Dream — he grew up in subsidized housing in Brooklyn — have escaped the grasp of too many people.

“The American Dream can’t be only accessible to people of privilege who are white and live in the right zip code,” he said.

In an email to Starbucks employees obtained by CNNMoney, Schultz did not address a future in politics. He expressed gratitude and encouraged the employees to foster a “sense of community and human connection.”

“I still feel like a kid from Brooklyn who grew up in public housing,” he said. “I am living the American Dream.”
Starbucks executive chairman and former CEO Howard Schultz retires from the company.