Howard Schultz

Both from a it's-the-right-thing-to-do perspective and the amazing business model benefit of the retaining employees. I mean, it's so expensive to train a new employee. It's not expensive to keep an existing employee, and so you can just pay people more if you keep them for longer. You know, you just... basically have extra money lying around is what Costco discovered.

Both from a it's-the-right-thing-to-do perspective and the amazing business model benefit of the retaining employees. I mean, it's so expensive to train a new employee. It's not expensive to keep an existing employee, and so you can just pay people more if you keep them for longer. You know, you just... basically have extra money lying around is what Costco discovered.

There's so much about Starbucks, to David's point, that's similar to Costco. Did you ever speak with Jeff Brotman or Jim Senegal or any of those guys about this concept? Do you know the answer to that? I actually don't. No, we don't know the answer. I assume the answer to this, but I don't know it.

There's so much about Starbucks, to David's point, that's similar to Costco. Did you ever speak with Jeff Brotman or Jim Senegal or any of those guys about this concept? Do you know the answer to that? I actually don't. No, we don't know the answer. I assume the answer to this, but I don't know it.

First, Jeff Brotman invested in Starbucks in the round to buy Starbucks.

First, Jeff Brotman invested in Starbucks in the round to buy Starbucks.

Yeah, in that 87 round. That's when I met Jeff for the first time. Jeff became a board member of the early imprinting of Starbucks. and clearly a mentor, mentor of mine. And then he introduced me to Jim Sinegal.

Yeah, in that 87 round. That's when I met Jeff for the first time. Jeff became a board member of the early imprinting of Starbucks. and clearly a mentor, mentor of mine. And then he introduced me to Jim Sinegal.

And so there were many moments of me sitting with Jeff and Jim, including the huge decision to put Starbucks coffee in Costco, which there was a revolt inside the halls of Starbucks saying, no effing way.

And so there were many moments of me sitting with Jeff and Jim, including the huge decision to put Starbucks coffee in Costco, which there was a revolt inside the halls of Starbucks saying, no effing way.

And we did it. And Jeff and Jim took me to a parking lot in Kirkland when I said, I don't know if we can do this. I don't know if I can sell it inside. Okay, meet us on a Sunday morning, whatever it was. Look at the cars. These are your customers. In fact, putting Starbucks in Costco, we were able to measure directly

And we did it. And Jeff and Jim took me to a parking lot in Kirkland when I said, I don't know if we can do this. I don't know if I can sell it inside. Okay, meet us on a Sunday morning, whatever it was. Look at the cars. These are your customers. In fact, putting Starbucks in Costco, we were able to measure directly

the increase in volume in the stores on the east side as a result of the proximity to the Costco store.

the increase in volume in the stores on the east side as a result of the proximity to the Costco store.

You sold beans. We sold beans. In Costco. Yes. And that brand awareness of I buy Starbucks beans at home meant that that group of people went to the stores more often.

You sold beans. We sold beans. In Costco. Yes. And that brand awareness of I buy Starbucks beans at home meant that that group of people went to the stores more often.

Because we introduced thousands of beverage customers to Costco through the beans. So Jeff and Jim were instrumental in so many things and were so kind to me as a young kid.

Because we introduced thousands of beverage customers to Costco through the beans. So Jeff and Jim were instrumental in so many things and were so kind to me as a young kid.

Then we went nationwide with Costco. So this is a thing that I think many people don't realize now that Starbucks is ubiquitous. We sort of forget about this time when it wasn't and where people had to find some way to experience Starbucks. You know, you only get a few stores in each of these cities. You're only in a few cities. But there are ways to scale brand awareness.

Then we went nationwide with Costco. So this is a thing that I think many people don't realize now that Starbucks is ubiquitous. We sort of forget about this time when it wasn't and where people had to find some way to experience Starbucks. You know, you only get a few stores in each of these cities. You're only in a few cities. But there are ways to scale brand awareness.