Fans will receive something “far bigger than any new campaign or beverage,” according to the departing CEO (this is his third time in the position).
America’s first Italian-style cafe was introduced by Howard Schultz. Starbucks (SBUX) – Get Free Report was just a roastery when he took control, selling just coffee beans and not even the beverage by the cup.
Schultz not only introduced espresso-based drinks like cappuccinos, macchiatos, lattes, and other classics to Americans during his tenure as the company’s CEO. He also altered the definition of what coffee is, which was a little more contentious.
By incorporating flavouring syrups and other technological advancements, such as cold foam, Schultz made coffee more widely available. Under Schultz, Starbucks innovated in areas well beyond coffee. It invented the Frappuccino, a frozen drink that, although being produced with ice, managed to maintain the velvety texture of coffee with milk or cream.
Schultz increased the popularity of coffee (or coffee-like) drinks, resulting in the presence of Starbucks locations around the country, often even two across the street from one another in larger cities.
Now, as he gets ready to hand Laxman Narasimhan the CEO position for a third (and likely final) time, Schultz has promised followers of the company one last big surprise.
When Schultz last resigned his position as CEO of Starbucks, he actually transitioned into an executive chairman position. It was envisioned that he would continue to be active, assisting the business in developing Roastery and Premier outlets to further establish its premium brand.
Sadly, Starbucks’s new CEO Kevin Johnson didn’t think the company should be making significant investments there. He preferred to concentrate on the chain’s operations and increase its efficiency.
When Starbucks was able to switch to a delivery, drive-through, and pickup model when its drive-throughs were closed during the epidemic, those measures proved to be foresightful. Johnson, on the other hand, abruptly “retired” in March 2022, which gave Schultz the opportunity to briefly return and probably choose a successor with whom he shares a similar vision.
Schultz won’t serve as executive chairman this time, but he will continue to serve on the board of directors. The chain’s supporters will also receive a farewell present from the long-serving, three-time CEO.
Starbucks has a long history in Italy, where it presently has hundreds of locations as well as a Roastery in Milan. Schultz claims that the nation has once again motivated him. During his final earnings call as CEO, he (sort of) discussed those plans (for now, at least).
Finally, despite the fact that Starbucks has introduced numerous popular coffee drinks over the years, he remarked, “My Starbucks journey will come full circle when I return to Milan later this month to introduce something much bigger than any new promotion or beverage.”
The departing CEO provided some details, but not many.
“Last summer, while travelling in Italy, I stumbled onto a long-lasting, revolutionary new category and platform for the business, unlike anything I had ever encountered. I would use the word alchemy to describe it without giving too much away “Added he. We won’t reveal the facts today, but they will change the game, so be ready.
Starbucks, a well-known coffee shop business, had 35,711 locations globally in 2022. There were more outlets abroad than in the United States, the country where the corporation was based.
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