{"id":3959520,"date":"2024-05-07T12:40:00","date_gmt":"2024-05-07T19:40:00","guid":{"rendered":"https:\/\/mynorthwest.com\/?p=3959520"},"modified":"2024-05-07T12:40:00","modified_gmt":"2024-05-07T19:40:00","slug":"ex-starbucks-ceo-schultz-company-needs-refocus-coffee-sales-struggle","status":"publish","type":"post","link":"https:\/\/mynorthwest.com\/3959520\/ex-starbucks-ceo-schultz-company-needs-refocus-coffee-sales-struggle\/","title":{"rendered":"Ex-Starbucks CEO Schultz: Company needs to refocus on coffee as sales struggle"},"content":{"rendered":"

Former Starbucks CEO Howard Schultz says the company’s leaders should spend more time in stores and focus on coffee drinks as they work to turn around flagging sales.<\/p>\n

In a LinkedIn post published over the weekend, Schultz said many people had reached out to him after Starbucks reported weaker-than-expected quarterly sales and earnings last week.<\/p>\n

The Seattle coffee giant said\u00a0revenue dropped 2% in the January-March<\/a>\u00a0period as store traffic slowed around the world. It was the first time since 2020 that the company saw a drop in quarterly revenue. Starbucks also lowered its sales and earnings guidance for its full fiscal year.<\/p>\n

Schultz,\u00a0who bought Starbucks in 1987<\/a>, is credited with growing the company into the global behemoth it has become with nearly 39,000 stores worldwide. He has been the chairman emeritus of the company since last fall, when he\u00a0stepped down<\/a>\u00a0from Starbucks\u2019 board.<\/p>\n

Schultz remains Starbucks\u2019 largest individual shareholder, holding shares that were valued at $1.5 billion at the end of last year.<\/p>\n

More on Starbucks:<\/strong> Original Pike Place location reopens after vandalism<\/a><\/p>\n

In his post, Schultz said senior leaders \u2013 including board members \u2013 need to spend more time talking to baristas in the company\u2019s stores.<\/p>\n

“I have emphasized that the company\u2019s fix needs to begin at home: U.S. operations are the primary reason for the company\u2019s fall from grace,\u201d he said. \u201cThe stores require a maniacal focus on the customer experience, through the eyes of a merchant. The answer does not lie in data, but in the stores.\u201d<\/p>\n

Laxman Narasimhan, who became Starbucks’ CEO last spring,\u00a0has been working a half-day shift<\/a>\u00a0in Starbucks stores once a month.<\/p>\n

At some points in his post, Schultz seemed to be questioning Narasimhan\u2019s turnaround plans. In a conference call with investors last week, Narasimhan mentioned several new products he thinks will drive customers to stores later this year, including boba drinks, sugar-free options and the brand\u2019s first energy beverage.<\/p>\n

But Schultz said coffee is what differentiates Starbucks and reinforce the company\u2019s premium positioning.<\/p>\n

“The go-to-market strategy needs to be overhauled and elevated with coffee-forward innovation,\u201d he said.<\/p>\n

‘What’d you say?’:<\/strong>\u00a0Starbucks attempts to tamp down the noise<\/a><\/p>\n

Narasimhan did announce plans for coffee pop-up stores in the U.S. and elsewhere last month. Starbucks plans to use the stores to experiment with limited-edition coffee drinks, teach younger customers about coffee and learn about customers’ preferences.<\/p>\n

Schultz also said the company should update its mobile ordering and payment platform to “once again make it the uplifting experience it was designed to be.” He didn’t specify the changes he thinks should be made. Narasimhan said last fall that Starbucks is accelerating the introduction of new digital features and trying to personalize the customer experience within its app.<\/p>\n

“We always appreciate Howard’s perspective. The challenges and opportunities he highlights are the ones we are focused on. And like Howard, we are confident in Starbucks long-term success,\u201d Starbucks said Monday in a statement.<\/p>\n

Schultz has a history of stepping in when he see Starbucks struggling. He retired as CEO in 2000 and became the company\u2019s chairman, then returned as CEO in 2008 when the company was dealing with the recession.<\/p>\n

Schultz stepped down again in 2017 but returned to lead the company on a temporary basis in 2022. In 2023, he named Narasimhan, a former PepsiCo executive, as CEO. Schultz left Starbucks\u2019 board last fall and became chairman emeritus.<\/p>\n

Starbucks shares were flat Monday. The company’s stock price has fallen more than 20% since the start of this year.<\/p>\n","protected":false},"excerpt":{"rendered":25,"protected":false},"author":88,"featured_media":3959544,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[34,39,36],"tags":[],"acf":[],"yoast_head":"\nEx-Starbucks CEO Schultz: Company needs to refocus on coffee<\/title>\n<meta name=\"description\" content=\"The former Starbucks CEO also says the company's leaders should spend more time in stores as they work to turn around flagging sales.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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