Laxman Narasimhan hosts his first Annual Meeting of Shareholders

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On his fourth day as Starbucks chief executive officer, Laxman Narasimhan hosted the company’s 31st Annual Meeting of Shareholders virtually. Together with the Starbucks Board of Directors, leadership team and green apron partners (employees) from around the world, Narasimhan shared what he learned throughout his immersion journey, including what it means to wear the green apron. And, importantly, he also also shared how these immersion observations will shape the future of Starbucks.&nbsp;

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New ceo shares vision for a ‘limitless’ Starbucks 

Narasimhan shared his bold vision for the refounding of Starbucks, which he reiterated in a <a href="https://stories.starbucks.com/press/2023/laxman-letter-to-partners-with-gratitude-and-optimism/">letter shared directly with partners</a> to mark the occasion.&nbsp;

“We have limitless potential, but we need to address what limits us,” said Narasimhan. “Our performance is strong, but our health needs to be stronger. We strive to be a different kind of company, and that is unchanged. But we now operate in a different kind of world.”

Leaders define what limitless means to them&nbsp;

Throughout Narasimhan’s immersion, he worked closely with the leadership team to define the limitless opportunities ahead for Starbucks. 

Starbucks leadership emphasized the importance of the company using its scale for good, being open-minded to new ways of doing business, continuing to innovate the partner experience and uplifting communities around the world.&nbsp;

Starbucks shared that with the reinvention plan underway comes a continued investment in partner wages and store operations, and leadership will continue to directly engage with retail partners for guidance. Narasimhan shared that to keep closely connected to the culture and customers, as well as the challenges and opportunities within retail stores, he plans to work in stores for a half day each month and expects his leadership team will stay closely connected to the frontline experience as well. “This is just the beginning,” he said.

Starbucks announced over $1 billion in investments in the overall partner experience. That's shown up with the introduction of new benefits and with increases in pay.

From the beginning, Starbucks has always believed the partner experience is foundational to the success of the company. This past fiscal year alone Starbucks invested more than $1 billion in wages and training, bringing the average hourly pay at Starbucks to nearly $17.50/hour nationally and with a range of $15-23/hour. Factoring in the value of Starbucks benefits – rated number one by Aon – that number can rise to up to $10 (making it nearly $27.50/hour), if our partners participate in all of our benefits. In addition, as a part of the reinvention plan, Starbucks recently completed the rollout of credit/debit tipping across all eligible stores, giving customers more ways to show their appreciation to partners.&nbsp;

Partner benefit enhancements mentioned in the last year include the renewal of the <a href="https://stories.starbucks.com/stories/2022/the-coveted-starbucks-coffee-master-black-aprons-return/" target="_blank" rel="noreferrer noopener">Coffee Masters program</a> and the <a href="https://coffeeexperiences.starbucks.com/" target="_blank" rel="noreferrer noopener">Origin Experience</a> to deepen partners’ connection to coffee.&nbsp;

Human connection remains core to Starbucks&nbsp;&nbsp;&nbsp;&nbsp;

In his letter today, Narasimhan wrote, “Through my immersion, Howard, the leadership team and I have spent a significant amount of time discussing the universal need for human connection – something Starbucks is uniquely positioned to deliver – in a world full of isolation, loneliness and social exclusion. Together, we have acknowledged the opportunity for a refounding of Starbucks – to nurture the limitless possibilities for our partners, our customers, our communities, our farmers, our earth, and our shareholders by prioritizing human connection over every cup of coffee."

Scenic view of sunrise over Hacienda Alsacia coffee farm

Laxman Narasimhan hosts his first Annual Meeting of Shareholders.

Top takeaways from Starbucks 2023 Annual Meeting of Shareholders

Stories to inspire and nurture the human spirit

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Photos by Taylor Kelliher, Joshua Trujillo, Connor Surdi

Laxman Narasimhan took the helm of Starbucks as the <a href="https://stories.starbucks.com/press/2023/laxman-narasimhan-assumes-role-of-starbucks-chief-executive-officer/" target="_blank" rel="noreferrer noopener">new chief executive officer</a> on Monday, but before that, he spent almost six months being mentored by Howard Schultz, meeting with hundreds of partners (employees) around the world, earning his barista certification, and diving into the world of coffee. As Starbucks welcomes Narasimhan to his new role as ceo at today’s Annual Meeting of Shareholders, we take a look back at the people he has met across the company and around the world.&nbsp;

“It’s been a remarkable experience for me – from our origins, where we buy coffee from over a half a million farmers, through our roasting plans, our distribution centers, and into our stores,” Narasimhan said. “This immersion has been an incredible journey and a gift.”&nbsp;

