Former Starbucks CEO Howard Schultz has some words for the company he once led.
While commenting on the company’s disappointing quarterly results, Schultz said the coffee chain needs to improve the experience in its U.S. stores. In a post Sunday evening on LinkedIn, the former chairman, who resigned three times as CEO, said he didn’t need ties to the company to care about its success.
“I emphasized that the company’s solution must start domestically. U.S. operations are the primary reason for the company’s fall from grace. Stores require a maniacal focus on the customer experience, through the eyes of a trader,” Schultz said. “The answer lies not in data, but in stores.”
The coffee giant missed Wall Street analysts’ estimates for quarterly profit and revenue following a decline in same-store sales. The company’s shares have fallen 17% since the earnings report was released last week, closing at $72.90 on Monday.
Schultz urged the company to reinvent its mobile ordering and payment platform, launched in 2015, into “the inspiring experience it was designed to be.” Additionally, he called on executives to review their “go-to-market strategy” and drive coffee-focused innovation to create market differentiation.
The chain plans to revamp experiences in its stores
In February, Starbucks announced plans to improve the in-store experience through technology renovations at its new U.S. locations and approximately 1,000 renovated locations.
Improvements include sound-damping baffles in the ceilings that reduce noise inside its stores. These foams will help minimize noise and reverberations, thereby improving service for customers with assisted listening devices, the chain said.
The company will also add adjustable lighting in the form of dimmers and electric screens on exterior windows to reduce glare and shadows during the day.
“The new acoustic and lighting features help create a more enjoyable and inclusive auditory and visual experience for guests and partners,” the chain said in a statement to USA TODAY last month.
Related:Union struggle at Starbucks: the Supreme Court prepares to support the company in the “Memphis 7” union case
Schultz leaves the board in 2023
Schultz joined Starbucks as director of operations and marketing in 1982. He first became CEO in 1987 after temporarily leaving the company.
In 2000, he retired for the first time as CEO and became president of the company. He then returned as CEO in 2008 amid the recession and left the position a second time in 2017. In 2018, he returned as interim CEO and was named a board member in 2022 .
Last year, he left the board and became CEO again.
More:Following historic union vote at Volkswagen, Starbucks asks Supreme Court to curb worker power
“I have not held any formal role within the company since April 2023. But my love for the company and for all those who wear ‘the fabric of the company’ – the iconic green apron – knows no end. limits,” Schultz wrote.
News Source : www.usatoday.com
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