During a recent event in Las Vegas, former Starbucks CEO Howard Schultz expressed strong support for current CEO Brian Niccol’s “back to Starbucks” strategy, even stating he “did a cartwheel” in excitement when Niccol first introduced the concept. This backing is crucial as Niccol works to revive slumping sales and restore the cultural identity of the company. Schultz, who significantly grew Starbucks into a global brand, attended the Leadership Experience where over 14,000 store leaders gathered to learn about the company’s turnaround efforts.
Niccol, who took over in September after the board dismissed Schultz’s successor, Laxman Narasimhan, has laid out ambitious plans to reinvigorate Starbucks. Although Schultz’s role is no longer formal—as he previously served as interim CEO but announced no plans for a return—he is still allowed to attend board meetings.
In his initial week, Niccol emphasized returning to Starbucks’ roots by enhancing the café experience, such as reinstating indoor seating and personalizing customer interactions. The marketing strategy has shifted to spotlight the brand’s coffee over discounts.
Schultz had publicly supported Niccol when he was appointed, believing he was the right fit to lead the company. However, Schultz has previously criticized Starbucks under Narasimhan for failing to meet performance expectations, pointing to issues in mobile ordering and product innovation. He also highlighted deeper cultural problems within Starbucks, stating, “The culture was not understood. The culture wasn’t valued. The culture wasn’t being upheld.” This sentiment underscores the challenges Niccol faces as he aims to rejuvenate the company and reconnect it with its foundational values.
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