Howard Schultz grew up in a Brooklyn housing project, built Il Giornale after leaving Starbucks and then used investor backing to acquire Starbucks and scale it into a global coffeehouse chain. [1][2][3]
From public housing to Starbucks
Schultz grew up in public housing in Brooklyn in a family with little financial security. He later became the first person in his family to graduate from college and entered sales before joining the small Seattle coffee retailer Starbucks in 1982. [1][3]
After a trip to Italy convinced him that American consumers would embrace espresso bars, Schultz left Starbucks and founded Il Giornale in 1985. When Starbucks' founders decided to sell in 1987, he raised $3.8 million from local investors, bought the company's name, roasting plant and stores, and adopted the Starbucks name. [2]
Schultz then expanded Starbucks nationally and internationally while introducing employee benefits and stock ownership programs that became part of the company's identity. The operating scale created under his leadership, rather than inherited wealth, became the foundation of his fortune. [3][1]
The acquisition also shows why Starbucks' later corporate value should not be equated with Schultz's personal wealth. Outside investors supplied capital before the purchase and public shareholders later owned most of the company, so his fortune reflected the value of the equity he retained and accumulated through leadership rather than ownership of the entire enterprise. [2][1]
Sources for background
Sources reviewed Sep 15, 2026.
- Howard Schultz · Forbes · Mar 10, 2026
- Il Giornale · Starbucks
- Iconic Leader and Visionary Entrepreneur Howard Schultz to Bid Farewell to Starbucks after Nearly 40 Years · Starbucks · Jun 4, 2018
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