New CEO takes reins at Starbucks – 12 days early

The torch has been passed a little earlier than expected. 

Laxman Narasimhan, who joined Starbucks as incoming CEO on Sept. 1, 2022, has officially taken as chief executive, effective Monday, March 20, 2023. Narasimhan, who was initially slated to take the reins from interim CEO Howard Schultz (who previously served as CEO of Starbucks from 1986 to 2000 and then again from 2008 to 2017 before agreeing to serve as interim chair in April 2022) on April 1, 2023.

By taking over the position nearly two weeks earlier than expected,  Narasimhan will lead Starbucks'  annual shareholder meeting on Thursday, where he will make his first official remarks as the company's CEO.

Prior to joining Starbucks, Narasimhan served as the CEO of Reckitt, a multinational consumer health, hygiene and nutrition company, where he led the company through a major strategic transformation and a return to sustainable growth. (He stepped down on Sept. 1, 2022.)  

Previously, Narasimhan held various leadership roles at PepsiCo, including as global chief commercial officer, where he was responsible for the company’s long-term strategy and digital capabilities.  Prior to that, he was a senior partner at McKinsey.

During the transition period, Narasimhan was fully immersed in Starbucks, spending time with Schultz and the management team, employees and customers and gaining in-depth exposure to the brand, company culture, and “reinvention” plan, the company said.   The immersion experience included traveling to work with employees in over 30 stores, manufacturing plants and in support centers around the world. He also earned his barista certification.

Narasimhan takes over at Starbucks about a month after the retailer reported first-quarter earnings and sales that just missed analysts’ expectations as its results were weighed down by dismal results in China. However, net sales rose 8% to reach an all-time high of $8.71 billion, just missing expectations of $8.79 billion.  He also takes over a little more than a week before Schultz is scheduled to testify before a Senate committee regarding Starbucks' treatment of union organizing efforts.

On what was likely his last earnings call as Starbucks CEO, Shultz hinted at an Italian-inspired “game-changer” that will be making its way soon to the coffee chain and it’s bigger than any new promotion or beverage.” He gave no other details except to say that he discovered “an enduring transformative new category” during a trip to Italy last summer.

“Starbucks truly has been my life‘s work – but more than that, it’s always been about the lives of the millions of partners over the years who have proudly worn the green apron and it’s about the hundreds of thousands more who will join Starbucks in the years to come,” Shultz shared a letter to the company’s senior leadership team on the eve of the announcement – viewable here. “It’s about every customer who comes through our doors. It’s about the communities our stores call home. Our company is like a river – the stewards of it will change over time, but it’s always growing and changing, carving a new path and moving forward to something better.”

“I am humbled to officially step into my role as Starbucks chief executive officer, leading our incredible team of more than 450,000 green apron partners around the world. The foundation Howard has laid – building from scratch an iconic global brand fueled by a lasting passion to uplift humanity – is truly remarkable, and I am honored to have the opportunity to build on this deep heritage,” said Narasimhan. “As a human connection business, we have limitless possibilities to deliver for our partners, our customers, our investors and our communities through every cup and every connection. I am excited to work alongside our partners worldwide to unlock the limitless future of Starbucks.”

Headquartered in Seattle, Starbucks operates more than 36,000 stores worldwide.