Howard Schultz’s net worth is over $2.2 billion. Indeed, he is the founder of Starbucks and a major institutional shareholder, with 1.88% ownership of the company, valued at over $2.2 billion at the current market value, making him a billionaire.
| Category | Details |
|---|
| Full Name | Howard D. Schultz |
| Date of Birth | July 19, 1953 |
| Place of Birth | Brooklyn, New York, USA |
| Nationality | American |
| Education | Bachelor of Arts in Communications from Northern Michigan University |
| Early Career | Sales and marketing positions at Xerox Corporation, Director of Retail Operations and Marketing at Hammarplast USA |
| Major Companies Founded | Starbucks Corporation (responsible for its expansion and success) |
| Positions | Former Chairman and CEO of Starbucks, Executive Chairman of Starbucks |
| Net Worth | Estimated at over $2 billion (as of 2024) |
| Business Milestones | – 1982: Joined Starbucks as Director of Retail Operations and Marketing when the company had only four stores. – 1985: Founded Il Giornale, a coffee company inspired by Italian espresso bars. – 1987: Acquired Starbucks with investors and merged it with Il Giornale, becoming CEO and Chairman. – 1992: Took Starbucks public with an initial public offering (IPO), raising $271 million. – 1996: Opened the first Starbucks location outside North America in Tokyo, Japan. – 2000: Stepped down as CEO but remained Chairman, focusing on global strategy and innovation. – 2008: Returned as CEO to revitalize Starbucks during the financial crisis, leading to significant restructuring and expansion. – 2018: Announced retirement as Executive Chairman of Starbucks, shifting focus to social impact initiatives. – 2020: Published “From the Ground Up: A Journey to Reimagine the Promise of America,” a book about his life and career. – 2022: Returned as interim CEO to guide the company through a transition period. |
Key Highlights
- Howard Schultz: Howard Schultz is an American businessman who gained prominence as the founder of Starbucks, a global coffeehouse chain known for its premium coffee and café culture.
- Net Worth: As of the latest available information, Howard Schultz’s net worth is estimated to be over $2.2 billion. His wealth primarily stems from his involvement with Starbucks and his substantial ownership of the company’s shares.
- Founder of Starbucks: Howard Schultz is credited with founding Starbucks as we know it today. He joined Starbucks in the early 1980s when it was a small coffee shop chain based in Seattle. Schultz was inspired by the coffee culture he encountered in Italy and saw the potential to turn Starbucks into a premium coffee experience.
- Transformation of Starbucks: Under Schultz’s leadership, Starbucks underwent a transformation from a local coffee chain to a global brand. He emphasized high-quality coffee, the ambiance of Starbucks stores, and the concept of the “third place” – a welcoming space between home and work where people could gather and enjoy coffee.
- Major Institutional Shareholder: Schultz’s net worth is significantly influenced by his ownership stake in Starbucks. He holds a considerable percentage of the company’s shares, amounting to approximately 1.88% of the total ownership. This sizeable stake has contributed to his billionaire status.
- Billionaire Status: Schultz’s ownership of Starbucks shares, combined with the company’s market value, places his net worth well above the billion-dollar mark. His status as a billionaire is attributed to his successful business ventures and contributions to Starbucks’ growth.
- Post-Starbucks Ventures: Beyond Starbucks, Schultz has been involved in various philanthropic and business endeavors. He has been vocal about social issues and has explored political interests. Additionally, Schultz has engaged in projects related to education and job creation.
In summary, Howard Schultz’s journey from founding Starbucks to becoming a major institutional shareholder has led to his billionaire net worth.
His impact on the coffee industry and his role in creating a global coffeehouse phenomenon have solidified his position as a significant figure in the business world.
Starbucks Related Visual Stories
Who Owns Starbucks
Starbucks’ main individual shareholder is Howard Schultz, the founder of Starbucks. Major institutional shareholders comprise BlackRock, with 7.18%, and The Vanguard Group, with 8.6% ownership. Starbucks follows a heavy-chained business model, where the company-operated stores play a critical role in the company’s long-term strategy, compared to McDonald’s heavy-franchised business model, where the long-term plan is to have over 95% of the stores as franchising.
Starbucks Business Model
Starbucks is a retail company that sells beverages (primarily consisting of coffee-related drinks) and food. In 2023, Starbucks had 44% of company-operated stores vs. 56% of licensed stores which might make you think Starbucks is a franchise business, when in reality most of its revenue (nearly 82% in 2023) came from company-operated stores, thus making Starbucks a chain business model.
Starbucks Revenue
Starbucks follows a chain business model strategy, where most of its revenue comes from its owned stores. For instance, in 2023, with nearly $36 billion in revenue, most of the revenue came from owned stores ($29.46 billion) compared to franchised stores ($4.51 billion) and other revenue sources ($2 billion). Yet owned stores have higher operational costs compared to franchised stores.
Starbucks Profits
Starbucks generated $4.12 billion in 2023, compared to $3.28 billion in net earnings in 2022, $4.2 billion in 2021, and $928 million in 2020.
Starbucks Employee
Starbucks had 381,000 employees in 2023, compared to 402,000 employees in 2022, 383,000 in 2021, and 228,000 in 2020.
Starbucks Revenue Per Employee
Starbucks generated over $94K per employee in 2023, compared to $80K revenue per employee in 2022, $75K in 2021, and over $103K in revenue in 2020.
Starbucks Strategy
Starbucks follows a chain business model, building its brand through its owned stores. And its owned stores are also where most of the revenue is generated. In addition, the owned stores are a great asset to keep experimenting with new products while maintaining tight control over the customer experience.
Starbucks Store Strategy
In 2023, Starbucks operated 19,592vs. 18,253 licensed stores. Starbucks leverages primarily company-operated stores to keep tight control over product development, branding, distribution, and customer experience. It also leverages licensed stores for better amplification of brand, revenue, and profits.
Starbucks Revenue Per Store
Starbucks generated over $945K per store in 2023, compared to $900K per store in 2022, $858K in 2021, and $720K in 2020.
Starbucks Revenue By Product
Starbucks made 60% of its revenue, in 2023, from beverages, followed by other revenue, which accounted for 22% of the total revenue (that comprises packaged and single-serve coffees and teas, plus royalty and licensing revenues, beverage-related ingredients, serve ware, and ready-to-drink beverages, among other items.) and food, which accounted for 18% of the total sales in 2023.
Starbucks Mission Statement
Starbucks’s mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”
Starbucks Competitors
Starbucks is a multinational coffee chain headquartered in Seattle, Washington. It was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker in 1971. From a single and very humble bean roasting store in Pike Place Market, the company is now a global giant operating over 37,711 stores around the world. This large global footprint obviously increases the competition for Starbucks in many different markets. The coffee industry itself is also highly competitive, with established players including McDonald’s and Dunkin’ Donuts.
Starbucks Organizational Structure
Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple overlapping chains of command and divisions.
McDonald’s vs. Starbucks
McDonald’s and Starbucks sit in the opposite spectrum of retail business models. Indeed, whereas McDonald’s follows a heavily franchised business model, Starbucks follows a heavy-chained one.
Starbucks Mission Statement
Starbucks highlights its mission as “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”
Starbucks SWOT Analysis
Starbucks is a global consumer brand with direct distribution, recognized brands, and products that make it a viable business. Its reliance on the Americas as a primary operating segment makes it a weakness. At the same time, Starbucks faces risks related to coffee beans price volatility. Yet the company still has global expansion opportunities.
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