Howard Schultz moves away from Starbucks roots, trading Seattle for Miami

Howard Schultz announced he and his wife Sheri have entered the "retirement" phase of their lives. They've moved out of Seattle, where he grew Starbucks into a global coffee brand, and are now living outside of Miami, Florida.

"We will be forever grateful for the memories made in Seattle and the relationships built along the way. To the family, friends and partners who made Seattle our home for so many years, thank you," Schultz said in an announcement on LinkedIn.

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Schultz commented that the move brings him closer to his kids who now live on the East Coast, raising families of their own. It echoes a sentiment of another big Seattle business leader, Jeff Bezos, who gave similar reasoning when he moved out of Seattle, and into Miami, in late 2023. The Wall Street Journal reports that Schultz recently purchased a $44 million penthouse at the Surf Club, Four Seasons Private Residences in Surfside, a barrier island suburb of Miami. The penthouse is 5,500-square-feet with five bedrooms and a rooftop courtyard.

He further noted that the Schultz Family Foundation will continue to operate in Seattle, led by Vivek Varma, though "our private family office will move to Miami."

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In his online announcement, Schultz reminisced about moving to Seattle from New York City 44 years ago. He took a job at Starbucks in 1982, when it was only selling whole coffee beans. Since then, the coffee company dramatically grew its menu and expanded to worldwide dominance.

Schultz also expanded his personal business in Seattle with the purchase of the Seattle SuperSonics basketball team in 2001. He infamously sold the team in 2006, however, which led to the Sonics' move out of Seattle. Locals consider Schultz responsible for the loss of Seattle's NBA team. Schultz has publicly taken responsibility for the loss and has apologized for it.

Schultz's move comes a couple years after Amazon founder Jeff Bezos announced the same Seattle-to-Miami move (technically, Bezos lived in Medina). That decision came shortly after Washington's state Legislature passed a capital gains tax in 2021, which was upheld in the courts in 2023. As KUOW previously reported, Bezos has a history of choosing locales based on taxes. He started Amazon in Seattle partially because of the lack of income tax. With a residence in Florida, a state with no income tax, Bezos would save a considerable sum whenever he sold Amazon stock.

Florida has experienced a notable influx of super wealthy residents. Locals now refer to the wealthy suburbs outside of Miami as "Billionaire Bunker." California resident Mark Zuckerberg reportedly has purchased property on another barrier island near Miami (just down the street from Bezos). California is currently considering a one-time 5% billionaire tax.

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Washington state Democratic lawmakers are currently in the process of passing a millionaires income tax. After some hesitancy, Gov. Bob Ferguson has indicated he would sign it into law. The millionaire's tax would take 9.9% of household incomes more than $1 million, affecting around 20,000 Washington households. It is estimated to raise roughly $3 billion in state revenue, starting in 2029.

Schultz did not mention any tax reasons, nor did he cite political or financial arguments for his move to Miami. He did, however, comment on the local business culture.

"Like many other Seattle-based companies, Starbucks today stands on the shoulders of the many Pacific Northwesterners who built the company," Schultz wrote. "They helped shape the culture, the benefits and the brand, contributing to the civic, community and public life of the city and state. It is our hope that Washington will remain a place for business and entrepreneurship to thrive, creating essential opportunity for those in Seattle and the surrounding areas."