Pour Your Heart Into It

Pour Your Heart Into It Plot Summary

Introduction

Howard Schultz's journey from the housing projects of Brooklyn to creating one of the world's most recognizable brands represents the quintessential American dream realized through vision, determination, and unwavering principles. As a young man witnessing his father struggle through a series of low-paying jobs without benefits or dignity, Schultz developed a profound belief that business could be a vehicle for social change. This early experience shaped his revolutionary approach to business leadership—one that placed people at the center of the enterprise and refused to sacrifice values for profit. What makes Schultz's story particularly compelling is how he transformed not just a company but an entire industry and cultural experience. Before Starbucks, Americans were accustomed to drinking mediocre coffee at home or in diners. Schultz introduced a third place between work and home—a community gathering spot where quality coffee became the centerpiece of a larger experience. Through his journey, we discover powerful lessons about entrepreneurial vision, values-based leadership, and the delicate balance between growth and maintaining a company's soul. His story demonstrates that commercial success and social responsibility aren't competing goals but complementary forces that, when aligned, can create extraordinary value for all stakeholders.

Chapter 1: From Brooklyn Projects to Entrepreneurial Dreams

Howard Schultz's earliest memories were formed in the Bayview Housing Projects of Brooklyn, where his family lived in a small apartment with limited means. His father, Fred Schultz, cycled through a series of blue-collar jobs—truck driver, factory worker, cab driver—none providing adequate income or benefits for the family. The defining moment of Howard's childhood came when his father broke his ankle while working as a diaper delivery truck driver. With no health insurance, worker's compensation, or savings, the family faced financial disaster. This experience left an indelible mark on young Howard, who witnessed firsthand the vulnerability of working-class families and the indignity his father suffered. Despite these challenges, Howard's mother, Elaine, instilled in him the belief that he could transcend their circumstances through education and determination. A natural athlete with leadership abilities, Howard excelled in sports, particularly basketball, which provided structure and purpose during his formative years. His athletic prowess ultimately earned him a football scholarship to Northern Michigan University—his ticket out of Brooklyn and the first step toward a different future. As the first person in his family to attend college, Howard embraced the opportunity despite the cultural shock of moving from urban Brooklyn to the remote Upper Peninsula of Michigan. After graduating with a communications degree in 1975, Howard joined Xerox Corporation, where he learned valuable sales skills and developed professional confidence. Within three years, he had advanced to a position at Hammarplast, a Swedish housewares company selling European kitchen equipment and design products. It was at Hammarplast, as general manager of the U.S. operation, that Howard first encountered Starbucks. Noticing that a small Seattle retailer was ordering an unusual number of drip coffeemakers, Howard's curiosity was piqued. In 1981, he flew to Seattle to investigate and walked into the original Starbucks store at Pike Place Market. What Howard discovered wasn't just a coffee shop but a passionate group of people dedicated to sharing their love of fine coffee with customers. The founders—Jerry Baldwin, Zev Siegl, and Gordon Bowker—had created a business that celebrated the romance of coffee, its rich history, and the artistry of roasting. Though Starbucks then had only four stores and sold only whole beans (no coffee drinks), Howard was captivated by their commitment to quality and education. The experience awakened something in him—a passion for coffee and a glimpse of what this small company could become. A year later, Howard convinced the founders to hire him as director of marketing and operations, taking a significant pay cut and moving his family across the country to join Starbucks out of pure passion for its potential. In these early years, Howard immersed himself in coffee knowledge, learning about varieties, growing regions, roasting techniques, and brewing methods. He traveled to coffee-producing countries, developing relationships with farmers and gaining appreciation for the agricultural foundations of the business. This period of apprenticeship laid the groundwork for his future vision, providing both technical expertise and emotional connection to the product that would become the centerpiece of his entrepreneurial journey. Though he couldn't articulate it yet, Howard was developing the passion and knowledge that would eventually transform not just Starbucks but America's relationship with coffee.

