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CNN This Morning

Howard Schultz Talks About Running Starbucks for a Third Time, Biden Meets with Bucharest 9 Leaders, Dozens of UK Companies are Sticking to 4-Day Workweek. Aired 8:30-9a ET

Aired February 22, 2023 - 08:30   ET





POPPY HARLOW, CNN ANCHOR: You've run Starbucks three times?


HARLOW: You've left Starbucks three times?


HARLOW: Is this the final time full stop?


HARLOW: You're ready to let go?

SCHULTZ: I'm ready to let go. I'm ready for the next chapter in my life. I don't know what that's going to be, but I'm not coming back to Starbucks.


HARLOW: That is outgoing Starbucks CEO, Howard Schultz saying, this time, he is leaving for good but not before taking one more big swing. He wants to go out like he came in, revolutionizing the coffee industry. So I traveled with him to two places that have had a significant impact on his life, the fields of Italy, where his newest innovation originated and the public housing in Canarsie, Brooklyn where he grew up.


HARLOW: Is this how you think people will start their day?

SCHULTZ: The proof is in the cup. And once they sample it, I think they order.


SCHULTZ: Oh, yes


HARLOW: Howard Schultz wants to end his 40-year career where his vision for Starbucks was born.


It's not overpowering.


HARLOW: Not in Seattle, but in Italy.


SCHULTZ: If somebody took a blood test of me, yes, I think my bloods coming out gold. I've had so much olive oil.


HARLOW: Olive oil in your coffee, a spoonful per cup, sometimes, bubbling to the top, an infusion of what Italians call liquid gold, source from centuries old olive trees in southwestern Sicily. Schultz says, he hasn't been this excited since 1983 when he brought Italy's coffee culture to America.


UNIDENTIFIED FEMALE: I love Starbucks. We had it three times today.


HARLOW: He's the man who made Starbucks ubiquitous.


SCHULTZ: I was a barista before there was a barista (INAUDIBLE).


HARLOW: While insisting his company was about much more than coffee.


SCHULTZ: Most things, especially in America that have gotten big have not stayed good, or true, or authentic.



HARLOW: And speaking out like few public company CEOs before him.


SCHULTZ: Guns should not be part of the Starbucks experience.



SCHULTZ: And who wants to embrace diversity?



SCHULTZ: And I honestly don't see color now.


(BEGINE VIDEOTAPE) HARLOW: Why is this your last move?

SCHULTZ: Well, I didn't plan this in my career at Starbucks in the same place that I started in a completely different way. Coffee has been around for 1000s of years. No one's ever thought of mixing the two except me. And so it took an espresso machine, took a French press, and started playing around. And I think, to our surprise, to say the least, the taste profile started producing this luscious, velvety flavor that lingers in your mouth. We've discovered something quite extraordinary.

HARLOW: You think this transforms coffee?

SCHULTZ: I know it'll transform the coffee industry. A very few people outside of Starbucks have tasted it. No consumer research, whatsoever. Nothing.

HARLOW: Isn't that a risk?

SCHULTZ: I don't think so. I mean, I just think everything we've ever done that has succeeded at Starbucks is proven in the cup.

HARLOW: You're sure this one got the way of sparkling coffee?

SCHULTZ: No, no, no. The future of the company today is based on customization. So people are going to add a tablespoon of Partanna extra virgin olive oil into their drink, I'm sure about.

HARLOW: Part of that customization has meant more work for baristas?

SCHULTZ: Yes, it has.

HARLOW: Are you conscious of that, that this might add to that concern right now already?

SCHULTZ: I am conscious of it. And so the way we've designed the execution of the tablespoon of olive oil is no added work for our people.

(END VIDEOTAPE) HARLOW: Those people, Starbucks partners, are squarely in the spotlight with a very public labor dispute between the company and Starbucks Workers United


SCHULTZ: Embracing the status quo is a death sentence. You must push for self-renewal and reinvention like Olea, like olive oil in the coffee. But there's a balance that has to be -- and it's fragile that has to be maintained between pushing for self-renewal and reinvention, and maintaining the core values of the company. And that is where companies and that's where Starbucks in the past has lost its way where it has tilted too much to a place where it's been too financially-oriented, too financially skewed, too focus on the stock price. And the only way forward for Starbucks is to follow the hearts and minds of our people.

