New Starbucks CEO Brian Niccol wants the brand to focus on "elevating the in-store experience" to feel like "a gathering space, a community center where conversations are sparked and friendships form." It's a sign of the times as people crave connection (including from physical stores) amid a loneliness epidemic.
In a way, all of Starbucks' recent CEOs — the position has changed hands four times since 2008 — have similarly reflected their eras' economic ebbs, flows, and trends du jour.
Howard Schultz: The C-Suite Rock Star
Back when Schultz purchased Starbucks in the late 1980s, few Americans considered coffee a gourmet beverage. It was just bitter energy water in a Styrofoam cup that cost 50 cents. Stirred was as acceptable as brewed.
Schultz's marketing brilliance was to associate coffee with an ascendant upscale (one might say "yuppie") sensibility of conspicuously consuming the finer things. He emphasized high customer-experience standards and rapid expansion, putting a then-novel idea — espresso shots as attainable status symbols — on the map. Laptop computers also grew in popularity by the mid-'90s, and Starbucks provided an ideal space in which to use them.
Schultz left the company in 2000 but returned in 2008 at another moment of social and technological change. The Great Recession threatened Starbucks' entire business model, as consumers cut back on discretionary purchases. Schultz, however, saw potential in the emerging smartphone market, launching the Starbucks app to lure customers back with deals and promotions.
Like Steve Jobs, Schultz represented an era of charismatic CEOs who could be equal parts big-picture visionary and cult-of-personality micromanager in a way that wouldn't quite fly today.
Kevin Johnson: The (Literal) Bean Counter
From 2019 to 2022, Johnson — formerly Starbucks' COO, mirroring Apple's Tim Cook — focused on supply-chain partners, international expansion, and further integrating mobile technology. He also drove Starbucks toward greener operations and anti-bias training as pressure mounted on companies to meet ESG standards and engage with social movements, which has notably lessened in the past year or two.
Johnson also successfully guided Starbucks through COVID. In an era of inflation and unaffordability, however, he faced both backlash for alleged attempts to stall unionization efforts and scrutiny of his own compensation.
Laxman Narasimhan: The Unlucky Scapegoat
Like Bob Chapek at Disney and many other CEOs who faced post-COVID wrath, Narasimhan — previously chief of Lysol and Mucinex's parent company — never had a chance, lasting only 18 months at Starbucks.
He earned initial goodwill by training as a barista. However, supply-chain issues, plummeting stock value, battles with activist investors, weakening overseas sales, and an insistence on work-life balance (Narasimhan preferred not to be on call after 6 p.m.) led to his immediate ouster. Wrong place, wrong time — much like the wrong name on a coffee cup.
Brian Niccol: The Turnaround Wiz
In 2024, Niccol — who led successful pivots at Chipotle and Taco Bell — wants a return to Starbucks' customer-experience roots, just as brands such as McDonald's, Burger King, and Wendy's are trying to win back customers who have tapped out due to perceived higher prices for lower quality.
Also very 2024? We know where Niccol stands on the remote work debate. He'll be flying from Newport Beach to Seattle thrice weekly and working remotely for the rest. Gonna need a venti Oleato Golden Foam for that commute.
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