Chapter 2: The Italian Epiphany: Discovering Coffee's True Potential

In 1983, Howard Schultz traveled to Milan, Italy, for an international housewares show. What began as a routine business trip became the transformative moment that would forever change his vision for Starbucks and ultimately America's coffee culture. Walking the streets of Milan, Howard was struck by the ubiquitous espresso bars that served as community gathering places. These weren't just venues for coffee consumption; they were vibrant social institutions where baristas knew customers by name and casual conversations flowed as freely as the espresso. "In each neighborhood, I found the coffee bars had their own unique character, but all shared the common thread of community and human connection," Howard would later recall. The revelation hit Howard with stunning clarity as he observed the theatrical element of Italian coffee culture. Baristas operated with practiced grace, pulling shots of espresso and creating foamy cappuccinos while engaging in animated conversations with regular customers. In Milan alone, he counted more than 1,500 espresso bars—one on nearly every corner—yet all thriving because they offered something beyond mere coffee: they provided a daily ritual, a moment of pleasure in busy lives. Howard realized that Starbucks had been missing the essence of coffee's potential. While the Seattle company excelled at selling high-quality beans, it had overlooked the powerful social experience that coffee could facilitate. Upon returning to Seattle, Howard passionately pitched his vision to Starbucks' owners. He wanted to transform their retail model by serving espresso drinks in the stores, creating an experience around coffee rather than just selling beans. He presented photographs, brought back samples of Italian coffee drinks, and even demonstrated espresso machines. But the founders were reluctant to change their business model. They saw themselves as coffee merchants, not restaurateurs, and feared that serving beverages would dilute their core mission of educating customers about whole-bean coffee. This fundamental disagreement about Starbucks' future created tension between Howard and the owners. After a year of unsuccessfully advocating for his vision, Howard made the difficult decision to leave Starbucks in 1985. Rather than abandoning his dream, he resolved to create his own company that would embody the Italian coffee bar experience. With a business plan in hand, Howard approached investors to fund his new venture, which he named Il Giornale after a Milanese newspaper. The fundraising process tested his resolve—he pitched to 242 potential investors and received 217 rejections. Many dismissed his concept, arguing that Americans would never pay premium prices for coffee drinks or embrace European café culture. Each rejection was painful, but Howard persisted with unwavering determination. In April 1986, the first Il Giornale coffee bar opened in downtown Seattle. The 700-square-foot store featured standing bars in the Italian style, opera music, and baristas in bow ties and crisp white shirts. While some elements proved too authentically Italian for American tastes (customers wanted chairs and less opera), the core concept—serving handcrafted espresso drinks in a warm, welcoming environment—resonated strongly. Lines formed out the door, and the store quickly became profitable, validating Howard's vision. When Starbucks' owners decided to sell the company in 1987 to focus on Peet's Coffee, which they had acquired earlier, Howard seized the opportunity. Raising $3.8 million from investors who now believed in his concept, he purchased Starbucks and merged it with Il Giornale, retaining the Starbucks name but implementing his vision of coffee bars that would serve as community gathering places.

