I told everyone I know about this episode...My God it was an eye opener. So happy for Howard and his wife for continuing to stay the course despite what his father in law said and look today. The dream paid off. Wow 👍🏾
But also respect for all the men for understanding and recognizing that the father was right in his way as a man and a father. I respect these three men for acknowledging that part.
Howard Schultz is the Steve Jobs of coffee. As an Ex-Barista, I luckily worked there when Starbucks was at it's peak before it became a mess with unions, politics, lack of innovation in customer service, all the mess with automation. It was a super fun job at the time all those years ago and I have a lot of respect for Schultz. First company to offer full coverage healthcare on a part time basis and all tuition reimbursement the way they did it. And yes, I did get more than one free drink a day and took so many protein boxes and pastries home that were going to waste. Also I agree with him 💯 on the mobile app. I said the same thing. It ruined the experience for lobby customers so bad because so many customers depended on mobile ordering and then would come through the drive through. It was such a nightmare. Think The Bear scene when the preorder option was left on lol
Thanks for a great interview video. Many takeaways. 1) being flexible to customer’s needs opens the doors to evolution (the cup-naming story), and 2) atmosphere is so ignored in organisations (but visible to a Communications graduate) and 3) the barista-customer intimacy is so important for repeat-customers
Sam Stroum, mentioned in this episode, is the man Mary Gates had talk to her son, Bill, when he was thinking about dropping out of college. And, a bit of Seattle-area trivia, Stroum's former son-in-law owns University Village (an upscale outdoor mall).
My grandfather was a hard-working man who became rich by selling chai (tea) during the India-Pakistan partition in 1945-50s. He migrated from Pakistan to India, moving from Kutchh to Mumbai. He helped so many people throughout his life. This interview reminded me of my grandfather, as I never had the chance to meet him.
This is the first sit-down interview I've seen of you guys!!! It's been two years that I've listened to you guys while driving on Spotify. Thank you for this. Your pod has been inspirational to many like me. I hope to catch up with you guys soon in the States. All the best and thank you!
By far the best 3:15:40 of my life. Thank you for this amazing upload. How did you even manage to get an interview with an icon like Howard? I'd love to meet him one day!
one of the greatest podcasts ive ever seen. as a starbucks partner i now much better understand the company and its ideals. Howards ideas seem to always land and the company seems to go to shit without him
Why did Starbucks work instantly in countries like Japan and the rest of the world? Truth is, America. Everybody outside, wanted to be part of the American culture and Starbucks was a huge representative.
Absolutely so spot on! Most people get wrapped up in the beautiful story telling and forget to see what was happening around… You’ve mentioned a beautiful point here!
True but then why didn’t Dunkin donuts or any other major chain work as well in those markets? It’s easy to say America but much credit to companies like Starbucks, McDonald’s , Coca Cola, subway etc who are not just market leaders but the only representative of their market segments in many of these countries.
My mum recently visited me in Thailand. And she ordered a Starbucks every morning she was here. It was her comfort away from home whilst visited an unfamiliar place. Really interesting to see.
Hey guys, regarding the Starbucks app, I didn't get the second advantage of the economic of the app mentioned around 2:07:55 about not paying VISA. Doesn't Apple take a massive cut for app purchases?
Apple doesn't charge any fee on physical products (Uber, Airbnb, Amazon, Starbucks...). Apple charges a fee on digital goods (movies, eBooks, game coins, etc.). It would be crazy if Apple took 30% of Uber's revenue, for example. However, Apple does charge a fee to payment networks for using Apple Pay.
@@tebe652_ Thanks. As a company who sells digital products, I feel even them taking 30% on digital is crazy. ;) But other question: don't gift cards count as digital products?
I would've voted for Howard, had he run. His humility and gratitude are quite extraordinary. Anyway, my current project was weighing me down emotionally. But then hearing Howard talk so enthusiastically about his fairy-tale-like journey just lifted me up to soldier on. THANK YOU, Howard! THANK YOU Ben and Dave for Acquired!
This is a great podcast - learning at the feet of Mr Howard Schultz & the transperance in what worked and challenges in building the Starbucks business is refreshing & educative! Thank u Acquired!
