Business

Schultz supports new CEO – Starbucks focuses on refocusing and expansion

Starbucks aims to regain the trust of customers and investors with new leadership, a product offensive, and café modernization.

Eulerpool News Jun 16, 2025, 11:43 AM

Starbucks founder Howard Schultz has publicly backed the new CEO Brian Niccol, sending a clear signal to investors and employees. At an internal conference in the USA in front of about 14,000 store managers, Schultz stated he had "never felt so much optimism for the company's future as today.

Schultz, who stepped down from his last CEO role in 2023 and subsequently also left the board, commented more extensively for the first time since Niccol's appointment as the new head of the coffee chain. Niccol came from Chipotle Mexican Grill last year and replaced Laxman Narasimhan, whose leadership style was increasingly questioned internally – including by Schultz himself, who was originally involved in his selection.

A central element of Niccol's strategy is a return to the brand's core competencies: high-quality coffee products, inviting café atmosphere, and more efficient operations. Starbucks is currently reviewing its store network in North America to close unprofitable locations and expand profitable ones more strongly. In this context, the company announced that it intends to open 10,000 new stores in the region in the long term.

Another package of measures concerns personnel management: Starting in the fall, more full-time assistant managers will be deployed in U.S. branches to improve operational quality. In addition, Starbucks will test new products, including protein-enriched drinks and freshly baked croissants. The Frappuccino line will be expanded with new flavors such as "Brown Sugar Strato" - just in time for the 30th anniversary of the iconic product.

In addition, Starbucks plans to restore the seating removed during the coronavirus pandemic. According to Niccol, around 30,000 seats were removed from the cafes in recent years – a cut that many customers felt was a loss. The return of furniture is now expected to enhance the visitor experience.

Schultz was enthusiastic about Niccol's vision, which he praised as "brilliant and to the point." He "jumped around the living room" when he first heard about the "Back to Starbucks" strategy. That is exactly the direction the company needs now.

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