- Starbucks’ ex-CEO, Howard Schultz, instructed Fortune he trusts successor Brian Niccol to revitalize the corporate.
- Niccol plans a back-to-basics technique because the espresso chain faces low gross sales.
- Schultz, who served three stints as CEO, stated there is no probability he’ll reprise his position once more.
Brian Niccol knew when he took over in September as the brand new CEO of Starbucks that the corporate was going through slumping gross sales, decreased visitors, and one thing of an id disaster.
However the current rollout of his new back-to-basics technique has earned the assist of 1 man who is aware of one thing about steering the beloved coffeehouse model to success: Howard Schultz.
Schultz, the chairman emeritus and former CEO of Starbucks, instructed Fortune in an interview that he has complete religion in Niccol taking the helm of the worldwide espresso chain — although he is all the time accessible to supply the brand new CEO recommendation or steering.
Niccol has large sneakers to fill as he steps in for Schultz, who has been described because the “Ray Kroc of his era” for his position within the espresso big’s fast enlargement. He first turned Starbucks’ CEO in 1986 earlier than leaving in 2000. He returned to the position through the 2008 monetary disaster, departing once more in 2017. In 2022, he got here out of retirement to function interim CEO of the corporate. Throughout his on-again, off-again tenure, Schultz grew the chain from 11 shops to 35,000 places worldwide.
Niccol’s first earnings name, held October 30 for the corporate’s This autumn outcomes, included numbers indicating that Starbucks continues struggling to get prospects within the door — with visitors declining throughout all distribution channels and income down 3% from the prior 12 months. The corporate’s inventory can also be down greater than 3% in comparison with final 12 months right now.
Through the This autumn name, Niccol laid out his plan to get Starbucks “again to our core id and constantly ship a fantastic expertise” so “our prospects will come again.” He stated the corporate will deliver again its condiment bar so prospects can costume their very own coffees, and return to the Sharpie period the place baristas hand-wrote buyer names on their iconic white and inexperienced cups.
Although Schultz has twice earlier than left after which returned as CEO of Starbucks, he instructed Fortune there is no probability he’ll reprise his position once more.
Representatives for Starbucks and the Schultz Household Basis, of which Howard Schultz is a cofounder, didn’t instantly reply to requests for remark from Enterprise Insider.