I didn't expect to listen to (almost) the whole thing at once but this was THAT interesting. Came to youtube to see the comments. Thx for making and sharing this, and thanks to Howard for being so open and for caring about humans and for sharing these (hi)stories
I think it’s fair to say the “third place” concept is completely dead in United States stores. With the popularity of the mobile app and drive thru locations I’m trying to figure out if that might actually be what the American consumer wants. I know I DON’T want that. I’m a little sickened every time I go into a sterile newly remodeled store with no seating and no place to socialize. Howard appears to also be bemoaning what the stores have become. As he says, it’s out of his hands now…..
As a partner who worked there from 2003-2007 and is now back since May, it is totally different. There is no time for the "magic," and "surprise and delight," which was a HUGE takeaway for me, is non-existent. I need the job and insurance, though, so "my poverty, not my will, consents."
Summary: Why did it work - relationships of the people (baristas) with the customers - Product is not just the coffee, it’s experience of having the coffee. And people LOVEDD the coffee and the experience - Invest in employees -> invest in customers -> repeat customers and brand loyalty -> more revenue -> better for shareholders. Shareholders come last and not first - High (~80%) gross margins. You can recover money within 2 years. You can invest in customer experience more - Customer acquisition: placing similar products at Costco, grocery stores, airlines etc - Placing stores in high footfall region. Store becomes the billboard - Customisation: you can create a slight variation of your product that you can’t get anywhere else. And no other store allows it as well 1 question: Why is Starbucks not a commodity like McDonalds?
This was a masterclass in business, brand and strategy. Howard is so engaging and passionate, this was simply terrific. Such a meaningful and valuable interview.
18:00 - 19:00. Also, born in NYC projects, got out, achieved JOB success but had to start my own company and take a larger shot. YBM vs OWM, similar beginnings ha. Very inspiring and motivational story.
In NYC we hardly had styrofoam cups for take away coffee, long before Starbucks, we had the ubiquitous blue paper "We are happy to serve you" Greek themed cups, and they had lids.
Howard did this interview to make it clear (if you read between the lines) that his interests in Starbucks have changed. He’s now made the pivot from being Starbucks management to being their most prominent activist investor. What matters now to him is stock price!
Starbucks also inadvertently became the biggest “coworking space” company in the world. Especially since Covid. Interesting part of the story / cultural evolution.
67, moved to the Seattle area in 84. A workmate brought up Starbucks and how good their coffee was. To hear this story brings up so many memories and the huge level of success that came out of the area. Schultz is a visionary and works his tail off to make it happen.
Schultz overindexes on mobile ordering and speed which is all fine. The issue with Starbucks is its product and value . The coffee’s taste and consistency sucks across stores based on who is at the helm. Fix the coffee and the outdated menu first - People getting their order delayed is one thing but getting a cold coffee when they asked for hot coffee is another thing .
Differentiation through experience and high quality arabica coffee. No to cost leadership. That’s Howard Schultz strategy to build Starbucks and that’s the soul of Starbucks.
Even more amazing than the Starbuck's story is the fact that I'm watching a TH-cam just hours after being published instead of years. Kinda scary to feel so up-to-date... hold me... Edit: I was just informed that me watching a current YT video is in fact not as amazing as the Starbuck's story. I apologize to everyone that might've gotten a thrill from my revelation.
I don't think we realize how lucky we are to have this podcast-styled interview with Howard Schultz
I mean, it’s a niche channel and Schultz is a legend, so I’m sure the fans know.
Settle down buddy. This is just another evil corporate demon
These episodes are like reading an autobiography of sorts. Love it.
better, he did not hold out anything
@@alexvechqqqqqq
It’s as exactly as told in …Pour Your Heart Into It, highly recommended read
True
I told everyone I know about this episode...My God it was an eye opener. So happy for Howard and his wife for continuing to stay the course despite what his father in law said and look today. The dream paid off. Wow 👍🏾
But also respect for all the men for understanding and recognizing that the father was right in his way as a man and a father. I respect these three men for acknowledging that part.
This podcast is absolute gold! What an amazing vision Howard had and the passion for his business is my biggest take away.
Great work Tem Acquired.
I have so much respect for Howard Schultz as a human being and a business leader - such a wonderful role model for entrepreneurs.