Chapter 3: Raising Capital and Acquiring Starbucks Against All Odds

When Howard Schultz decided to leave Starbucks to pursue his vision of Italian-style coffee bars, he faced the daunting challenge of raising capital with nothing but a business plan and passionate conviction. The fundraising process became a grueling test of his resilience and persuasive abilities. "I must have heard 'no' a thousand times," Howard recalled. "But I considered each rejection a postponement, not a denial." Of the 242 potential investors he approached, 217 declined to participate. Many couldn't grasp his vision or thought Americans wouldn't pay premium prices for coffee drinks. Some questioned why he would leave a secure position at Starbucks to pursue such a risky venture. The breakthrough came when Howard met Arnie Prentice, a respected Seattle businessman who became his first investor and helped introduce him to others. Through sheer persistence, Howard eventually secured $1.7 million from 30 investors, including some of Seattle's most prominent business leaders. What ultimately convinced these investors wasn't financial projections but Howard's authenticity and passion. As one early investor explained, "I wasn't investing in coffee. I was investing in Howard Schultz." This pattern would repeat throughout Howard's career—his sincerity and integrity inspiring others to believe in his vision even when the business case seemed uncertain. After successfully launching Il Giornale and proving his concept with three profitable stores, Howard faced an even greater challenge in 1987 when Starbucks' owners decided to sell the company. He needed to raise $3.8 million quickly to purchase Starbucks' six stores, roasting plant, and brand name. Despite having just exhausted his network raising funds for Il Giornale, Howard embarked on another fundraising marathon. This time, with Il Giornale's proven success, he found investors more receptive. Many of his original backers increased their investments, and new ones came aboard. By August 1987, Howard had secured the funding and acquired Starbucks, merging it with Il Giornale under the Starbucks name. The acquisition represented a pivotal moment in Howard's entrepreneurial journey. He now had not only retail stores but also a roasting facility and an established brand with a reputation for quality. Yet the challenges were just beginning. The newly expanded company faced significant financial pressures, with investors expecting returns on their capital. Howard made several counterintuitive decisions that defied conventional business wisdom. When competitors were expanding through franchising, he insisted on company-owned stores to maintain quality control. When experts advised focusing on profitable markets like Seattle, he pushed into challenging territories like Chicago to prove his concept could work nationally. Perhaps most remarkably, Howard deliberately led Starbucks to unprofitability for its first three years under his ownership. He invested heavily in infrastructure, systems, and talent far beyond what the company needed at the time, building the foundation for the massive growth he envisioned. This approach frustrated some board members who questioned the mounting losses, but Howard stood firm: "We have to invest ahead of the growth curve." He hired executives with experience managing companies much larger than Starbucks, built a state-of-the-art roasting plant, and implemented sophisticated information systems. These investments strained the company's finances but positioned Starbucks for explosive growth in the 1990s. Throughout these challenges, Howard maintained an almost irrational optimism that sustained him during the darkest moments. When a prominent investor attempted to wrest control of the company from him, Howard refused to compromise his vision or values. "This is my moment," he would tell himself during difficult times. "If I don't seize the opportunity, if I don't step out of my comfort zone and risk it all, my moment will pass." This combination of bold vision and relentless determination enabled Howard to transform a small Seattle coffee retailer into a global phenomenon that would forever change how the world experiences coffee.

Chapter 4: Creating a People-First Company Culture

Howard Schultz's commitment to creating a people-first company wasn't just idealistic thinking—it stemmed directly from his childhood experiences. Growing up, he had watched his father struggle through a series of low-wage jobs without benefits, dignity, or security. When his father broke his ankle and couldn't work, the family had no safety net. This memory haunted Howard, who vowed that if he ever built a company, he would create one that treated people with respect and provided the benefits his father never received. "My father never had a chance to work for a company that respected him," Howard often said. "I wanted to build the kind of company that my father would have been proud to work for." This philosophy manifested most dramatically in 1988 when Howard introduced comprehensive health benefits for all Starbucks employees, including part-time workers who logged just 20 hours per week. At a time when most retailers offered minimal benefits even to full-time staff, this decision was revolutionary. The board of directors initially opposed the idea, questioning how Howard could justify such an expense when the company was still losing money. Howard's response was unwavering: "This is not an expense. This is an investment in our people." He argued that treating employees well would reduce turnover, increase productivity, and create passionate advocates for the brand. The health plan became a cornerstone of Starbucks' culture and a powerful competitive advantage in attracting and retaining talent. In 1991, Howard introduced an even more innovative idea: Bean Stock, a stock option plan for every employee, from executives to baristas. This unprecedented program turned employees into partners with a stake in the company's success. When Starbucks went public in 1992, these options became increasingly valuable, allowing many partners to pay for college, buy homes, or achieve other personal dreams. The psychological impact was equally significant—employees began thinking like owners, finding ways to cut costs and improve service because they directly benefited from the company's success. As one barista explained, "When I'm steaming milk, I'm not just making a latte. I'm building my future." Howard also established unusual channels for employee feedback, including a Mission Review system where any partner could report decisions that seemed contrary to the company's values. Every comment received a response within two weeks from relevant management. This accountability mechanism ensured the company's mission statement wasn't just wall decoration but a living document that guided decision-making at all levels. Howard instituted quarterly Open Forums where employees could voice concerns directly to leadership, and he regularly visited stores to connect with partners and hear their ideas. These practices fostered a culture of transparency and mutual respect that became a competitive advantage. The results of these people-first policies were dramatic. Employee turnover at Starbucks averaged 60-65% when the industry norm exceeded 150%. More importantly, Starbucks partners developed a genuine passion for the company and its products that they naturally conveyed to customers. When warehouse workers voluntarily decertified their union in 1992, they explained: "You included us in running this business. Whenever we complained, you fixed the problem. You trusted us, and now we trust you." This moment validated Howard's belief that treating employees with dignity created a foundation for sustainable success. For Howard, these weren't just good business practices but moral imperatives. He often said that the most vulnerable moment in his life was watching his injured father unable to work, with no income or benefits. By creating a company that valued dignity, respect, and shared success, Howard wasn't just building a coffee empire—he was ensuring that no Starbucks partner would ever face the insecurity and indignity his father had experienced. This commitment to people became the foundation of Starbucks' culture and a key driver of its remarkable growth.

