The Story of Howard Schultz & Starbucks: From Rejected Idea to Billion Dollar Coffee Empire

Imagine you have a big idea. You're convinced it can change the future of your company. But when you present it, your boss just shakes their head. They say it's too risky. They say, "stick with the old ways, don't bother changing them."

That's what happened to Howard Schultz, a 29-year-old who worked at Starbucks in the early 1980s.

Today, we know Starbucks as the largest coffee chain in the world – with tens of thousands of branches, a company value reaching hundreds of billions of dollars, and a name synonymous with the modern lifestyle.

But when Schultz started working there, Starbucks wasn't what we know it as today.

Starbucks Wasn't What It Is Now

Back then, Starbucks was just a small shop selling coffee beans. There was no espresso. There was no latte. There were no soft sofas or long wooden tables where people could sit for hours. In fact, Starbucks only had 11 branches.

Howard Schultz, who was then serving as the company's marketing director, was living a comfortable life. He had a good salary, a stable job, and a secure future. But something happened that changed everything.

Inspiration from Italy

On a trip to Italy, Schultz saw something that didn’t exist in America at the time – espresso bars. People would gather, chat, swap stories over a cup of coffee. Coffee wasn’t just a drink, it was a reason to connect, to build community.

The idea stuck in his head. Schultz began to envision Starbucks as more than just selling coffee beans in packets, but as an Italian-inspired community center.

First Rejection

Schultz returned to America full of enthusiasm. He presented the proposal to the then owner of Starbucks.

But the answer received was disappointing:


  • "We sell coffee beans. That's all."
  • “Italian-style coffee shops are too risky.”
  • “Don’t change what works.”


Even though Schultz tried to convince them with numbers, profit potential, and market trends, the answer remained the same – no.

Brave Decision: Quitting Work

In 1985, Schultz made a decision that many people considered crazy. He left a stable career. He left a steady salary. He left the company whose future he believed in the most.

Why is he brave? The answer lies in life experience.

Schultz grew up in a public housing area in Brooklyn. His father worked hard, but when he got hurt, there was no insurance, no support, no guarantees. From there, Schultz learned an important lesson:

"A stable job is not necessarily secure. Real security comes when we are willing to take calculated risks."

The Newspaper: Bermula dari Bawah

After leaving Starbucks, Schultz founded his own coffee company – Il Giornale. It was a vision that Starbucks rejected: an Italian-style coffee shop.

He managed to raise funds, open a store, and experiment. Within two years, Il Giornale had grown to six branches. People started to understand the concept. It worked.

And then, a golden opportunity arrived.

Opportunity to Buy Starbucks

In 1987, the original owner of Starbucks wanted to sell the company. Schultz saw this opportunity as an opportunity he couldn't pass up. He raised $3.8 million, bought Starbucks, and merged it with Il Giornale.

Now he owns 17 branches. But more importantly, he is free to build on his vision.

“It Can’t Be Big,” People Say

Many are skeptical. For them, coffee shops are only suitable as local businesses, or at best at the regional level.

But Schultz proved them wrong.

From 17 stores in 1987, Starbucks has grown to over 33,000 stores worldwide today, valued at over $100 billion.

The Biggest Test: The 2008 Crisis

After that huge success, Schultz stepped down as CEO in 2000. He thought it was time for someone else to lead the company.

But by 2008, Starbucks was on the verge of collapse. The stock price fell 75%. Stores were closing. The company was losing money.

The board of directors called Schultz back.

At 54, with his wealth and reputation secured, he could have just retired. But Schultz knew he had to return to save the legacy he had built.

Difficult but Necessary Decisions

Schultz made a drastic decision:


  • Closing 7,100 stores for a full day to retrain all employees.
  • Lost millions of dollars in sales – but did it anyway.
  • Close 600 unprofitable branches.
  • Laying off 12,000 workers.


This decision was painful, but it saved the company. Within four years, Starbucks was back on track, the stock recovered, and the business continued to grow.

What Can We Learn?

The story of Howard Schultz is not just a coffee business success story. It's a story about daring to take risks, rising after rejection, and not being tied down to the "false comfort" of a stable job.

Some big lessons:


  1. Rejection is not the end. Sometimes it's the door to a new beginning.
  2. Stable work does not guarantee security. What seems secure can collapse at any time.
  3. Calculated risk is better than deceptive comfort.
  4. Vision is more important than other people's opinions. If you see a clear opportunity, don't let others extinguish that flame.
  5. Success requires the courage to make difficult decisions. Like Schultz, you may have to close old doors to open new ones.


From Housing Projects to the World Stage

Today, Starbucks operates in 80 countries, serves over 100 million customers a week, and employs hundreds of thousands of people. It all started with a young man who refused to take the word “no.”

Howard Schultz proves that a dot is not a period, but a punctuation mark to start a new sentence.

Questions for You:


  • What idea have you let die just because others rejected it?
  • What vision are you hiding for fear of being considered “crazy”?
  • Is your current stable job truly secure, or does it only make you feel temporarily comfortable?

Conclusion: Stop Playing Safe

Howard Schultz was 29 years old when he left his “safe” job at Starbucks. He started from scratch. And at 54, he returned to save the company he built.

His story teaches us that building something meaningful requires the courage to take risks – not once, but many times.

Maybe the job you hold now is not a guarantee. Maybe the idea that others reject is the key to your future.

Dare to try. Dare to build. Dare to fall and get back up.

Because, as Howard Schultz proves – when you stop playing safe, you start building something truly real.