China Food

Today, Starbucks announced the change of command, and the founder “came out” again!

This evening, Beijing time, Starbucks, the world’s largest coffee chain, suddenly announced a change of command. This time, the “familiar face” came back to pick the beam, and he only received a symbolic salary of $1. Xiaoshidai noticed that the company announced this major leadership transition in a notice issued on its official website. Kevin Johnson, President and CEO of Starbucks, retired after 13 years in office, and the selection of CEO successor led by Starbucks board of directors is in progress, Howard Schultz, who has been behind the scenes for a long time, will return to Starbucks as interim CEO until the new leader joins. Next, snack generation will take you to pay attention to it for the first time.


Sudden change of command

Just next month, the current CEO of Starbucks will officially “hand over the stick”.

Starbucks said today that Kevin Johnson, President and CEO, plans to retire. He has served in the company for 13 years, including the past five years. Johnson will hand over his current position on April 4, 2022 and will continue to serve as a Starbucks partner (i.e. employee) and a special adviser to the company and the board of directors until September. Meanwhile, the successor of Starbucks CEO has not been finalized yet and is expected to be “released” before the autumn. Therefore, Howard Schultz, the “soul man” and founder who has been in charge of Starbucks for many years, will return briefly again. “Since 2021, with the assistance of Russell Reynolds associates, the Starbucks board of directors has been continuously promoting the CEO succession plan and is expected to elect a new leader by the fall.” Starbucks said in a briefing tonight.

The company said that in order to ensure seamless management of the company before appointing a fixed successor, the board of directors has appointed Howard Schultz as interim CEO with effect from April 4, 2022. Schultz will also rejoin the company’s board of directors.

“On behalf of the entire board of directors, I would like to express my most sincere thanks to Johnson for leading Starbucks. He and the entire executive team came forward to meet the challenges of the epidemic and led the company through one of the most difficult periods in modern history. The financial security provided to partners during the first few months of the epidemic and the period of forced isolation highlighted our core values and Will become the spirit of the company. ” Said melody Hobson, chairman of Starbucks’ independent board of directors.

Hobson also pointed out today that during Johnson’s tenure, Starbucks expanded its industry-leading digital operation, covering nearly 45 million members of Starbucks club in the United States and China.

Comment on Johnson


Starbucks commented today that in terms of the company’s rich heritage, Johnson has established the frameworks of “people positive”, “planet positive” and “profit positive”, aiming to create a better world for Starbucks partners, farmers, customers and the communities they serve.

“He expanded the company’s influence through the global coffee alliance with Nestle, which currently operates in nearly 80 markets. He also developed and implemented a growth at scale agenda, which significantly improved shareholder value.” Starbucks said.

Kevin Johnson, CEO of Starbucks

“A year ago, as the epidemic came to an end, I sent a signal to the board that I would consider retiring from Starbucks. I think this is a natural end after 13 years of working in the company.” Johnson said, “I enjoy every minute of my work and am proud of our common achievements. I am honored to work for 400000 Starbucks green apron partners around the world, and I want to thank them for their service, tenacity and optimism.”

“During my transition, we were lucky that the founders were able to intervene temporarily to give the board time to further explore potential candidates to make the right decision on the appointment of a long-term successor to the company.” Johnson said.

According to Starbucks, the board of directors has set up a working committee to supervise the CEO selection process. The selection is “in progress and is generating a strong list of candidates”.

Howard Schultz (online)

Schultz regression

According to the briefing, Schultz volunteered to serve as the interim CEO of Starbucks and will receive a salary of $1.

“As the founder and cultural builder of the company, the Board believes that Schultz is fully qualified to serve as interim CEO until a new leader is determined.” Starbucks said that in addition to the company’s daily management, Schultz will also participate in the CEO selection process and help the handover of the next CEO.

Hobson said today that for 50 years, Starbucks has been committed to exceeding the expectations of employees and customers while providing first-class financial performance.

“In the process of the company’s response to the challenges of the post epidemic and the socio-economic challenges affecting the lives of all our shareholders, Howard will strengthen the company’s culture, emphasize the organization’s commitment to innovation, and implement our core objectives and original intention of existence: inspire and nurture the humanistic spirit – everyone, every cup, every community.”

Starbucks commented in its briefing today that Schultz has built Starbucks into “one of the most recognized and respected enterprises” in the world, a company committed to strengthening the community through social networking and innovation. Under his leadership, from 1987 to 2018, Starbucks grew from 11 stores with 100 partners to more than 28000 stores in 77 countries.

“As CEO, he redefined the roles and responsibilities of listed companies and initiated projects such as comprehensive health care, stock ownership, free college for full-time and part-time employees. During Schultz’s tenure, Starbucks’ share price rose by 21000% from its initial IPO in 1992 to his resignation as executive chairman in 2018.” The company said.

“When you embrace love, you will have a strong sense of responsibility to help when called. Although I have never planned to return to Starbucks before, I know that the company must transform again to meet a new and exciting future so that all our shareholders can share prosperity.” Schultz said.

According to the briefing, as an interim CEO, Schultz will focus on developing an innovation framework and lead the induction and guidance of Starbucks’ next permanent CEO.

“Our success is not taken for granted. We must continue to win the trust of our employees and customers every day, which depends on how we provide the Starbucks experience, how we treat each other, and how we are a responsible community member and corporate citizen. In the context of the recovery of the epidemic and global turmoil, it is crucial that we be ready to serve us Our partners and customers bravely reconstruct and reshape the Starbucks experience of the future. ” Schultz said.