Chapter 5: Balancing Rapid Growth with Soul and Values

By 1990, Starbucks had established a strong presence in Seattle, but Howard Schultz's vision extended far beyond the Pacific Northwest. He believed Starbucks could become a national brand while maintaining its soul—its commitment to quality coffee and human connection. This vision required balancing rapid expansion with preserving the company's core values, a challenge that would test Howard's leadership throughout the decade. "Growth is not a strategy," Howard often reminded his team. "It's a tactic. The question is: growth to what end?" The first major test came with Starbucks' expansion to Chicago in 1987. Unlike Seattle, Chicago had no established specialty coffee culture, and many locals were skeptical of paying premium prices for coffee. The initial stores struggled, losing money for three years. Many advisors urged Howard to retreat, but he remained steadfast. "Sometimes you have to believe when no one else does," he told his team. This persistence paid off when Chicago eventually became one of Starbucks' strongest markets, proving that specialty coffee could succeed beyond the coffee-savvy West Coast. The Chicago experience taught Howard valuable lessons about adapting to new markets while maintaining core standards—lessons that would guide future expansion. As Starbucks prepared to expand nationally, Howard recognized that maintaining quality and culture would require exceptional leadership. He made the crucial decision to hire executives with greater experience than himself, including Howard Behar and Orin Smith. Behar, with his retail expertise, emphasized that Starbucks was "not in the coffee business serving people, but in the people business serving coffee." Smith brought financial discipline and operational excellence. Together with Schultz, they formed the leadership trio known as "H2O," representing vision, soul, and fiscal responsibility. This leadership team provided the complementary skills needed to manage rapid growth while preserving what made Starbucks special. To ensure consistent quality as the company grew, Starbucks made several unconventional decisions that prioritized long-term value over short-term profits. Unlike most chains, Starbucks refused to franchise, maintaining company ownership of all stores to control quality and preserve culture. They invested heavily in training, with each new barista receiving 24 hours of education about coffee knowledge, brewing techniques, and customer service. They built their own roasting plants and distribution systems to maintain control over the entire coffee supply chain. These decisions were costly but essential to preserving the Starbucks experience as the company expanded across the country. Perhaps most importantly, Howard worked to institutionalize Starbucks' values as the company grew. In 1990, he gathered 20 key leaders for a retreat where they articulated Starbucks' mission and guiding principles. This Mission Statement became the company's moral compass, helping maintain cultural consistency across hundreds of stores. Howard also implemented systems like Mission Review, which allowed partners to report violations of company values, and quarterly Open Forums where employees could voice concerns directly to leadership. These mechanisms helped preserve Starbucks' soul even as the company grew exponentially. The tension between growth and soul reached a critical point in 1992 when Starbucks went public. Wall Street's emphasis on quarterly earnings created new pressures that could have compromised the company's values. Howard navigated this challenge by being transparent with investors about Starbucks' commitment to its partners and long-term vision. He refused to sacrifice employee benefits or coffee quality for short-term profits, even when analysts questioned these "expensive" commitments. By maintaining this delicate balance between growth and values, Starbucks expanded from 11 stores in 1987 to over 1,000 by 1996, while preserving the soul that made the company special.

