- 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, mentioned there isn’t any 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 dealing with slumping gross sales, decreased site visitors, and one thing of an id disaster.
However the current rollout of his new back-to-basics technique has earned the help 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 whole religion in Niccol taking the helm of the worldwide espresso chain — although he is at all times obtainable to supply the brand new CEO recommendation or steerage.
Niccol has massive footwear 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 large’s fast growth. He first grew to become Starbucks’ CEO in 1986 earlier than leaving in 2000. He returned to the position throughout 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 areas worldwide.
Niccol’s first earnings name, held October 30 for the corporate’s This fall outcomes, included numbers indicating that Starbucks continues struggling to get prospects within the door — with site visitors declining throughout all distribution channels and income down 3% from the prior 12 months. The corporate’s inventory can be down greater than 3% in comparison with final 12 months right now.
Throughout the This fall 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 mentioned the corporate will convey 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 isn’t any 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.
