Howard Schultz, the iconic former leader of Starbucks, has given a significant stamp of approval to current CEO Brian Niccol’s efforts to revitalize the coffee giant. Schultz expressed enthusiastic support for Niccol’s “back to Starbucks” strategy, reportedly reacting with a “cartwheel” upon hearing the plan.
The endorsement from the 71-year-old chairman emeritus is crucial for Niccol as he navigates challenging sales figures and works to restore the company’s unique culture.
A High-Profile Endorsement
Schultz, credited with transforming Starbucks from a small coffee chain into a global powerhouse, made a surprise appearance at the company’s recent Leadership Experience event in Las Vegas. Addressing over 14,000 North American store leaders, Schultz publicly backed Niccol’s strategic direction for the company’s turnaround. This marked the first time the two executives appeared together publicly.
Niccol assumed the chief executive role in September, following the ousting of Laxman Narasimhan, who Schultz had initially supported as his successor. While Starbucks faced a rocky start to the year, its stock has seen a positive trend recently, climbing nearly 20% since April and trading around $95.30 at the time of the original report.
Understanding the ‘Back to Starbucks’ Plan
Niccol outlined his vision for a comeback early in his tenure, making a public commitment to get the company “back to Starbucks.” Over the subsequent months, more details emerged, focusing on returning to core principles. Key aspects include:
Restoring the Cafe Experience: Encouraging a return to in-store seating and the traditional cafe atmosphere.
Personalized Connections: Bringing back personalized messages written on cups, a practice long associated with the brand’s unique customer interaction.
- Focus on Coffee: Shifting marketing efforts to emphasize Starbucks’ coffee products rather than relying heavily on discounts and promotions.
Schultz’s Perspective and Past Criticisms
Schultz, who had an interim third stint as CEO in 2022 but has stated he has no plans to return formally, no longer holds an official position within the company. While he was once a major shareholder, FactSet data indicates he is no longer among the largest holders, having sold shares between late 2024 and early 2025 according to that reporting.
Notably, Schultz has not shied away from public criticism when he felt the company was underperforming. During Narasimhan’s brief tenure, Schultz took to LinkedIn to voice concerns following a poor earnings report, advocating for improvements in mobile ordering, payment systems, and a renewed focus on distinctive, premium beverages.
However, Schultz emphasized that the company’s issues extended beyond just operational or product challenges. At the Las Vegas event, he stated, “The culture was not understood. The culture wasn’t valued. The culture wasn’t being upheld.”
His strong support for Niccol’s strategy suggests a belief that the current plan addresses these deeper cultural and directional challenges, aiming to steer Starbucks back to its foundational values and operational excellence. The public alignment between the two leaders underscores the company’s commitment to its planned turnaround.