Chapter 6: Building a Global Brand One Cup at a Time

Unlike most national brands that rely on mass advertising, Starbucks built its reputation through an entirely different approach—one person, one cup, one store at a time. Howard Schultz believed that authentic brands aren't created in marketing departments but through genuine experiences that forge emotional connections with customers. "Mass advertising can help build brands, but authenticity is what makes them last," Howard often said. This philosophy guided Starbucks' unique approach to brand-building as it expanded across America and eventually around the world. At the heart of this strategy was an unwavering focus on product quality. Howard was fanatical about sourcing the finest arabica beans, roasting them to perfection, and ensuring proper preparation in every store. When coffee prices skyrocketed after a Brazilian frost in 1994, many companies compromised on quality to maintain profits. Starbucks refused, absorbing millions in additional costs rather than using inferior beans. This commitment to authenticity became the foundation of customer trust. Similarly, when customers requested nonfat milk for lattes, Howard initially resisted, believing it compromised taste. But after witnessing customers leave when told nonfat wasn't available, he reconsidered. The company tested nonfat milk in several stores, and within six months, all locations offered it, demonstrating Howard's ability to balance tradition with customer needs. Equally important was Starbucks' investment in its people. Howard recognized that baristas were the face of the brand, the human connection between Starbucks and its customers. While other retailers cut training to save costs, Starbucks provided extensive education about coffee, brewing techniques, and customer service. Partners were encouraged to share their passion for coffee, creating memorable experiences that customers couldn't get elsewhere. This human element differentiated Starbucks from supermarket coffee brands that relied on packaging and advertising rather than personal interaction. As Howard explained, "We're not in the coffee business serving people; we're in the people business serving coffee." The store environment itself became another crucial brand element. Every sensory detail was carefully considered—the aroma of freshly ground coffee, the sound of beans being scooped and milk being steamed, the warm lighting and comfortable seating. Howard insisted that "everything matters" in creating an inviting Third Place between work and home. Store designs evolved to reflect local architecture and culture while maintaining consistent brand elements. This attention to detail made each visit memorable, encouraging customers to return and share their experiences with others. The power of this approach became evident when customers began referring to "my Starbucks"—indicating a personal connection to a specific store and its partners. As Starbucks expanded into new markets, Howard developed a sophisticated approach to introducing the brand. Rather than blanketing cities with advertising, Starbucks identified local influencers, invited mail-order customers to store openings, held community events, and sponsored local causes. In each new city, they created flagship stores in high-visibility locations and designed artwork celebrating local culture. These efforts generated authentic word-of-mouth buzz that advertising couldn't buy. Howard believed that "the best way to build a brand is one person at a time," and this patient approach allowed Starbucks to develop deep roots in each community it entered. By 1995, as competitors proliferated and the specialty coffee category grew more crowded, Howard recognized that Starbucks needed to more clearly articulate its brand story. He hired Scott Bedbury, who had helped build Nike's iconic brand, to elevate Starbucks' marketing. Through extensive research, they discovered that different customer segments valued different aspects of the Starbucks experience—some sought a quick morning pick-me-up, others a place to meet friends or work quietly. This insight led to more diverse store formats and messaging that spoke to these varied needs while maintaining core brand values. The ultimate validation of this person-by-person brand-building approach came when Starbucks expanded internationally. In 1996, when the first Tokyo store opened, Japanese customers lined up despite the sweltering heat, many proudly carrying Starbucks cups down the street—a cultural shift in a country where eating or drinking while walking was traditionally avoided. Without spending a yen on advertising, Starbucks had created a powerful emotional connection that transcended cultural boundaries.

