Howard Schultz, coffee chain Starbucks‘ CEO, will delegate a few day-to-day activities in order to focus on the company’s overall strategy and the development of a premium branch within the group.
Slower growth
Starting 1 September, Starbucks CEO Schultz will mainly focus on the group’s premium segment, like the further Roasteries expansion – a chain of high-end coffee stores, first launched in 2014. On the other hand, it will also put more effort into Reserve Stores, where Starbucks mainly serves more expensive coffee.
The decision to turn the attention to the premium market follows on the back of slower worldwide growth for Starbucks. Over the past year, like-for-like turnover growth in the Americas only reached 4 %, down 50 % compared to the year before. Growth is also slowing down in other markets.
Management shift
As Schultz will take on new tasks, several other managers will now focus on other aspects of the business. Starbucks COO, Kevin Johnson, will now also take control of the senior management team.
Cliff Burrows, currently responsible for all of Starbucks American activities, will lead a new team that has to focus on the expansion of Roasteries, Reserve Stores, Princi and Teavana. He himself will focus on growth, while Schultz will work on these chains’ customer experience.