I think we are not appreciating the hosts enough…what great questions man!!! Loved it!
on spottt bro
Howard Schultz is the Steve Jobs of coffee. As an Ex-Barista, I luckily worked there when Starbucks was at it's peak before it became a mess with unions, politics, lack of innovation in customer service, all the mess with automation. It was a super fun job at the time all those years ago and I have a lot of respect for Schultz. First company to offer full coverage healthcare on a part time basis and all tuition reimbursement the way they did it. And yes, I did get more than one free drink a day and took so many protein boxes and pastries home that were going to waste. Also I agree with him 💯 on the mobile app. I said the same thing. It ruined the experience for lobby customers so bad because so many customers depended on mobile ordering and then would come through the drive through. It was such a nightmare. Think The Bear scene when the preorder option was left on lol
I absolutely love your interviews, phenomenal job gentlemen!
My note on this podcast: the only "culture" that you can export around the world is "luxury, lavish, prestige"
Apparently, olive oil coffee isn't one of them.
This episode is one for the books. What an amazing leader. I wish we have more leaders like him!
My dad loved this entire experience! Shout-out to acquired for the best pod in the game!!!
Thanks for a great interview video. Many takeaways.
1) being flexible to customer’s needs opens the doors to evolution (the cup-naming story), and
2) atmosphere is so ignored in organisations (but visible to a Communications graduate) and
3) the barista-customer intimacy is so important for repeat-customers
This is incredible. Being able to involve the people that were there and doing it on video is amazing. I hope to see a lot more of this!
Sam Stroum, mentioned in this episode, is the man Mary Gates had talk to her son, Bill, when he was thinking about dropping out of college. And, a bit of Seattle-area trivia, Stroum's former son-in-law owns University Village (an upscale outdoor mall).
What a treasure chest of insider startup grind stories! Loved to listen to your podcasts but watching is even better with charismatic guests!
My grandfather was a hard-working man who became rich by selling chai (tea) during the India-Pakistan partition in 1945-50s. He migrated from Pakistan to India, moving from Kutchh to Mumbai. He helped so many people throughout his life. This interview reminded me of my grandfather, as I never had the chance to meet him.
Is your grandfather Narendra Modi by any chance?
@@TheJoker-z3n He's not the only famous chaiwala, Looks like we've got another one in the making!🍵
This is the first sit-down interview I've seen of you guys!!! It's been two years that I've listened to you guys while driving on Spotify.
Thank you for this.
Your pod has been inspirational to many like me. I hope to catch up with you guys soon in the States.
All the best and thank you!
By far the best 3:15:40 of my life. Thank you for this amazing upload. How did you even manage to get an interview with an icon like Howard? I'd love to meet him one day!
Was glued to this. Thanks boys. As a Starbucks lover and entrepreneur was great to hear the story.
Finally a video episode!
one of the greatest podcasts ive ever seen. as a starbucks partner i now much better understand the company and its ideals. Howards ideas seem to always land and the company seems to go to shit without him
Why did Starbucks work instantly in countries like Japan and the rest of the world? Truth is, America. Everybody outside, wanted to be part of the American culture and Starbucks was a huge representative.
Absolutely so spot on! Most people get wrapped up in the beautiful story telling and forget to see what was happening around…
You’ve mentioned a beautiful point here!
Exactement 👍, vous êtes de quel pays ?
True but then why didn’t Dunkin donuts or any other major chain work as well in those markets? It’s easy to say America but much credit to companies like Starbucks, McDonald’s , Coca Cola, subway etc who are not just market leaders but the only representative of their market segments in many of these countries.
💯
Starbucks is based on Italian culture with the capitalism’s steroids of usa
what a great example of listening to your customers and iterating your business to meet their needs . amazing!
Let’s go!!! Now I want a Starbucks.
My mum recently visited me in Thailand. And she ordered a Starbucks every morning she was here. It was her comfort away from home whilst visited an unfamiliar place. Really interesting to see.
Hey guys, regarding the Starbucks app, I didn't get the second advantage of the economic of the app mentioned around 2:07:55 about not paying VISA. Doesn't Apple take a massive cut for app purchases?
