Starbucks was committed to educating its customers to appreciate the qualities of fine coffees, rather than just trying to use mass-market appeal.
Schultz knew he wanted to work for Starbucks and asked Baldwin if there was any way he could fit into the company. Schultz pressed his ideas about the potential for expanding Starbucks and offered to take a salary cut in exchange for a small equity stake. Even though the owners were worried that Schultz would be committing Starbucks to a new direction, he was named head of marketing in September 1982. Schultz worked with store employees to develop customer friendly sales skills and produced brochures that made it easy for customers to learn about fine coffees.
In 1983, Schultz was sent to Milan, Italy to attend an international housewares show. It was there that he noticed an expresso bar. After the trade show ended, he walked the streets of Milan exploring expresso bars, and was amazed at there popularity. Schultz was intrigued by the fact that there were 1500 coffee bars in Milan, and over 200,000 in Italy. He decided that Starbucks needed to serve fresh brewed coffee, expresso, and cappiccino in all of its stores.
After returning form Italy, Schultz shared his vision for Starbucks with Baldwin and Bowker, who were opposed to the plan. They feared that serving drinks would dilute the integrity of the business. They were also financially committed to the opportunity of buying Peet's Coffee and Tea in California. The acquisition of Peet's strained the relationship with Starbucks employees, who felt neglected. In 1984, Starbucks employees held a union election in which the union won by three votes. Schultz was also frustrated because of a lack of support for his ideas. In 1985, he left Starbucks to start his own company, Il Giornale. .
Schultz encountered heavy opposition in acquiring investors. Some stated that the coffee industry had been declining since the 1960s, and others feared that customers would not pay more than $1.