HARLOW: How do you know you're not too focus on profits right now?

SCHULTZ: Well, my focus 100% of the time is on two things, making our people proud and exceeding the expectations of our customers

HARLOW: And to critics who would say, why are you here in Sicily focusing on this now? Why aren't you at the negotiating table with those unions?

SCHULTZ: We want to and are willing to enter into bargaining, but we want to do it face to face. That's what we think is the right thing to do.


HARLOW: We went with Schultz to revisit a very different part of his life, the public housing where he grew up in Canarsie, Brooklyn.


SCHULTZ: I must say, it's very -- it's almost surreal to kind of be here all these years later, and just be this close to where I grew up. And you can kind of feel the claustrophobic feeling of these walls. (END VIDEO CLIP)

HARLOW: Behind those walls, Schultz remembers abuse by his father who had one bad job after another, leading to low self-esteem, anger, and beatings.


SCHULTZ: One down is 7G, the middle window. And this is a place that I came to kind of get away from the anger, the dysfunction, the yelling. And this is where it was a safe place for me. And this is where I used to hide as a young boy, literally hide.

HARLOW: So standing here now feels like what?

SCHULTZ: Yes. I can almost cry actually. Yes, I can almost cry. HARLOW: Really?

SCHULTZ: Yes, yes. We should probably go.


HARLOW: But his mother.


SCHULTZ: I think she gave me self-esteem. She had such an optimistic view of America and the American dream.

HARLOW: I just wonder though, if you think that you would have become what you became without this?

SCHULTZ: No. No. I think that's a very good question. There's no way I would have had the drive or the ambition and the insecurity that comes with living in a place like this.

HARLOW: You are insecure?

SCHULTZ: No doubt. I'm 69 years old, and I'm still this kid from the projects. I never would have had the drive to do what I've done and have the success I've enjoyed if I didn't come from this place. And I think the kind of company I tried to build all these years with a set of values, and guiding principles, and shared success, giving people education, all the things I've tried to do is based on the fact that trying to create a kind of company that my father never got a chance to work with.


HARLOW: in April, Schultz will step down as CEO for the third time. And he says, the final time.



HARLOW: What has been most meaningful to you in this 70 years?

SCHULTZ: You know, it's hard to walk in someone else's shoes, but you got to do that a little bit. Those formative years in Brooklyn, and specifically in the projects, it shaped my life. And the most truthful revelation about your question is the shame, the vulnerability, and the insecurity has never left me.


HARLOW: With 36,000 stores in 80 countries, Starbucks has never been bigger.





SCHULTZ: Well, success is something you wear as armor and you project it. And certainly, I do that in the role and responsibility I have. And I carry with me the platform of Starbucks. but inside, there's still that question, are you enough? And you never really quite feel enough. And the hardest part of leading, and being a CEO of a public company is you got to project confidence, and you got to get people to believe. And there's always self-doubt.

And so how do you partial that self-doubt with projecting confidence and a vision for the future? That's real. That is the most truthful thing I can tell you, that 69 still asking the question, am I enough for that? First that first time that we have this --


HARLOW: For sure, Schultz, you could say the coffee has been the easier part of what journey. The rod ahead is still brewing.


SCHULTZ: We're all imperfect. We're all human. We're hard on ourselves. And I think you got to look at the whole picture. And I'm still a work in progress.


HARLOW: it's fascinating to go on that journey with them as he's leading this company in a time that's going to really determine the future of it, especially with what's going on with the unions and with this next big bet that he made.

DON LEMON, CNN ANCHOR: They can use the coffee.


LEMON: They can use the coffee in Warsaw because it's been a big trip for the President and all involved.

HARLOW: A big trip. Yes, let's look at this.

LEMON: I want to get the pictures now. President Biden arriving at the presidential palace just moments ago in Warsaw to meet with the leaders of the Bucharest Nine. He's going to be meeting with them. The leaders of Poland, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Romania, and Slovakia.

HARLOW: Yes. And a few of them will speak.wwe'll hear first from President Duda of Poland and the Slovakian President, the Romanian President, then from Biden. So of course, we'll carry that for you live. They're also going to be joined by the Secretary General of NATO, Jens Stoltenberg. He'll join us actually in the program tomorrow.

