Howard Schultz Supports CEO Brian Niccol’s Strategy

Introduction to Starbucks’ Turnaround Strategy

Former Starbucks CEO Howard Schultz drinks from a Starbucks mug while testifying before a Senate Health, Education, Labor, and Pensions Committee hearing to answer questions about the company’s compliance with labor law on Capitol Hill in Washington.
LAS VEGAS, NEV. — Former Starbucks CEO Howard Schultz said Wednesday that he "did a cartwheel" in his living room when current chief executive Brian Niccol first coined his "back to Starbucks" strategy.

Enthusiasm for the New Strategy

The enthusiasm from the 71-year-old Starbucks chairman emeritus is a key stamp of approval for Niccol as he tries to lift the company’s slumping sales and restore the chain’s culture. Schultz, who grew Starbucks from a small chain into a global coffee giant, made a surprise appearance at the company’s Leadership Experience in Las Vegas and cosigned Niccol’s plans. The three-day event has gathered more than 14,000 North American store leaders to hear from Starbucks management as the company embarks on a turnaround.

Background on Niccol’s Appointment

Niccol took the reins in September, joining the company after the board ousted Laxman Narasimhan, Schultz’s handpicked successor. After a rocky start to the year, Starbucks shares have climbed nearly 20% since the beginning of April. They are now trading at around $95.30, just shy of where they closed on August 13, following a nearly 25% jump the day Niccol was named CEO.

Schultz’s Role and Involvement

Schultz had returned in 2022 for his third stint as chief executive, but it was only an interim role. He previously told CNBC that he has no plans to come back again. Schultz no longer holds a formal role within the company, although he’s forever entitled to attend board meetings unless barred by the company’s directors. Schultz was once one of the company’s largest shareholders, but he sold his Starbucks holdings sometime between the end of 2024 and early 2025.

Details of the Turnaround Plan

During Niccol’s first week on the job, he outlined plans for the comeback in an open letter, making the commitment to get "back to Starbucks." More details on how the chain planned to return to its roots followed in the ensuing months, from bringing back seating inside cafes to writing personalized messages on cups. Under Niccol’s leadership, the company’s marketing has shifted to focus on its coffee, rather than discounts and promotions.

Public Appearance and Statement of Support

When Starbucks announced Narasimhan’s firing and Niccol’s hiring, Schultz issued a statement of support, saying that the then-Chipotle CEO was the leader that the company needs. However, the Leadership Experience marks the first time that Niccol and Schultz have appeared publicly together. During Narasimhan’s short tenure as CEO, Schultz did not mince words when the company’s performance fell short of his expectations.

Assessment of the Company’s Problems

But Schultz said Starbucks’ problems went further than just operational issues and lackluster beverages and food. "The culture was not understood. The culture wasn’t valued. The culture wasn’t being upheld," he said on Wednesday.

Conclusion

The appearance and statement of support from Howard Schultz are significant for Brian Niccol’s turnaround strategy. With Schultz’s endorsement, Niccol’s plans to restore the company’s culture and improve sales may gain more traction. The success of this strategy will be crucial for Starbucks’ future growth and profitability.

FAQs

Q: Who is the current CEO of Starbucks?
A: Brian Niccol is the current CEO of Starbucks.
Q: What is the "back to Starbucks" strategy?
A: The "back to Starbucks" strategy is a plan outlined by CEO Brian Niccol to restore the company’s culture and improve sales by focusing on its core values and products.
Q: What was Howard Schultz’s reaction to the new strategy?
A: Howard Schultz said he "did a cartwheel" in his living room when he heard about the "back to Starbucks" strategy, indicating his enthusiasm and support for the plan.
Q: What are some key elements of the turnaround plan?
A: The plan includes bringing back seating inside cafes, writing personalized messages on cups, and shifting the company’s marketing focus to its coffee rather than discounts and promotions.
Q: How has the company’s stock performed since Niccol’s appointment?
A: Starbucks shares have climbed nearly 20% since the beginning of April, trading at around $95.30.