STARBUCKS Corp co-founder Howard Schultz will step down as chief executive to focus on new high-end coffee shops, handing the top job to chief operating officer Kevin Johnson, a long-time technology executive.
Mr Schultz, who will become executive chairman in April 2017, said he would focus on building ultra-premium Reserve stores and showcase Roastery and Tasting Rooms around the world as well as setting the brand’s “social impact agenda” that includes sending employees to college and recruiting veterans.
Starbucks had signaled the change in July, but its shares fell 3.6 per cent to $US56.41 ($F117) in extended trading on Thursday, as investors recalled the company’s decline after Mr Schultz handed over the reins in 2000. He returned in 2008.
“Having him step down as CEO raised the anxiety level,” said Stephens analyst Will Slabaugh, who said that Mr Schultz was the heart and soul of the brand, its entrepreneurial leader and its savior.
“We’re in a much better position on every level,” said Mr Schultz, who returned for his second stint as CEO in the depths of the “Great Recession,” when Starbucks’ stock was trading below $US10 ($F20). Late last year, it hit an all-time high above $US60 ($F120). Mr Schultz has put Starbucks in the national spotlight, asking customers not to bring guns into stores and urging conversations on race relations.
