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Howard Schultz on Milan, Starbucks and returning: interview summary
Starbucks (with Howard Schultz)
- Schultz's 1983 trip to Milan inspired the Starbucks coffeehouse idea.
- He started Il Giornale, then raised money to buy Starbucks.
- By the end of 1987 the company had 11 stores and 100 employees.
- Selling beans in Costco raised brand awareness and nearby store sales.
- He returned as CEO in 2008 and closed underperforming stores.
What did Howard Schultz discover in Milan?
In 1983 he went to a housewares trade show in Milan and walked into Italian espresso bars. He saw coffee as a daily ritual and a place to gather. Back home, coffee had been declining in America for decades, and he believed he could bring that espresso bar experience to the US.
Actionable
- Visit a place that does your craft better and take notes.
- Find one partner that can put your product in front of new customers.
- Ask what your customers love most and protect it.
- If growth hides problems, slow down and fix them.
Lessons
- Travel can spark ideas.
- Partnerships build brands.
- Treating people well pays.
- Growth can hide decline.
Quick answer
Howard Schultz sat down with Acquired for this interview, published Jun 4, 2024. Here's our summary in our own words: a verdict, the answer to the big question, 5 takeaways, Actionable and Lessons tabs, then the stories, frameworks and how to use them.
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Watch on YouTube: Starbucks (with Howard Schultz)
Channel: Acquired. Published Jun 4, 2024. About 196 minutes.
Who is Howard Schultz?
Howard Schultz built Starbucks into a global company and served as its CEO three times.
This is a long episode of the Acquired podcast with Ben Gilbert and David Rosenthal.
Key stories from the interview
- He tells how a performance review pushed him to leave an earlier job.
- He describes the Milan trade show and espresso bars.
- He explains how he raised money to buy Starbucks.
- He talks about returning in 2008 and the app ordering crunch later on.
Frameworks and ideas
- Third place: between home and work.
- Brand flywheel: beans at home, drinks in stores.
- People first: treat staff well.
- Return to roots: fix the core.
In their words (paraphrased)
- The whole thing blew up for me when I went to Italy in 83.
- We created an industry that didn't exist.
- What I'm obsessed with is serving customers.
How to apply this
- Write down the experience you want customers to feel.
- List one partner that could carry your brand into homes or offices.
- Review one fast-growing part of your business for hidden problems.
Read the biography
Want the longer story? Read our Pour Your Heart Into It summary.
A note on this summary
This page reports what was said in the interview, in our own words. Lines under 'In their words' are paraphrased from the transcript, so check the video for exact wording.
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FAQ: questions people ask
What inspired Howard Schultz to build Starbucks?
A 1983 trip to Milan where he saw Italian espresso bars.
When did Howard Schultz return as Starbucks CEO?
In 2008.
Is the Howard Schultz Acquired interview worth watching?
Good value given. Long but rich.
Related guides
- Billionaire and Founder Interview Summaries
- Entrepreneur Biography Summaries: Founder Lessons
- YouTube Video Summaries by Topic and Format
- Every 125x guide
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