In May 2022, Starbucks Corporation announced that CEO Kevin Johnson would retire effective April 4, after 13 years with the company, including five as CEO. To guide the company through this transition, former CEO Howard Schultz returned as interim CEO. Schultz, who previously led Starbucks from 1986 to 2000 and again from 2008 to 2017, expressed his commitment to steering the company toward a new era of growth and innovation. The Starbucks Board of Directors initiated a search for a permanent successor, aiming to complete the process by the fall. Schultz’s return was seen as a strategic move to ensure stability and continuity during this period of change.
Johnson, who joined Starbucks’ board in 2009 and became president and COO in 2015, succeeded Schultz as CEO in 2017. Under his leadership, Starbucks navigated challenges such as the COVID-19 pandemic, during which the company experienced an 11% decline in sales in fiscal year 2020. However, revenues rebounded in the following year as the economy began to recover. Johnson’s tenure also saw the implementation of the “People Positive, Planet Positive, Profit Positive” framework, emphasizing sustainability and social impact.
Schultz’s interim return came at a pivotal time for Starbucks, as the company faced increasing unionization efforts among its baristas. In December 2021, a store in Buffalo, New York, became the first company-owned location to unionize, sparking similar movements nationwide. Schultz, known for his opposition to unionization, reached out to employees via email, seeking feedback and expressing a desire to address their concerns directly. He emphasized the need for Starbucks to transform and adapt to a new future where all stakeholders flourish.
The search for a permanent CEO concluded with the appointment of Laxman Narasimhan, former CEO of Reckitt Benckiser, who officially took over in March 2023. Narasimhan underwent a six-month immersion, including training as a barista, to understand the company’s operations and culture. However, his tenure was short-lived, as he stepped down in August 2024 for personal and family reasons. Brian Niccol, former CEO of Chipotle Mexican Grill, succeeded him in September 2024, bringing with him a reputation for revitalizing brands and improving operations.
Throughout these leadership changes, Starbucks has continued to focus on improving employee relations, store operations, and customer experience. The company has faced criticism over its handling of unionization efforts, with over 500 unfair labor practice charges filed against it. In March 2023, Schultz testified before the U.S. Senate Health, Education, Labor and Pensions Committee regarding the company’s actions amid the ongoing unionization campaign.
As of July 2025, Starbucks remains a global coffeehouse chain with over 34,000 stores worldwide. The company’s stock (NASDAQ: SBUX) is trading at $94.44, reflecting investor confidence in its continued growth and adaptation under new leadership.
