Howard Schultz Wants Starbucks To Fix Its U.S. Business

Former Starbucks CEO Howard Schultz might have left the coffee giant several months ago, but he’s still offering critiques of the company he ran for about 25 years over three stints, Jordan Valinsky reported for CNN.

Schultz suggested that Starbucks “reinvent” the app’s mobile ordering and payment to “once again make it the uplifting experience it was designed to be.” I Photo: Business Wire

Following the release of Starbucks’ dismal earnings, Schultz wrote on his LinkedIn account that he was asked by “people inside and outside the company” about his thoughts that the chain’s US operations are the “primary reason for the company’s fall from grace” and encouraged executives to spend more time with its cafe employees.

“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,” Schultz wrote. He suggested that Starbucks “reinvent” the app’s mobile ordering and payment to “once again make it the uplifting experience it was designed to be.”

He also perhaps took a slight dig at Starbucks’ current offerings — like its new lineup of spicy drinks — and said its strategy needs to be “elevated with coffee-forward innovation that inspires partners, and creates differentiation in the marketplace, reinforcing the company’s premium position.”

Same-store sales in the US fell 3%, a sharp reversal from the same quarter a year ago, when they grew 12%.

In China, the chain’s second-largest market, sales fell a staggering 11%. Shares of Starbucks are down more than 20% for the year. Schultz stepped down from Starbucks’ board of directors last September.