Apple doesn't charge any fee on physical products (Uber, Airbnb, Amazon, Starbucks...). Apple charges a fee on digital goods (movies, eBooks, game coins, etc.). It would be crazy if Apple took 30% of Uber's revenue, for example. However, Apple does charge a fee to payment networks for using Apple Pay.
@@tebe652_ Thanks. As a company who sells digital products, I feel even them taking 30% on digital is crazy. ;)
But other question: don't gift cards count as digital products?
This is one of the best interviews I have seen, thanks for putting this together.
I would've voted for Howard, had he run. His humility and gratitude are quite extraordinary. Anyway, my current project was weighing me down emotionally. But then hearing Howard talk so enthusiastically about his fairy-tale-like journey just lifted me up to soldier on. THANK YOU, Howard! THANK YOU Ben and Dave for Acquired!
How on earth I haven’t found this show before blows my mind 🤯 so incredible 👏 instant subscribe
This is a great podcast - learning at the feet of Mr Howard Schultz & the transperance in what worked and challenges in building the Starbucks business is refreshing & educative!
Thank u Acquired!
I didn't expect to listen to (almost) the whole thing at once but this was THAT interesting. Came to youtube to see the comments. Thx for making and sharing this, and thanks to Howard for being so open and for caring about humans and for sharing these (hi)stories
I just listened to this podcast and forgot that there’s a YT channel too. Thanks Ben & Dave! Howard is a bad, bad man. This interview was pure 🔥
昔、旅行した時に聞いたBGMが、今でもその場所を思い出させてくれます。音楽は最高のタイムマシンです。
This video should have millions views. Great interviewers, great interviewee
I think it’s fair to say the “third place” concept is completely dead in United States stores. With the popularity of the mobile app and drive thru locations I’m trying to figure out if that might actually be what the American consumer wants. I know I DON’T want that. I’m a little sickened every time I go into a sterile newly remodeled store with no seating and no place to socialize. Howard appears to also be bemoaning what the stores have become. As he says, it’s out of his hands now…..
good analysis. the issue is americans just use it on the way to work
As a partner who worked there from 2003-2007 and is now back since May, it is totally different. There is no time for the "magic," and "surprise and delight," which was a HUGE takeaway for me, is non-existent. I need the job and insurance, though, so "my poverty, not my will, consents."
Yes, and the people doing this podcast are just that kind of people, not really authentic
Summary:
Why did it work
- relationships of the people (baristas) with the customers
- Product is not just the coffee, it’s experience of having the coffee. And people LOVEDD the coffee and the experience
- Invest in employees -> invest in customers -> repeat customers and brand loyalty -> more revenue -> better for shareholders. Shareholders come last and not first
- High (~80%) gross margins. You can recover money within 2 years. You can invest in customer experience more
- Customer acquisition: placing similar products at Costco, grocery stores, airlines etc
- Placing stores in high footfall region. Store becomes the billboard
- Customisation: you can create a slight variation of your product that you can’t get anywhere else. And no other store allows it as well
1 question: Why is Starbucks not a commodity like McDonalds?
I just wanna say, Ben is an incredible researcher and moderator. He literally knew everything before this episode and he asked great questions!
The brand has struggled in Australia for 20 odd years for good reason because we have a very sophisticated coffee market here.
this is legendary story !! had to watch to the end
Amazing keep posting on TH-cam !!!
Love it! I found it more interesting and delightful to watch than movies or biography
Great interview! Kept me engaged the entire time - you guys should do more video and interviews with CEO’s! 😊
Amazing episode! 🙌 Howard is a great storyteller.
This was a masterclass in business, brand and strategy. Howard is so engaging and passionate, this was simply terrific. Such a meaningful and valuable interview.
Really enjoyed the episode. Thanks for putting this one out for us.
这是我最喜欢的一期商业播客 love it！
18:00 - 19:00. Also, born in NYC projects, got out, achieved JOB success but had to start my own company and take a larger shot. YBM vs OWM, similar beginnings ha. Very inspiring and motivational story.
Wow, what an episode
2:26:00. In N Out, Buccees. Two food companies who have managed culture well
Fantastic episode. Please make many many more
I love that starbucks offers healthcare to their partners
In NYC we hardly had styrofoam cups for take away coffee, long before Starbucks, we had the ubiquitous blue paper "We are happy to serve you" Greek themed cups, and they had lids.