Chapter 7: Navigating Challenges While Staying True to Principles

In June 1994, Howard Schultz faced what would become the most severe crisis in Starbucks' history. A devastating frost had hit Brazil's coffee-growing regions, sending global coffee prices soaring. Though Starbucks didn't purchase Brazilian coffee, the impact rippled through the entire market. Within days, the commodity price for green coffee beans jumped from $0.80 to $1.80 per pound, eventually reaching $2.74—more than triple what Starbucks had budgeted for the year. The timing couldn't have been worse. Schultz had just begun his first real vacation in years, renting a beach house in the Hamptons with his family. That morning, a phone call from Seattle shattered his plans. Hearing the gravity in his executives' voices, Schultz knew his vacation was over. He flew back to Seattle the next day to face a crisis that threatened the company's financial stability. The leadership team faced an agonizing dilemma: Should they raise prices immediately, as the major coffee companies were doing? Should they buy more coffee at current high prices to protect against further increases, or wait for prices to fall? Most critically, should they compromise on coffee quality to reduce costs? These decisions would test the company's values and Howard's leadership. Unlike many competitors who immediately raised prices to reflect replacement costs, Starbucks initially absorbed the higher costs, not wanting to unfairly burden customers. When they eventually implemented a price increase, it was modest—about 10% on whole beans and just 5-10 cents on beverages—covering only a portion of their increased costs. This decision prioritized customer relationships over short-term profits. The most difficult decision came when they needed to purchase Colombian coffee at nearly triple the normal price. After intense debate, they decided to buy at the high price rather than risk even higher costs later. As it turned out, they purchased near the market peak, leaving Starbucks with expensive inventory that would impact profitability for two years. Yet there was never any finger-pointing—the team recognized they had made the best decision possible with the information available. Most significantly, Starbucks never wavered on quality. While it would have been easy to substitute cheaper beans—a change most customers wouldn't have noticed—such a compromise would have violated the company's core values. "The memory of sacrificing quality for profit would have been fixed in the minds of Starbucks people forever," Howard reflected. "It would have been an impossible price to pay." Another significant challenge emerged in 1995 when Starbucks experienced its first serious competition from specialty coffee chains like Caribou Coffee and Peet's, along with imitators that copied Starbucks' store design and menu. Howard recognized that maintaining Starbucks' leadership position required continuous innovation while staying true to core principles. Under his guidance, the company responded not by attacking competitors but by elevating the customer experience. They introduced the Frappuccino—a blended ice beverage that became an instant hit, generating $52 million in its first year. They expanded food offerings, developed seasonal promotions like holiday beverages, and created the Starbucks Card, which evolved into one of the most successful stored-value card programs in retail history. Perhaps the most challenging aspect of Starbucks' growth was maintaining cultural consistency across an expanding enterprise. As the company grew to thousands of stores and tens of thousands of employees, Howard worried about preserving the passion and connection that had defined the early years. He addressed this challenge by investing heavily in leadership development, creating immersive experiences that connected partners to coffee's journey from farm to cup, and regularly communicating the company's mission and values. When store managers complained about bureaucracy interfering with customer service, Howard implemented a "Getting Back to Our Roots" initiative that simplified procedures and refocused the organization on the customer experience. Throughout these challenges, Howard demonstrated that principled leadership doesn't mean avoiding difficult decisions but making them within a consistent moral framework. When coffee prices doubled again in 1997, Starbucks was better prepared to respond based on lessons from the earlier crisis. When the company faced criticism about its global expansion, Howard articulated how Starbucks' presence benefited local communities through job creation and ethical sourcing practices. By navigating these challenges with integrity, Howard proved that staying true to principles isn't just morally right but strategically sound—building trust with customers, partners, and communities that sustained Starbucks through difficult times and positioned it for continued growth.

Summary

Howard Schultz's journey from the Brooklyn housing projects to building one of the world's most recognized brands exemplifies how vision, values, and tenacity can transform not just a business but an entire industry. His greatest achievement wasn't merely creating thousands of coffee shops but reimagining what a company could be—one that balances profit with human dignity, that views employees as partners rather than expenses, and that creates community in an increasingly fragmented society. By insisting that Starbucks could succeed financially while treating people with respect, providing comprehensive benefits, sharing ownership through stock options, and maintaining uncompromising product quality, Schultz challenged the prevailing business orthodoxy of his era. The enduring lesson of Schultz's story is that authentic leadership requires both unwavering principles and adaptability. Throughout Starbucks' growth, Schultz demonstrated remarkable clarity about which values were non-negotiable—quality, dignity, community—while remaining flexible about how to express those values in changing circumstances. This balance allowed Starbucks to evolve from a small Seattle coffee retailer into a global phenomenon without losing its soul. For aspiring entrepreneurs and business leaders, Schultz offers a powerful example of how to build an enterprise that creates value for all stakeholders—customers, employees, shareholders, and communities. His journey reminds us that the most sustainable businesses aren't those that maximize short-term profits but those that pursue purpose alongside prosperity, recognizing that when people feel valued and inspired, extraordinary results follow naturally.

About Author

Loading...

Howard Schultz

Schultz is an author and businessman. He was born on July 19th of 1953. He is mostly known for owning Starbucks; he is also the CEO and chairman of that company. He graduated Northern Michigan University with a bachelor's degree in Communication. Schultz authored the book Pour Your Heart Into It How Starbucks Built a Company One Cup at a Time with Dori Jones Yang in 1997. His second book Onward How Starbucks Fought for Its Life Without Losing Its Soul with Joanne Gordon, was published in 2011.

Read more