LEMON: Tomorrow, yes. All right. So we'll continue to follow these pictures coming out of Warsaw, Poland a,s well as some other news. Harry is here. We'll explain next.



LEMON: OK, there you go. This happens happen just moments ago in Warsaw Poland, members of the Bucharest Nine plus the President of the United States there. They call it a family photograph. This is just before the meeting to be held in just moments.

HARLOW: But let's show you the map where all these leaders are from because the reason they're called the Bucharest Nine is about their proximity to Russia and their concern and their threat, the threat concern they have from Russia given the incursion in the attacks on Ukraine and what that could mean for their nations. We're going to hear from President Biden speaking with them in a little bit. But first, we'll hear from the Polish President Duda. We'll hear from the Slovakian President, the Romanian President, then Biden, and the head of NATO is there too.

LEMON: As I said, this is a big trip for the President. And we're speaking a lot about people who may be challenging the President on the Republican side. But I think what folks have to remember just as when Trump was President, the biggest and the best pulpit is the bully pulpit. And that is holding the mic as the President of the United States that is hard to fight against in this upcoming season. And the President using it diplomatically in this moment.

HARLOW: On the world stage on such a significant week, of course, Friday marks one year from the Russian invasion.

LEMON: It's hard to believe that standing there and reporting. And it happened on my show, it's hard to believe it's been a year --

HARLOW: The invasion with happened on your trip.

LEMON: -- with Matthew Chance, the first (inaudible) the invasion, but the first rockets to fly happened --

HARLOW: That night.

LEMON: -- that night. And with Matthew Chance standing on that balcony, putting on his gear, his vest, and his helmet there. And we've just sort of went for hours live.

HARLOW: And then you went and had coverage. And now, a year later, and it is still going on. OK, we're going to keep a very close eye on what's happening there. Meanwhile, we've all been here. Watch this.


UNIDENTIFIED MALE: Hello, Peter, what's happening? What's happening? I'm going to need you to go ahead and come in tomorrow. So if you could be here around nine that would be great. Oh, and I almost forgot, I'm also going to need you to go ahead and come in on Sunday too.


LEMON: That is one of my very favorite movies, right?

HARLOW: Best movie ever. If you love office space like we clearly do, you know the feeling your boss asked you to pick up extra days at work. But what if they did the exact opposite and asked you to work fewer days that is apparently catching on in the United Kingdom?

ENTEN: Is that a good sign?

LEMON: We don't need you to come in.

ENTEN: I wouldn't like that sign.

LEMON: We're talking about four-day word that's happening UK, at four- day, the largest four-day work week trial ever, right? Our senior data reporter, Harry Enten, is here with more on this morning's numbers. So what is this all about?

ENTEN: Yes. First of all, let me just say, I love office space. This morning's number is 92% because companies in the UK four-day work week true trial. After trial concluded 92% are continuing with the four-day workweek. So it was quite successful. And let's first -- we'll break it down by employers, then employees, the employers and employees. How companies deal in a four-day workweek?


OK. Employers right at the trial on average. An 8.3 out of 10 company revenue compared to last year, up 35%. So employers seem to like it. What about employees had an employee's feel about a four-day workweek? Among those who responded stress, down, fatigue, down, burnout, down, insomnia, down, physical health, up. There you go and mental health up here, that was also up.

HARLOW: Super (INAUDIBLE) to jump.

ENTEN: There you go.

HARLOW: You're getting too old for that?

LEMON: Yes. I --

ENTEN: We're all young enough at heart, so I wouldn't worry too much. Don't burn yourself out. That's the purpose of a four-day workweek is so that you don't burn yourself out.


HARLOW: I'm all for this. Are you for this?

LEMON: What, for four-day workweek?


LEMON: I like working. I love what I do. But I can see why people love it. I actually -- look, goes against this, I like going into the office. I think people should go in.

HARLOW: I do too.

LEMON: That's just me.

ENDEN: I do a six-day workweek. So if I --

HARLOW: You do?

ENDEN: If I would dial back, it would be a five-day workweek. I think the question though is whether or not this would actually work in the United States, right, because we're talking about a UK study. Continue get your exercise done.

