LAS VEGAS, NEV. — Howard Schultz, the former CEO of Starbucks, expressed his excitement on Wednesday by stating he “did a cartwheel” in his living room when current CEO Brian Niccol introduced his “back to Starbucks” strategy.
The 71-year-old Schultz’s enthusiasm serves as a significant endorsement for Niccol as he endeavors to rejuvenate the company’s declining sales figures and revive the chain’s foundational culture.
Schultz, who transformed Starbucks from a small chain into a renowned global coffee powerhouse, made a surprise visit to the company’s Leadership Experience event in Las Vegas, where he publicly backed Niccol’s initiatives. The three-day conference has attracted over 14,000 store leaders from North America to hear from Starbucks management as the company works toward a revitalization.
Niccol assumed leadership of Starbucks in September, following the board’s decision to replace Laxman Narasimhan, who was once considered Schultz’s chosen successor. After a challenging start to the year, Starbucks’ shares have surged nearly 20% since early April, now hovering around $95.30, close to their value as of August 13, following a more than 25% spike on the day Niccol was appointed CEO.
Schultz returned to the helm of Starbucks for a third time in 2022, albeit in an interim capacity. He has previously conveyed to Finance Newso that he does not intend to return for a permanent role. While Schultz does not hold an official position with the company now, reports indicate he has the right to attend board meetings unless prohibited by current directors.
In his initial week as CEO, Niccol shared his vision for the company’s comeback in an open letter, asserting a commitment to the “back to Starbucks” approach. Subsequent announcements revealed strategies to restore the essence of the brand, including reinstating seating in cafés and adding personalized messages on cups. Niccol’s leadership has also steered the marketing focus back to Starbucks’ coffee offerings instead of relying on discounts and promotions.
When Starbucks disclosed the firing of Narasimhan and the hiring of Niccol, Schultz publicly endorsed the latter, stating that the former Chipotle CEO was the leader necessary for the company’s advancement. The Leadership Experience represents the first public appearance of both Niccol and Schultz together since the transition.
During Narasimhan’s brief tenure, Schultz candidly criticized the company’s performance, particularly following disappointing quarterly earnings. In a public statement on LinkedIn, he emphasized the importance of enhancing the mobile ordering experience and revamping the beverage creation process to prioritize premium products that distinguish the brand.
Schultz articulated that the challenges facing Starbucks extended beyond mere operational shortcomings or uninspiring food and beverage options.
“The culture was not understood. The culture wasn’t valued. The culture wasn’t being upheld,” he stated during his remarks on Wednesday.
— Finance Newso’s Tom Rotunno contributed to this report
