Why Former Starbucks CEO Just Left Seattle
Seattle built Starbucks. Now one of the people who built Starbucks is leaving the city.
The Big Story
Howard Schultz, the former Starbucks CEO who helped turn the company into a global coffee brand, recently moved from Seattle to Florida after more than 40 years in Washington.
The move comes as state lawmakers consider a new tax on income above $1 million. Schultz hasn’t said the tax caused the move, but it has sparked conversation about how taxes and business climates influence where wealthy entrepreneurs choose to live.
The Two Spins
From the Left
Taxes on very high incomes help fund public schools, roads, childcare programs, and other state services people use every day.
Higher taxes on top earners allow states to invest more in education, infrastructure, and programs that support working families.
From the Right
When wealthy residents leave a state, local governments lose taxpayers who contribute a large share of income-tax revenue.
High-income residents often invest locally, supporting businesses, jobs, and charities in their communities.
What This Means for Us
Most people will never pay a tax aimed at million-dollar incomes.
But where wealthy business leaders choose to live still matters. Their companies create jobs, their investments support local businesses, and the taxes they pay help fund services like schools, transportation, and public programs.
How They Make Money
Uses location data and foot-traffic analysis to decide where to open stores, often placing multiple locations in busy areas to capture more customers.
Starbucks in airports, hotels, and retail stores are licensed locations, meaning another company runs the store while paying Starbucks fees and buying its coffee.
Takeaway
Location strategy can be just as powerful as the business itself.
The Number That Stuck With Me
$36 billion
The net amount of household income Florida gained from people moving there in 2022.