Howard Schultz, the former CEO of Starbucks, recently shared his thoughts on the coffee chain’s disappointing quarterly report. Although Schultz no longer has an official role within Starbucks, he believes that the company can bounce back if it focuses on improving its U.S. stores.
One area of improvement that Schultz highlighted is the mobile order and pay experience. He emphasized the importance of prioritizing the customer experience and suggested that Starbucks should view its stores through the eyes of a merchant. Schultz believes that the answer lies in the stores themselves, rather than relying solely on data.
Starbucks recently faced a setback when it slashed its full-year forecast after experiencing a surprise decline in same-store sales. This unexpected decline caused the company to miss Wall Street’s estimates for quarterly earnings and revenue, resulting in a 17% drop in its shares and a decrease in market value to $82.8 billion.
Analysts have been scrambling to find an explanation for the 7% drop in Starbucks’ U.S. traffic during the quarter. One theory proposed by Bank of America Securities analyst Sara Senatore is that the chain may still be facing backlash on social media due to its stance on conflict in the Middle East.
Schultz, who played a pivotal role in transforming Starbucks into a global coffee giant, stepped down as CEO over a year ago and also resigned from the Starbucks board last year. Despite no longer holding an executive position, he offered advice to his successor, Laxman Narasimhan, urging him to model both humility and confidence as he works to restore trust and improve performance across the organization.
In an interview with CNBC a year and a half ago, Schultz made it clear that he has no plans to return as Starbucks’ chief executive. However, his insights and suggestions for improvement could prove valuable as the company navigates its current challenges and strives to regain its momentum in the market.
