Starbucks founder Schultz says company needs to refocus on coffee as sales struggle

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Former Starbucks CEO Howard Schultz says the company’s leaders should spend more time in stores and focus on coffee drinks as they work to turn around flagging sales

Former Starbucks CEO Howard Schultz says the company’s leaders should spend more time in stores and focus on coffee drinks as they work to turn around flagging sales.

In a LinkedIn post published over the weekend, Schultz said many people had reached out to him after Starbucks reported weaker-than-expected quarterly sales and earnings last week.

The Seattle coffee giant said revenue dropped 2% in the January-March period as store traffic slowed around the world. It was the first time since 2020 that the company saw a drop in quarterly revenue. Starbucks also lowered its sales and earnings guidance for its full fiscal year.

Schultz, who bought Starbucks in 1987, is credited with growing the company into the global behemoth it has become with nearly 39,000 stores worldwide. He has been the chairman emeritus of the company since last fall, when he stepped down from Starbucks’ board.

Schultz remains Starbucks’ largest individual shareholder, holding shares that were valued at $1.5 billion at the end of last year.

In his post, Schultz said senior leaders – including board members – need to spend more time talking to baristas in the company’s stores.

“I have emphasized that the company’s fix needs to begin at home: U.S. operations are the primary reason for the company’s fall from grace,” he said. “The stores require a maniacal focus on the customer experience, through the eyes of a merchant. The answer does not lie in data, but in the stores.”

Laxman Narasimhan, who became Starbucks' CEO last spring, has been working a half-day shift in Starbucks stores once a