Howard Schultz was a young boy living in a public housing project in Brooklyn. When Schultz was 7, his father (Fred Schultz) broke his ankle while working as a truck driver. Fred had no health insurance and the family was left with no income. Quoting “[my father] never attained fulfillment and dignity from work he found meaningful.”
Howard Schultz - Starbucks CEO
After graduation (thanks to an athletic scholarship), Howard Schultz started working for Xerox as a sales associate, then took a job in Hammarplast, a Swedish housewares business, as a representative for the US market. There, He met Starbucks for the first time. Intrigued by the passion for coffee of the two founders, Schultz eventually joined the team as Director of Marketing.
The original founders of Starbucks
Schultz's career – and Starbucks's fate – changed forever when the company sent him to an international housewares show in Milan. While walking around the city, he encountered several espresso bars where owners knew their customers by name and served them drinks like cappuccinos and cafe lattes. A novelty for the American public.
Back in the US, Schultz strived to persuade his bosses that Starbucks should have been an experience and not just a store. Thus, in 1985 Schultz left Starbucks to start his own coffee company “Il Giornale”, trying to replicate the experience He had in Italy.
It caught on quickly, and in 1987 Il Giornale bought Starbucks.
(Note: the name came from a popular Newspaper published in Milan, Il Giornale)
Note: Largely because of his father's experience, Schultz offered all his employees (including part-time workers) complete healthcare coverage as well as stock options.
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