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Former Starbucks CEO suggests turnaround strategies

Former Starbucks CEO suggests turnaround strategies

Starbucks Turnaround Strategies

Howard Schultz, former CEO of Starbucks, has expressed concerns about the health of the company’s U.S. operations. He has suggested several turnaround strategies to counteract the ongoing downturn and stressed the importance of prioritizing customer needs.

During his nearly 25-year stint as CEO, Schultz championed the idea of moving beyond purely data-driven decisions. He called for deeper relationships with cafe staff and encouraged initiatives to enhance the in-store experience. Schultz underscored the power of personal connections between employees and customers, techniques he believes to be the key to Starbucks’s success.

Among the many suggestions Schultz advanced, the most prominent were the revisions to Starbucks’ mobile ordering and payment systems. He believes proper reforms will ensure the return of the delightful experience Starbucks is known for. Schultz also stressed the crucial role of coffee-related innovations and the introduction of advanced technologies to better customer engagement.

Schultz also emphasized reducing waiting times and improving service quality.

Starbucks’ former CEO outlines recovery strategies

He suggested continuously introducing new and exciting coffee options to keep the menu fresh. According to Schultz, these changes would establish Starbucks as a stalwart in the coffee industry and reinforce its dedication to customers, leading to heightened market share and profitability.

Even though Schultz resigned as Starbucks’ CEO in March 2023, he remains a considerable shareholder. The current CEO, Laxman Narasimhan, is tasked with steering the brand through these trying times. However, even under his guidance, the company reported dissatisfying earnings for the second quarter.

This year, Starbucks has faced numerous economic hurdles, including a sharp dip in same-store sales and a downgraded sales forecast. Sales in China, the company’s second-largest market, fell by 11%, contributing to the overall turbulence for Starbucks this year.

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Despite such setbacks, Narasimhan plans a comprehensive business recovery strategy focusing on improving the Starbucks app and streamlining mobile payment systems. He also intends to expedite service times and bring in new menu items. Schultz, in agreement, maintains optimism for Starbucks’ resilience, encouraging a return focus to its core offerings in the face of these challenges.

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