LEMON: No, (INAUDIBLE) my back. I'm trying to stretch it out because that hurt.

ENDEN: So the good news is that a smaller study in the US was similarly positive. The EH News was that trial companies tended to be very white collar and small. But do American workers want it? 70% support it. So don, you're in the minority on this.

LEMON: I'm on the minority. Yes. Well, there you go. All right. I think (INAUDIBLE). Kaitlyn is also saying (INAUDIBLE). She likes working. She thinks people should come into (INAUDIBLE).

HARLOW: I'm good with four. You guys can do Friday's.

ENDEN: We'll combine through Fridays, Saturdays, and Sundays.

LEMON: I think with the shift Mondays, that don't have Monday (INAUDIBLE).

HARLOW: Yes, that's true.


ENDEN: I like that.

HARLOW: Yes. Yes. Yes, you can any.

LEMON: Yes, I know. But then Tuesday is different from Monday.


LEMON: You know, whatever.

ENDEN: You got a case within Tuesday. That's it.

HARLOW: Thank you, Harry, very much. Let's go -- LEMON: Live pictures, yes.

HARLOW: -- overseas. These are live pictures of President Biden meeting with the Bucharest Nine leaders in Warsaw, Poland. The president said to speak very soon.

LEMON: We're going to carry it for (INAUDIBLE) live (INAUDIBLE).



LEMON: Well, clearly this is the morning moment right now, the President of the United States speaking in Warsaw, Poland, the Bucharest Nine leaders. Let's listen in.


BIDEN: The irony is that one of the last conversations I had with the -- our friend in Russia was -- I said you keep asking him for the Federalization of NATO, you're going to get the NATOization of Finland. Well it happen. Not only are we strong as we were, we're stronger. And I say to my fellow Presidents that I'm honored to be with you here and so many strong NATO allies, and the Secretary General, who I think has done an incredible job, an incredible job for a long time. I rely on his judgment a great deal.

You know, the B9 was founded in 2015, after Russia attempted annexation of Crimea. And today, as we approach the one-year anniversary of Russia's further invasion, it's even more important that we continue to stand together. And I think this is proof of this how strongly we feel.

That's why I wanted to meet all of you in person here today. As NATO's eastern flank, you're the frontlines of our collective defense. And you know better than anyone what's at stake in this conflict not just for Ukraine, but for the freedom of democracies throughout Europe and around the world.

You know, when -- that's what President Zelenskyy and I spoke about when I was in Kyiv two days ago. And the leaders around this table have repeatedly stepped up to reaffirm our shared commitment to all these values. We provided critical security assistance to Ukraine and critical support to literally millions of refugees. We've helped ensure Ukrainians can access basic services. And together, we'll continue our enduring support for Ukraine as they defend their freedom.

Over the past year, with your countries -- with countries around this table providing collective leadership, we've also strengthened NATO. The commitment of the United States to NAT, and I've said it to you many times; I'll say it again, is absolutely clear. Article Five is a sacred commitment the United States has made. We will defend literally every inch of NATO, every inch of NATO.

And it's -- this is an important moment. And I look forward to the discussion and the next steps we can take together, and to keep our alliance strong, and to further deter aggression. Because what literally is at stake is not just Ukraine, it's freedom, the idea that over 100,000 forces would invade another country after war -- since World War II, nothing like that has happened. Things have changed radically. And we have to make sure we change them back.

So, thank you all very much for allowing me to be with you. And I look forward to our private discussions.

UNIDENTIFIED MAN: Thank you very much, President.


LEMON: President Biden, the last speaker there in Warsaw, Poland, as he is speaking with the Bucharest Nine.


LEMON: Not going so far as to say that they will invoke Article Five of NATO which is an attack on one is an attack on all, but he's saying they will do everything they can to defend the Bucharest 9 and to defend the borders and to defend what NATO stands for.


HARLOW: Yes. And as you've been saying all morning, a huge moment for this president on the world stage and a very significant week as we get close to one year since the Russian invasion of Ukraine. Our colleagues, Jim Sciutto, Kristin Fisher pick it up.

LEMON: Kristin Fisher and Jim Sciutto right now.

HARLOW: Yes. They pick it up here.

LEMON: Have a great day, everyone.

HARLOW: See you.