LAS VEGAS, Nev. — Howard Schultz, the former CEO of Starbucks, expressed his excitement about the company’s future at a recent event, saying he felt like “doing a cartwheel” when he first heard about current CEO Brian Niccol’s “back to Starbucks” strategy. As Starbucks faces challenges with declining sales and a need to revitalize its brand culture, Schultz’s endorsement acts as a significant boost for Niccol, who was appointed to steer the company in a promising direction after a leadership change.
Schultz, who is credited with transforming Starbucks from a small business into a global coffee powerhouse, appeared unexpectedly at the company’s Leadership Experience in Las Vegas. This three-day gathering attracted over 14,000 leaders from North American stores as they looked to rejuvenate the coffee giant amidst shifting market dynamics.
Brian Niccol took over leadership responsibilities in September after Laxman Narasimhan, Schultz’s chosen successor, was ousted. Following a challenging start to the year, Starbucks shares have rebounded, increasing nearly 20% since early April and approaching $95.30, gaining momentum after Niccol’s appointment sparked a nearly 25% stock jump in the immediate aftermath.
Although Schultz stepped down as CEO in 2022 after a brief interim term, he remains a valued voice within the organization and continues to contribute insights. While he does not maintain a formal position, he has the right to attend board meetings unless otherwise restricted. In an earlier statement, Schultz highlighted the necessity for Starbucks to return to its core values and improve its overall operations.
Niccol’s leadership is marked by a commitment to revitalize the brand, which includes restoring familiar cafe features and refining marketing strategies that emphasize the quality of Starbucks coffee rather than discount promotions. In his inaugural week, he penned an open letter that expressed a vision for bringing the company back to its foundational principles, which resonated with many employees and stakeholders alike.
The Leadership Experience also marked the first public engagement between Schultz and Niccol since the latter’s appointment, showcasing a united front as they tackle the challenges ahead. Schultz’s strong support for Niccol indicates a strategic alignment aimed at not only improving financial performance but also nurturing Starbucks’ distinctive culture.
In the wake of Narasimhan’s brief tenure, which was marred by disappointing earnings reports, Schultz did not hesitate to voice his criticisms on social media, emphasizing the urgency for improvements in customer experience and product innovation. He pointed out that the difficulties Starbucks faces extend beyond operational issues to encompass a diminished appreciation for the company’s cultural values.
“The culture was not understood. The culture wasn’t valued. The culture wasn’t being upheld,” Schultz remarked, shedding light on what he perceives as fundamental issues impacting Starbucks. As Schultz’s involvement continues, many will be watching closely to see how Niccol implements his vision for renewed growth and cultural integrity at the iconic coffee chain.
