Former Starbucks CEO Howard Schultz Calls for Revamp of U.S. Operations
Former Starbucks CEO, Howard Schultz, shares his thoughts on the current state of the coffee chain and emphasizes the need for improvements in its U.S. stores. Schultz, who has led the company multiple times, believes that the company’s decline is mostly attributed to its domestic operations rather than data-related issues.
After Starbucks fell short of Wall Street analyst estimates for quarterly earnings, its shares experienced a 17% decline. Schultz believes there is a need to reinvent the company’s mobile ordering and payment platform, as well as overhaul its go-to-market strategy in order to differentiate itself in the marketplace.
Raising the Customer Experience
According to Schultz, the key to Starbucks’ recovery lies in focusing on the customer experience. He stresses that a merchant’s perspective is crucial in accomplishing this and that data alone is not the solution. Schultz suggests the company’s operations need to undergo extensive improvements and reinventions in order to regain its previous success.
Plans for Store Enhancements
Earlier this year, Starbucks announced its plans to upgrade the experiences at its U.S. stores. Technological renovations have been introduced at the company’s new locations and approximately 1,000 renovated stores.
The enhancements include the installation of acoustic dampening baffles in the ceilings to reduce noise levels within stores. Starbucks has also introduced adjustable lighting features, such as dimmers and power screens on exterior windows, to minimize daytime glare and shadows. These improvements aim to create a more inclusive auditory and visual experience for customers and employees.
Schultz’s Impact on Starbucks’s Leadership
Howard Schultz has had a significant influence on Starbucks’s leadership over the years. Joining the company as the Director of Operations and Marketing in 1982, he first became CEO in 1987. He has retired and returned to the role multiple times, with his most recent departure from the Board of Directors occurring in 2023.
While Schultz currently holds no formal role within the company, he continues to express his love for Starbucks and the dedicated employees who wear the renowned green apron.
