Former CEO of Starbucks says stores must be ‘renovated’ after falling sales and warns that ‘there are no quick fixes’

The former CEO of Starbucks said the coffee chain must “renovate” its stores if it wants to remain competitive.

Howard Schultz, who served as CEO for more than 25 years, spoke amid the company’s significant drop in sales.

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Schultz gave his former employer his two cents after the company shocked investors with a decline in same-store sales during the last quarter.

Writing in a LinkedIn Postthe enigmatic former CEO said Starbucks leaders should connect with regular employees and understand how stores serve customers.

“Senior leaders – including board members – need to spend more time with those who wear the green apron,” he wrote.

“One of the first actions should be to reinvent the mobile ordering and payments platform – which Starbucks was pioneering – to once again make it the uplifting experience it was designed to be.”

Schultz also said the company needs to keep inventing new drinks and find ways to stand out from competitors.

“The market entry strategy needs to be reformulated and elevated with coffee-focused innovation that inspires partners and creates differentiation in the market, reinforcing the company’s premium position.

“Through it all, focus on being experiential, not transactional.”

Schultz added that “there are no quick fixes” and urged Starbucks leaders not to do anything drastic too quickly.

Senior leaders – including board members – need to spend more time with those who wear the green apron

Howard SchultzFormer CEO of Starbucks

“There’s a natural tendency to try to do too much too soon,” he said.

“Don’t try to do everything at once.”

STARBUCKS DISAPPOINTMENT

Schultz isn’t the only one who was disappointed with the numbers released during Starbucks’ latest earnings call.

CFO Rachel Ruggeri attributed the loss in profits to reduced spending from “one-time customers”.

She said Starbucks will prioritize accelerating service, adding discounts and introducing new products.

Food will also be used to attract more customers outside of peak morning hours.

WHO IS SCHULTZ?

Schultz served two terms as CEO of Starbucks, from 1986 to 2000 and from 2008 to 2017.

He returned in 2022 and served as interim CEO for a year, when the title was handed over to Laxman Narasimhan.

During his early years, Schultz was the one who convinced Starbucks bosses to start using espresso machines in stores, which was unusual in American cafes at the time.

He led the company all over the country expansion in the late 80s and early 90s, taking Starbucks public in 1992.

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