Former Starbucks CEO Howard Schultz is urging the coffee chain to make significant changes to its US operations in order to combat declining sales. In a lengthy essay posted on LinkedIn, Schultz emphasized the importance of focusing on the customer experience and merchant perspective.
Schultz, who left the board of directors last fall but remains a major shareholder in the company, pointed out that lagging US sales were the primary reason for Starbucks’ recent decline. He recommended that executives spend more time with employees and reinvent the mobile ordering platform to improve overall customer satisfaction.
Current CEO Laxman Narasimhan has faced criticism over lackluster quarterly earnings, with challenges in inflation and a need for better communication of value to customers. CNBC’s Jim Cramer expressed concern and surprise over Starbucks’ recent performance, as the company’s shares fell to a two-year low.
Starbucks recently reduced its annual forecasts and reported a decline in net income, leading to a cut in sales outlook and a 2% drop in revenue for the latest quarter. The company is now under pressure to make necessary changes and regain its footing in the competitive coffee market.
With Schultz’s strong recommendations for operational changes and Narasimhan’s pledge to address current challenges, Starbucks is hoping to turn its fortunes around and once again become a leader in the coffee industry. Investors and customers alike are watching closely to see how the company responds to these recent setbacks.
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