I looove this podcast ❤
Amazing. Inspirational. Motivational. Thankyou
Great interview 🙌🏼
Great story and accomplishment by Howard. Great interviewers too. Enjoyed this one
Great episode guys. Thank for taking on the telling of Howard’s story!!
Boycut 👍👍
3:19 how long, do you want in intro to be?
Best Content on You Tube! Wow, you guys are pros
Great interaction, good questions, better open conversation. Australia debacle was not mentioned. One more stud episode from Acquired.
That 1988 shareholder/employee meeting: think we could get a link to that? Amazing to think there’s a meeting like that when they had just 11 stores.
Howard did this interview to make it clear (if you read between the lines) that his interests in Starbucks have changed. He’s now made the pivot from being Starbucks management to being their most prominent activist investor. What matters now to him is stock price!
1:37:50 Starbucks in China
1:38:55 Belinda Wong story
Heck yeah! Going to be a good gym session now!
What turntable is Howard using? How about the rest of his stereo setup?
It would have a lot more views if the headline would be better. Great interview and thank you for providing this inspiration to us young founders.
This is great!
this was incredible, thank you.
Humility. A word Howard kept on his lips.
Was waiting for the new interview.
Okay.. I'm craving Starbucks.. But then I also remember that its $7 + tips, so I'll just drink iced water instead 😢
+ you will be healthier
Lol. You’ll never see me leave a tip somewhere where it’s expected.
And your free from millions of micro plastic released into the cup
wow this is amazing. Great stuff guys!
Like that he’s always focused on Starbucks core business, which is a coffee company serving people. Every decision is looked through these lens
Starbucks also inadvertently became the biggest “coworking space” company in the world. Especially since Covid. Interesting part of the story / cultural evolution.
Now many of their stores are a dump. I choose local coffee shops now 100%. They generally have better baristas and the employees care about the store.
67, moved to the Seattle area in 84. A workmate brought up Starbucks and how good their coffee was. To hear this story brings up so many memories and the huge level of success that came out of the area. Schultz is a visionary and works his tail off to make it happen.
What an amazing video! Such amazing insights! Very good job fellas 🙏🏼
hey, im from malaysia, in malaysia starbuck worst then previously, the table arent not clean at all, its all dity in all starbuck.
Incredible questions, guests and ideas. This should cost a lot of money.
this will be a good movie
😂😂😂 admiring the Preference falsification referencing Whole -part relations 🎉👍👏👏👏👏
4:39 minutes, intro..... Wow.....
Get a cup of coffee and settle in. It's going to be a good one. ☕
What an enjoyable business masterclass!
Timestamps please
Iv been a share holder since 1993 I asked for sock from Starbucks for Christmas from my wife the best Christmas present ever
Amazing. Pup cup. Client experience is everything.
Schultz overindexes on mobile ordering and speed which is all fine. The issue with Starbucks is its product and value . The coffee’s taste and consistency sucks across stores based on who is at the helm. Fix the coffee and the outdated menu first - People getting their order delayed is one thing but getting a cold coffee when they asked for hot coffee is another thing .
This is too good
The collab we didn't know we needed
After watching this interview, I’m running out to grab me a cup of Starbucks coffee ☕️
Best podcast episode in 2024 so far period.
Differentiation through experience and high quality arabica coffee. No to cost leadership. That’s Howard Schultz strategy to build Starbucks and that’s the soul of Starbucks.
Starbucks? High quality Arabica? 😂
Howie saying he’d like to believe Starbucks success isn’t based on caffeine being an addictive substance lol
2:08:25 was that a shot at the current management team?
Please make a video on Adobe…
Can you guys please do a series going over all of Warren buffets shareholder letters?
Loved this episode good to know his hidden history of Starbucks
great content! Howard Schultz said it all at 3:12:25
Even more amazing than the Starbuck's story is the fact that I'm watching a TH-cam just hours after being published instead of years. Kinda scary to feel so up-to-date... hold me...
Edit: I was just informed that me watching a current YT video is in fact not as amazing as the Starbuck's story. I apologize to everyone that might've gotten a thrill from my revelation.