The CEO Diary with Fexingo · 2026-07-24 · 8 min
In this episode of The CEO Diary, Lucas and Luna explore how Howard Schultz transformed Starbucks from a small Seattle coffee bean store into a global cultural phenomenon by creating a 'third place' between work and home. They focus on the pivotal 1987 acquisition of Starbucks by Schultz, his insistence on employee health insurance for part-time workers, and how that bet on people drove customer loyalty and massive growth. Specific numbers include the 1987 expansion from 11 stores to over 28,000 today, and the $4 billion annual cost of benefits that Schultz argued was a competitive advantage. Lucas draws a comparison to Costco's similar part-time worker strategy. The hosts also touch on how the third place concept was tested during the pandemic and why Starbucks stores in China feel different yet still resonate. The episode closes with a reflection on whether the third place idea can survive remote work and digital isolation.
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