Onward

In Onward: How Starbucks Fought for Its Life Without Losing Its Soul, Howard Schultz tells the story of how Starbucks—the world’s most recognizable coffeehouse chain—nearly lost its identity during the 2007–2008 financial crisis. What began as a small Seattle roastery had grown into a global empire, but with that growth came dilution. Stores had become cookie-cutter copies, baristas disengaged, and customers indifferent. The company’s once-distinctive atmosphere—the “third place” between home and work—was disappearing. When profits plummeted and the stock price dropped by over 40%, Schultz returned as CEO in 2008, determined not just to save the company, but to restore its purpose, soul, and humanity.

Schultz’s journey back to leadership wasn’t motivated by ego or nostalgia. It was driven by an unshakable belief that Starbucks was more than a company—it was a community. He sought to prove that a business could remain profitable while staying true to its conscience. This belief became the guiding principle of his turnaround strategy and the heart of Onward.

Rediscovering Starbucks’ Purpose and Identity

When Schultz re-entered Starbucks’ headquarters in Seattle, he was dismayed by what he saw: a corporation obsessed with expansion and quarterly earnings instead of human connection. Starbucks had opened thousands of new stores globally, but many were unprofitable and poorly managed. Baristas, once seen as “partners,” now felt like replaceable workers. Customers complained that the coffee tasted burnt, the service was impersonal, and the stores felt sterile.

Schultz realized the company had strayed far from its roots—the original vision of offering a warm, welcoming space centered on quality coffee and authentic relationships. To correct this, his first major act was a bold symbolic gesture: closing every Starbucks store in the United States for one afternoon in February 2008 to retrain baristas on the fundamentals of espresso-making. The event cost Starbucks an estimated $6 million in lost revenue, but Schultz saw it as an investment in excellence. “We had to re-teach the art of coffee,” he wrote, “to remind everyone—from the barista to the boardroom—why we existed.”

This decision wasn’t just about coffee; it was about culture. Schultz wanted employees to rediscover pride in their work and customers to feel the difference immediately. That night, as stores reopened, customers noticed the renewed care and precision. It was a small yet powerful signal that Starbucks was reclaiming its essence.

Overhauling Leadership and Rebuilding Culture

Schultz knew he couldn’t rebuild Starbucks alone. He restructured the company’s leadership team, replacing executives who prioritized short-term profits over long-term vision with those who believed in Starbucks’ mission. He promoted internal talent who understood the company’s roots and recruited outside innovators to bring fresh perspectives.

One of Schultz’s first major leadership initiatives was the 2008 Starbucks Leadership Conference in New Orleans. At a time when most companies were slashing budgets, Schultz spent $30 million to gather 10,000 store managers from around the world. Critics called it reckless, but Schultz saw it as essential. The location—New Orleans, still recovering from Hurricane Katrina—was chosen deliberately. Schultz wanted the city’s story of resilience to inspire Starbucks’ own comeback. Over ...