NEW STARBUCKS CEO PLANS TO WORK IN STORES ONCE A MONTH
Starbucks’ new CEO Laxman Narasimhan says he plans to work a half-day shift once a month in one of the company’s stores in an effort to stay close to its culture and customers.
Narasimhan, who took the reins as CEO earlier this week, said in a letter to Starbucks’ employees Thursday that he also expects the company’s leadership team to be connected and engaged in stores.
“While our performance is strong, our health needs to be stronger,” Narasimhan wrote in the letter. “We must care for the artists and the theater in the front of our stores and the factory in the back.”
Having a CEO work in stores is new for Seattle-based Starbucks, but not unprecedented among big companies. DoorDash CEO Tony Xu and his executive team make DoorDash deliveries once a month, for example.
Narasimhan, 55, issued the letter just prior to the company’s
annual meeting, which was held virtually. The former PepsiCo executive has spent the last six months immersing himself in Starbucks, earning his barista certification as well as visiting
stores, farms and manufacturing centers across the world.
“I felt it was very important to start as a barista. I wanted to really understand what they do and how they do it,” Narasimhan said in comments emailed to The Associated Press. “I’ve loved and learned so much about the retail experience from working in our stores, and can now make an excellent French press if I do say so myself.”
Narasimhan said his first priority is addressing some of the company’s limitations. A reinvention plan announced last fall is updating equipment and layouts to make stores more efficient and increasing employee retention with better pay and benefits, he said. The average U.S. Starbucks worker now makes $17.50 per hour.
Narasimhan said he would like to see Starbucks evolve into a more global company, be less wasteful and move with greater speed.
“My immersion provided me with exposure to every aspect of Starbucks business, culture, and brand,” he said. “Together, we have acknowledged the opportunity for a refounding of Starbucks.”