New Chapter for Starbucks: Howard Schultz Steps Aside
Picture the bright white logo of a coffee beanie on a road less traveled. For fifty years the coffee giant has been intimately tied to Howard Schultz, the man who turned tiny Seattle cafés into a global empire. But on June 26, Schultz will hand over the reins, leaving the mantle firmly in the hands of Chief Executive Kevin Johnson.
Why This Move Matters
- Leadership vacuum alert: Schultz’s almost nightly advice to Johnson, especially in crisis moments, has been a safety net.
- Marketplace slowdown: Starbucks’ core U.S. growth is cooling, and competitors—ranging from high-end boutique shops to budget‑friendly fast‑food chains—are closing in.
- China expansion: The coffee giant is launching a massive rollout in China, a move that could make or break its future.
Johnson is no stranger to deals, coming from a tech background and now looking to Myron Ullman—an retail veteran—for guidance. Yet investors are asking: without Schultz’s steady hand, what’s next for the “Starbucks culture” he so carefully forged?
Analyst Take‑A‑Tee
Andrew Strelzik from BMO Capital Markets called the change “a perceived removal of the safety net,” and combined it with a sense of uncertainty at a time when the brand faces many challenges.
The Political Whispers
The news also reignited a rumor that Schultz might run for President of the United States. Douglas Kass, the hedge‑fund founder, said he’d bet against Starbucks shares because he believes Schultz could still pursue the 2020 Democratic nomination. Schultz himself, however, has consistently denied any political ambitions, even while hinting he’s open to “public service” in a recent CNN interview.
Schultz’s Legacy
He once turned the company from 11 cafés to over 28,000 shops in 77 countries—making even the humblest coffee drinkers feel like they’re indulging in a sophisticated latte. From stepping down as CEO in 2000 to returning in 2008 during the housing crisis, Schultz has been a relentless force.
- Strategic shutdowns: He shut down hundreds of underperforming stores to reset the brand.
- Social justice focus: In the wake of a controversial police incident in Philadelphia, he led anti-bias training for all employees.
- Premium push: Schultz oversaw the launch of upscale Reserve stores and Roastery showrooms to prop up Starbucks’ coffee dominance.
Are We Saying Goodbye?
Bernstein analyst Sara Senatore noted Schultz is stepping away “when the brand’s VIP retail arm is still in its infancy.” Meanwhile, Tony Scherrer from Smead Capital Management cautioned that every time Schultz has tried to step back, he’s often ended up stepping back in again.
With his resignation from the board slated for June 26, the company will honor him as chairman emeritus. The stock, a little tugged down in extended trading, hovered around $56.64.
So, as the coffee world turns its attention to a shake‑up at the top, one thing’s clear: the next chapter for Starbucks will be penned by new leadership, but its coffee‑driven heart remains. And whether Schultz heads for the presidency or not, we’re sure the National Coffee League will make a special latte for him.
