The former CEO of Starbucks, Howard Schultz, drinks from a cup of Starbucks while testifying before an audience of the Senate Health, Education, Labor and Pensions Committee to answer questions about compliance with the company with the Labor Law in Capitol Hill in Washington., USA, March 29, 2023.
Julia Nikhinson | Reuters
Las Vegas, Nev. – Former Starbucks The CEO Howard Schultz said Wednesday that “he made a squeak” in his living room when the current executive president Brian Niccol first coined his strategy to return to Starbucks. “
The enthusiasm of the 71 -year -old Starbucks president, Emeritus, is a key seal of approval for Niccol, since he tries to raise the company’s sales and restore the culture of the chain.
Schultz, who cultivated Starbucks from a small chain to a world -catering world giant, made a surprise appearance in the company’s leadership experience in Las Vegas and harassed Niccol’s plans. The three -day event has brought together more than 14,000 leaders from North American stores to listen to Starbucks Management while the company embarks on a change.
Niccol took the reins in September, joining the company after the Board overthrew Narasimhan, Schultz’s selected successor. After a difficult beginning of the year, Starbucks shares have risen almost 20% since the beginning of April. Now they operate around $ 95.30, just less that they closed on August 13, after a jump of almost 25% the day Niccol was appointed CEO.
Schultz had returned in 2022 for his third period as executive director, but it was just an interim role. He previously told CNBC that he has no plans to return. Schultz no longer has a formal role within the company, although CNBC has previously reported that he always has the right to attend the meeting of the Board unless the company’s directors.
Schultz was once one of the company’s greatest shareholders, but sold its Starbucks holdings at some point between the late 2024 and early 2025, according to FACTSET data.
During Niccol’s first week at work, he described the plans for the return in an open letter, making the commitment to return to “Starbucks”. More details about how the chain planned to return to its roots continued in the following months, from bringing back the seats inside the coffees to writing custom messages in cups. Under the leadership of Niccol, the company’s marketing has changed to concentrate on its coffee, instead of discounts and promotions.
When Starbucks announced the dismissal of Narasimhan and the hiring of Niccol, Schultz issued a statement of support, saying that the then CEO of Chipotle was the leader who needs the company. However, leadership experience marks the first time Niccol and Schultz have appeared publicly together.
During the short mandate of Narasimhan as CEO, Schultz did not put words when the company’s performance did not reach their expectations. After a lousy quarterly gains report, he weighed publicly on LinkedIn, saying that the company needs to improve its mobile order and experience and review how it creates new drinks to focus on premium items that distinguish it.
But Schultz said Starbucks’ problems went beyond only operational problems and mediocre foods.
“Culture was not understood. Culture was not valued. Culture was not being confirmed,” he said Wednesday.
– Tom Rotunno de CNBC contributed to this report
