Starbucks (with Howard Schultz)
Acquired
2024/06/04
Starbucks (with Howard Schultz)
Starbucks (with Howard Schultz)

Acquired
2024/06/04
In this landmark episode of Acquired, the story of Starbucks takes center stage with its former CEO and driving force, Howard Schultz, joining as a guest cohost. From its humble beginnings as a Seattle coffee bean shop to becoming a global coffeehouse giant, Starbucks’ journey is one of vision, resilience, and transformation. This episode dives deep into the pivotal moments and strategic decisions that shaped the brand, offering a rare behind-the-scenes look at the leadership, innovation, and cultural impact that fueled its rise.
Starbucks began in 1971 as a small Seattle roaster selling only coffee beans, inspired by Peet’s Coffee. Howard Schultz joined in 1982 and, inspired by Italian coffee culture, sought to transform Starbucks into a café experience. After a failed acquisition attempt, he launched Il Giornale before acquiring Starbucks in 1987. Facing financial hurdles, Schultz secured key investors and expanded the brand with a focus on customer experience and employee welfare, including early stock options and benefits for part-time workers. The company went public in 1992 and expanded globally, notably in Japan and China. A near-collapse in 2008 led to Schultz’s return, where he revitalized the brand by refocusing on quality and customer experience. Innovations like the Frappuccino and mobile ordering helped Starbucks scale sustainably while maintaining its core values.
03:03
03:03
Starbucks originally sold only coffee beans using Peet’s coffee.
24:58
24:58
Schultz worked as a barista without pay for nearly two years
30:48
30:48
Bill Gates Senior played a decisive role in facilitating the acquisition of Starbucks by introducing Howard Schultz to Sam Strom.
40:08
40:08
Starbucks achieved over 20% operating profit and high repeat sales
1:01:36
1:01:36
Starbucks extended health benefits to part-time employees and domestic partners in 1988.
1:23:35
1:23:35
Frappuccinos accounted for 7% of Starbucks' revenue by 1997.
1:54:44
1:54:44
Steve Jobs advised firing Starbucks leadership team, which largely happened later.
2:13:15
2:13:15
Starbucks in China grew from 500 stores in 2011 to nearly 7,000 today.
3:03:40
3:03:40
Schultz invested over $2 billion in Starbucks partners to restore operational health