Writer Jerry Baldwin, English teacher Gordon Bowker, and history teacher Zev Siegl had been buying their coffee from as far away as Berkeley, California, and Vancouver, British Columbia, and they saw a business opportunity. Each contributed $1,350 and borrowed another $5,000 to open a store that sold coffee beans, which they ordered from Peet's Coffee and Tea in Berkeley. They wanted to use a nautical theme and looked for names in the nineteenth-century novel Moby Dick. In researching Puget Sound history they discovered a mining camp on Mt. Rainier called Starbo. This evolved to Starbucks, after the ship's mate in Moby Dick.
At first, Zev Siegl was the only paid employee. Bowker and Baldwin kept their day jobs. Sales exceeded expectations and late in 1972 a second store opened in the University District. Siegl sold his stake in 1980 when Starbucks had four stores.
Howard Schultz (b. 1953) entered the scene in 1981. He was a New York-based vice president for a Swedish housewares manufacturer. He was "bowled over by his first sip of the dark-roasted coffee and urged Baldwin to hire him" (Seattle Post-Intelligencer, 2000). In 1982, Schultz signed on as director of marketing and retail stores.
In 1987, Howard Schultz led a group that bought Starbucks from its founders. By mid-2004, Starbucks had more than 8,000 retail outlets worldwide and was opening new stores at the rate of about three every day.