Howard Schultz, the former CEO of Starbucks, shocked many by his unexpected presence at the company’s Leadership Experience in Las Vegas. His strategic vision helped turn Starbucks from a local coffee chain to the global coffee powerhouse it is today. Now 71 years old, Schultz still occupies a key position as the chairman emeritus of the company. He shares his thoughts on its overall direction and performance.
One thing nobody saw coming was Former CEO Schultz’s endorsement of current CEO Brian Niccol’s “back to Starbucks” strategy. His enthusiasm was contagious as he described plans for the initiative. The first time he ever heard Niccol lay out the plan, he was so ecstatic that he did a cartwheel in his living room! This new moment marks yet another expression of Schultz’s all-consuming passion for the brand that he helped develop into an international phenomenon.
Despite his enthusiasm for Niccol’s vision, Schultz did not shy away from critiquing the company’s performance during Laxman Narasimhan’s tenure as CEO. After an abysmal quarterly earnings report, he went on LinkedIn to warn about a potential impending disaster. Schultz thinks that if Starbucks wants to win at a larger scale, they need to better execute on mobile order and pay. He’s calling for a shift in the company’s beverage development pipeline, including greater emphasis on higher quality, premium items.
Schultz has not shied away from discussing his perspective on why Starbucks is struggling. He remarked, “The culture was not understood. The culture wasn’t valued. The culture wasn’t being upheld.” He argues that Starbucks suffers from deeper issues than bad management. While he believes that there are larger problems at play than their awful drinks and food offerings,
Although Schultz no longer holds a formal position within the company, he remains entitled to attend board meetings unless barred by directors. His most amazing long-term relationship may be the one with Starbucks. He used to be one of its biggest shareholders until he sold out during the end of 2024 or beginning of 2025.
Looking forward, we look forward to seeing Niccol’s execution of his strategy. It remains to be seen whether Schultz’s lessons learned will guide the company’s course, as the chain aims to navigate through these stormy waters ahead. Schultz has long claimed credit for creating an innovative and dynamic legacy of growth. His approval might be all it takes to help revive Starbucks’ reputation and renew its reign as the world’s coffee king.