Hobson and Johnson will provide shareholders with more up-to-date information at Starbucks’ 2022 annual shareholders’ meeting later today. Snack generation will continue to pay attention.

Relationship between two people


After checking the information on behalf of snacks, Schultz last announced his resignation as CEO on December 1, 2016. At the age of 63, he said he would focus on developing high-end coffee business in the future. The news triggered a sharp intraday fluctuation in Starbucks’ share price of more than 10%.


At that time, Starbucks said that Schultz would then focus on innovation, design and development of Starbucks coffee baking workshops around the world, expand the style of its retail stores and Starbucks’ social influence. At the same time, Schultz will continue to serve as chairman of the company.


Schultz served as his first CEO of Starbucks from 1987 to 2000. After that, the company expanded too much and was impacted by the financial crisis. He returned as CEO in 2000.


In the shift handover announced in 2016, Kevin Johnson, then president and chief operating officer of Starbucks, took over the job. Schultz praised him for joining the Starbucks board of directors for seven years, being his partner and operating various businesses of the company on the chief operating officer.


Johnson said when he took office that he would keep Starbucks in a leading position in all coffee fields, strengthen the partner experience and exceed the expectations of customers and shareholders. Johnson took over the job and was interpreted by Wall Street as a signal of Starbucks’ transformation, mainly because of his unique background.


Johnson had no retail background before coming to Starbucks and was a typical cross-border. He had worked in the technology industry for 33 years, including 16 years at Microsoft and 5 years as CEO of Juniper Networks.


For the market concerns at that time, Schultz responded that he had to leave Starbucks, “I’m in the company every day”. According to him, he and Johnson’s office are connected.

Howard Schultz (left), Kevin Johnson (right)


Schultz also explained that this personnel arrangement will better enable Starbucks to handle future technological changes. He also pointed out that if physical retailers want to survive, they must evolve from physical space to where consumers go, such as the concept of Starbucks coffee baking workshop.


After taking over Shuai Yin, Johnson also quickly gave the “policy agenda”. He pointed out that he has “three innovation priorities”, including improving the store experience, developing the food and beverage business and digitization. “You must admit that consumers are embracing convenience”. During his tenure, he announced the reconstruction of the concept of “third space” of coffee shops proposed by Howard Schultz many years ago, and described digital space as “fourth space”.


According to Johnson’s later statement, Howard “gave support at every step” during his new command, and pointed out two examples, including “closing the chawana store” and dealing with the “alleged racial discrimination in a store in Philadelphia”.

Howard Schultz


In June 2018, Schultz, who left office with the speculation of running for the next president of the United States, made another major announcement: resignation from the chairman of the Starbucks board of directors. Schultz had often criticized trump, who was also a businessman, for “creating chaos every day”. However, the final historical trend is that he gave up the election in June 2019.


Later, Schultz’s news was more about investment. In July 2020, he joined oatly milk brand. Last April, the Starbucks founder became one of the new investors in wiz, an Israeli cybersecurity startup.


In addition, he published a new book called “start from scratch”. The book revealed that in 1987, Starbucks in six stores encountered financial problems. The founder found him and hoped he could buy Starbucks. Finally, with the help of Bill Gates Sr., a famous lawyer in Seattle and the father of the world’s richest man Bill Gates, he completed the acquisition of Starbucks with us $3.8 million.


Chinese market


Although it is not clear what impact Howard Schultz’s “coming out” will have on the Chinese market, it is certain that due to the importance of the Chinese business, Starbucks’s “leaders” have attached great importance to this fast-growing coffee market for many years.


“20 years ago, both inside and outside Starbucks believed that the Chinese market could not succeed.” Schultz said during a visit to China in 2018. He later said that in the next few years, the company would continue to open a new store every 15 hours in China.


In 2020, when talking about the Chinese team in an interview, Schultz said he wanted to attribute Starbucks’ success in China to its many talented and dedicated Chinese partners in China.


Statistics show that in January last year, Schultz also wrote a letter to the Chinese employees of Starbucks. In the letter, he said, “I hope that while China and the United States seek the basis for cooperation, we can build bridges between the two peoples, not high walls.”


As for Johnson, he also inherited Schultz’s idea of rapid expansion in the Chinese market and clearly pointed out that opening stores in China at high speed “will last for at least ten years”. Under his leadership, in 2018, Starbucks announced that the number of stores in the Chinese mainland market should be doubled to 6000 in the end of 2022, and 100 new city. China’s total market revenue will reach 3 times compared to the 2017 fiscal year, and the operating income will reach 2 times.


“China is the best market to practice innovation and create new store styles for other markets around the world.” Johnson once said to xiaoshidai. During his tenure, Starbucks launched many new actions in the Chinese market and experienced many major events, including the launch of the “special star delivery” takeout service, the opening of the Shanghai Zhenxuan coffee baking workshop, the challenge of the local coffee chain brand led by Ruixing, and the change of command in the Chinese market last year.


The last time Johnson talked about the Chinese market was in February this year. He pointed out that in the first quarter of fiscal year 2022 (from October 4, 2021 to January 2, 2022), Starbucks continued to expand the scale of stores, with more than 5500 stores in mainland China, which also made the company’s global number of stores reach a record 34317. “It is worth noting that our new generation of stores in China have continued to perform well and achieved first-class store profitability and return on investment.” He said.


He stressed that as long as the newly opened stores can continue to provide “first-class profitability and return on investment”, Starbucks will continue to rely on opening new stores to make a long-term layout of the Chinese market.

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