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

Amazon puts Prime delivery on merchants' own sites at no extra fee

Amazon puts Prime delivery on merchants' own sites at no extra fee

U.S. merchants using Amazon's Multichannel Fulfillment can now offer Prime delivery on their own websites at no cost beyond standard fees. Shoppers never log in to Amazon, and merchants keep their checkout, payments and returns. A separate program can reduce fulfillment fees by 15% to 25% for the first six months, according to PYMNTS.

  • 01The Prime badge now costs an MCF merchant nothing beyond the fulfillment fee it already pays, and the checkout page stays the merchant's own.

Sep 27, 2026

Open questions in agentic commerce extend beyond the AI model

Agentic commerce raises questions beyond an agent’s ability to compare prices: what an agent is permitted to do, who is responsible when an agent-initiated purchase goes wrong, and how machine-initiated transactions move safely across merchants, banks and payment networks. Mastercard's Sabrina Tharani frames the shift as a new interface for commerce rather than a separate channel.

  • 01Agentic commerce now turns on three questions the AI can't answer for itself: what the agent may do, who is responsible when it errs, and how its transaction moves between merchant, bank and network.

Sep 26, 2026

Grocers matching store prices on Instacart grew 10 points faster, Instacart says

Grocers matching store prices on Instacart grew 10 points faster, Instacart says

Instacart says it named five grocers as "among" this year’s no-markup adopters, including Grocery Outlet. Using its internal data through Q2 2026, Instacart reports no-markup retailers grew 10 percentage points faster than those charging a markup. Participating grocers also get placement in a dedicated in-app "no markups" tab.

  • 01On Instacart, matching store prices earns a yellow banner and placement in a filtered "no markups" tab; Instacart’s internal data through Q2 2026 shows no-markup retailers grew 10 percentage points faster than those charging a markup.
  • 02The 10-point gap compares grocers that chose parity with grocers that didn't, so it can't separate the effect of pricing from the kind of retailer that opts in first. The sharper question is how retailers with similar baskets fared before and after they switched.
  • 03Parity covers item prices only. Service fees still apply, so the app price-to-shelf-tag comparison evens out while convenience charges remain their own line on the receipt.

Sep 26, 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