Howard Schultz Starbucks CEO (Wikipedia)
Howard Schultz, the founder and former CEO of Starbucks, criticized the company’s leadership and issued a list of suggestions that he thinks the world’s leading coffee provider should follow in order to recover from recent setbacks. Interestingly, Schultz chose to make the suggestions in an open letter that he released on LinkedIn.
AP reported that Starbucks’ revenue dropped 2% in the first quarter of 2024. The company reported a drop in same-store sales for the first time since 2020 and slashed its full-year sales outlook.
Howard Schultz said that the company’s “fix needs to begin at home: U.S. operations are the primary reason for the company’s fall from grace. The 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.”
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He also called on Starbucks’ senior leaders, including board members, to spend more time with those “who wear the green apron.” Schultz added that they should “reinvent” the mobile ordering and payment platform, “to once again make it the uplifting experience it was designed to be. The go-to-market strategy needs to be overhauled and elevated with coffee-forward innovation that inspires partners, and creates differentiation in the marketplace, reinforcing the company’s premium position.”
“There are no quick fixes,” said Howard Schultz. “But the path forward should be what has guided the company over decades of financial success: Inspire your people, exceed the expectations of your customers, and let culture and servant leadership lead the way.
Howard Schultz is a prominent figure in the business world, particularly known for his long tenure as the CEO of Starbucks. Schultz served as CEO of Starbucks for three separate periods: 1986-2000, 2008-2017, and most recently, an interim stint in 2022-2023. Under his leadership, Starbucks grew from a regional coffee chain to a global giant, transforming coffee culture worldwide.
Beyond Starbucks, Howard Schultz owned the Seattle SuperSonics basketball team from 2001 to 2006. He’s also involved in venture capitalism through his firm Maveron Capital.
