How Did Howard Schultz Save Starbucks?

Starbucks is today a globally recognized coffee chain, but it was a household name not so long ago. The company was founded by the efforts of Howard Schultz, who re-shaped the company to what it is today. He envisioned and led the company to become a global giant that started as a Seattle coffee shop. In the article below, the author reveals how Schultz led the company to newer heights and made it a sustainable success.

How Howard Schultz Introduced A New Vision That Changed The Direction Of Starbucks

In 1982, when Howard Schultz joined as director of retail operations and marketing for Starbucks, it was a small company with a few stores that sold coffee beans and equipment. Schultz envisioned selling coffee beans, of course, but also a deeper European-style café experience—Starbucks can make it happen.

Following a visit to Italy and exposure to Italian coffee culture, Schultz suggested that the company venture into providing espresso-based drinks and a coffeehouse experience to the business. The company did not want to do so and Schultz left to start his own coffee business, Il Giornale. In 1987, he purchased Starbucks to fulfill his vision on a larger scale.

Also Check Out Our: Does Jeff Bezos Still Own Amazon?

How Starbucks Expanded Across The Country And The World Under Schultz’s Leadership

While working with Schultz, Starbucks grew at a fast rate. He made sure that each store was of a quality and welcoming kind where customers could unwind and have good coffee. His plan was to open company-owned stores instead of franchises so that he could maintain the brand and customer experience in his hands.

By the 1990s, Starbucks was expanding stores at a pace never previously experienced, both domestically and internationally. Schultz focused on building an inviting environment that invited consumers to stay in the store to mingle and not simply pick up coffee and go. This transformed Starbucks into something more than a coffeehouse; it was a location where individuals would come to work, socialize, and unwind.

How Schultz Focused On Employee Benefits And Customer Service To Strengthen Starbucks

Schultz believed that great service was a byproduct of contented employees. He started providing benefits such as stock options and medical coverage to part-time employees too. This was a breakthrough step for the company in this direction, but it was well worth it with higher employee satisfaction and lower turnover.

His customer experience focus was also solid. Starbucks' staff, or baristas, were taught to interact with customers and welcome them with a smile. It also had a frequent customer reward program that solidified its bond with customers.

Also Check Out Our: What Are Jeff Bezos' Famous Quotes?

How Schultz Helped Starbucks Recover From Financial Challenges And Reinvented The Brand

While profitable, Starbucks was losing its way at the end of the 2000s. Starbucks grew too rapidly and deteriorated in the quality as patrons grew frustrated. Schultz re-entered the helm in 2008 as CEO to address such problems. Schultz shut under-performing locations in the hundreds, altered how the coffee was produced, and reopened the original motivation of providing tremendous coffee and better customer service.

His leadership at this time revitalized Starbucks, and the company soon regained its trajectory for growth. Through embracing digital innovation like mobile ordering and reward programs, Starbucks transitioned to meet evolving consumer trends and solidify its brand loyalty.

Also Check Out Our: Is Jeff Bezos A Good Boss?

How Schultz Strengthened The Starbucks Brand With Sustainability And Social Responsibility

Schultz did not just worry about expansion and customer satisfaction but also about corporate responsibility. Under his leadership, Starbucks committed itself to responsible purchasing practices, environmental protection, and community involvement. All these went a long way in maintaining the brand image and attracting socially conscious customers. Although he is no longer the CEO, his legacy lives on through the sustained success of the company. During his tenure, Starbucks expanded to become a global brand with a good reputation in the coffee business.