On September 21, 2023, Starbucks Corporation announced that Laxman Narasimhan had officially taken over as chief executive officer, succeeding interim CEO and company founder Howard Schultz. Narasimhan’s appointment marked the culmination of a global search for a leader to guide Starbucks into its next phase of growth. He brings nearly three decades of experience in leading global consumer goods businesses, including previous roles as CEO of Reckitt Benckiser and Chief Commercial Officer at PepsiCo.
Upon joining Starbucks as incoming CEO on October 1, 2022, Narasimhan embarked on an extensive immersion program to understand the company’s operations and culture. Over five months, he worked closely with employees—referred to as “partners”—across more than 30 stores, manufacturing plants, and support centers worldwide. This hands-on approach included earning his barista certification, reflecting his commitment to understanding the business from the ground up.
“I am humbled to officially step into my role as Starbucks CEO, leading our incredible team of more than 450,000 green apron partners around the world,” Narasimhan stated. “I am excited to work alongside our partners worldwide to unlock the boundless future of Starbucks.”
Narasimhan’s leadership coincides with Starbucks’ implementation of its “Triple Shot Reinvention Strategy,” a comprehensive plan aimed at revitalizing the company. The strategy focuses on expanding to 35,000 locations outside of North America by 2030, achieving a total of 55,000 stores globally. It also includes a $3 billion cost-savings initiative and wage increases for baristas, aiming to double their hourly income over fiscal 2020 earnings by the end of fiscal 2025. These efforts are designed to enhance partner experience, customer engagement, and store innovation.
Mellody Hobson, Independent Starbucks Board of Directors Chair, expressed confidence in Narasimhan’s capabilities: “Laxman is an inspiring leader. His deep, hands-on experience driving strategic transformations at global consumer-facing businesses makes him the ideal choice to accelerate Starbucks’ growth and capture the opportunities ahead of us.”
Narasimhan’s educational background includes a mechanical engineering degree from the University of Pune, an MBA from the Wharton School, and a master’s degree in German and International Studies from the Lauder Institute. His diverse experience and global perspective are expected to be instrumental in advancing Starbucks’ strategic objectives.
As Starbucks navigates a dynamic market landscape, Narasimhan’s leadership will be pivotal in steering the company through its reinvention efforts. His emphasis on human connection, operational excellence, and innovation positions Starbucks to adapt and thrive in the evolving global coffee industry.
