Schultz is a former Starbucks CEO who resigned from the top spot last April to focus on improving social issues and innovation of the company.
Schultz's departure comes a week after the company closed more than 8,000 United States stores to provide racial bias awareness training to around 175,000 employees.
Starbucks Chairman and CEO Howard Schultz presents during the Starbucks 2016 Investor Day meeting, in New York, Wednesday, Dec. 7, 2016.
Schultz, 64, who grew Starbucks from 11 stores to more than 28,000 stores in 77 countries during his time at the helm, will become chairman emeritus on June 26, the company said in a statement.
"I want to be truthful with you without creating more speculative headlines".
When asked about the 2020 presidential election, he said: "I intend to think about a range of options, and that could include public service".
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"I told myself a long time ago that if I was ever going to explore a second act, I couldn't do it while still at the company", he added.
Starbucks, which styled itself as a "third place" for Americans to congregate along with work and home, also because synonymous with an urban style that bred imitators and changed the food business.
"One of the things I want to do in my next chapter is to figure out if there is a role I can play in giving back", he continued.
"I set out to build a company that my father, a blue-collar worker and World War II veteran, never had a chance to work for", Schultz wrote in a letter to Starbucks partners.
Starbucks shares closed up 0.28 percent at $57.07 in regular Monday trading on the Nasdaq, but were down 1 percent at $56.50.
Starbucks' board named Myron Ullman, previously chairman and CEO of struggling retailer J.C. Penney Co, as its new chair, and Mellody Hobson as vice chair effective upon Schultz's retirement.
The coffee chain also recently faced backlash after two black men were arrested at one of its Philadelphia cafes while waiting for a meeting to start.