According to Starbucks Chairman and Chief Executive Officer Howard Schultz, "When you're surrounded by people who share a passionate commitment around a common purpose, anything is possible." This has been the ethos of the Starbucks franchise.
Now the same character of the company will be put to the test in what could be a potential stock crash. Early warnings are already being felt in the stock market. The United States stock market alone has already surrendered $2.1 trillion of value as for now.
Recently, the Dow Jones Industrial Average was down by 4%, continuing a difficult run for stocks. So, it was imminent that Starbucks had a 5% drop in Starbucks’ stock price. This reduction cost the company’s market value by more than $4 billion.And Schultz was hit hard by this loss.
According to Yahoo Finance, Schultz owns nearly 32.6 million shares. This reduction in market value means his net worth is $86 million less than what it was during the morning this news went out.
So now, he is urging the baristas, whom he refers to as "partners," to "be very sensitive" to customers at locations around the country. He feels his often affluent clientele might feel the pinch of this anomaly and could be better off with a bit more love from their neighborhood barista.
He said, "Today's financial market volatility, combined with great political uncertainty both at home and abroad, will undoubtedly have an effect on consumer confidence." He continued, “Let’s be very sensitive to the pressures our customers may be feeling, and do everything we can to individually and collectively to exceed their expectations.”
He further warned his 'partners' to be on their toes all the time, especially at this time of need. He said, "Our customers are likely to experience an increased level of anxiety and concern," he added. "Please recognize this and – as you always have – remember that our success is not an entitlement, but something we need to earn, every day."
Growing up in New York City housing projects, Howard Schultz never dreamed of going into business. He certainly never imagined he'd one day be running a global coffee chain and have a net worth estimated at $2.5 billion. So it is understandable that he is worried about his hard earned fortune. And even at the age of 62, he still strives to do what is best for the company.
Schultz is also a writer having written about his life story from rags to riches in the book 'Pour your heart into it'. In 2014, his second book 'For love of Country?' also got published. Schultz is married to Sheri Kersch, with whom he has a family consisting of 3 children.
On the whole, Schultz's life seems to be under control. His recent purchase of $25 million holiday house in Hawaii suggests so. But the recent fluctuation in stock market seems to have given the old man bit of a headache.