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Narasimhan was welcomed as incoming chief executive officer of Starbucks with a coffee tasting in the place where it all began – at <a href="https://stories.starbucks.com/stories/2015/store-tour-inside-1912-pike-place-seattle-usa/" target="_blank" rel="noreferrer noopener">Seattle’s Pike Place market store</a>. Soon after, he met&nbsp; Starbucks partners <a href="https://stories.starbucks.com/stories/2022/incoming-starbucks-ceo-meets-partners-at-open-forum-shares-personal-journey/" target="_blank" rel="noreferrer noopener">at his first open forum</a> on Sept. 8, 2022, three weeks before he officially joined the company Oct. 1. When Schultz, then interim chief executive officer, introduced Narasimhan to partners, he said that “the leader of Starbucks, the future of the company, must be steeped in humility and must have an innate understanding of humanity.”&nbsp;&nbsp;

Schultz said as he got to know Narasimhan, he said he was stuck by his experience and leadership qualities. “I know we're going to be in great hands and I can promise you he is going to make us a better company.”&nbsp;

Listening and learning&nbsp;

Narasimhan worked with Schultz to create a unique immersion to learn about the Starbucks culture and the business.&nbsp;

“This time with Howard in stores, in the roasting plants, with partners, with investors, with customers – it's an incredible opportunity for me to be learning from one of the best entrepreneurs in the world,” Narasimhan said.&nbsp;

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Narasimhan began immersion as incoming ceo by earning his barista certification with four weeks of in-store training and visits to more than 30 stores around the world – working the drive-thru window, learning the point-of-sale system and perfecting the topping of a Pumpkin Spice Latte.&nbsp;&nbsp;

“I thought it was very important for me to put myself in the shoes of the partners and really understand what they do and how they do it,” Narasimhan said. “There were things I learned through experience in all of this. It taught me a lot.”&nbsp;&nbsp;

Alli Mendoza, a barista in Houston, was one of the partners who trained Narasimhan on the espresso bar. “People ask me what it’s like to train the ceo, like ‘Really, how was it?’” Mendoza said. “He loved interacting with people, he loves laughing and making people laugh. He just wants to learn and be a ceo who’s there for us.”&nbsp;

Coffee &amp; connection&nbsp;

In his visits to Starbucks stores, Narasimhan sat down with store managers, district managers and regional directors for their input and guidance. He said, “One piece of advice I hope to really live by was actually a question I was asked by a terrific store manager: ‘Did you earn your green apron today?’ It really got me reflective and thinking about how I could end each day in the future with that question, and hope that most days, the answer would be ‘yes.’”&nbsp;

The world of coffee&nbsp;

Narasimhan experienced the journey of Starbucks coffee from the first 10 feet to the last, starting from the fields where coffee is grown (such as Hacienda Alsacia above), to roasting plants in the United States and Europe, and Starbucks stores in London, Amsterdam, Japan, and the United States. Along the way, Narasimhan sipped countless cups of coffee. His favorite? Coffee from Guatemala.&nbsp;

Embracing innovation&nbsp;

Whether it’s hand-delivering a new cold foam blender to baristas in Seattle or testing out the virtual reality training for the new Clover Vertica™ in Minneapolis, Narasimhan has taken a hands-on approach to <a href="https://stories.starbucks.com/stories/2022/recipe-for-reinvention-starbucks-unveils-innovations-for-better-customer-barista-experiences/" target="_blank" rel="noreferrer noopener">new technologies to help create a better store experience</a> for partners and customers.&nbsp;&nbsp;

Celebrating with partners is one of the best part parts of the ceo job at Starbucks. In November, he attended his first <a href="https://historias.starbucks.com/en-es/press/2022/starbucks-green-apron-partners-showcase-their-coffee-craft-and-skill-at-the-latin-america-and-caribbean-barista-championship/" target="_blank" rel="noreferrer noopener">Barista Championship</a> at Hacienda Alsacia recognizing Starbucks coffee craft and expertise. In December, Narasimhan traveled to Arizona State University to honor the 850 Starbucks partners in the Fall 2022 graduating class who earned bachelor’s degrees through Arizona State University with the <a href="https://www.starbucks.com/careers/working-at-starbucks/education/" target="_blank" rel="noreferrer noopener">Starbucks College Achievement Plan</a>. In February, he spent time with partners in the Milan Roastery for the debut of <a href="https://stories.starbucks.com/starbucks-oleato-olive-oil-meets-coffee" target="_blank" rel="noreferrer noopener">Starbucks Oleato</a> beverages.&nbsp;

“On a very personal level, I’m going to be very connected to our partners and to our customers in the experience that we deliver – human connection,” Narasimhan said. 

Annual Meeting of Shareholders

Narasimhan led his first Starbucks Annual Meeting of Shareholders, in Seattle, on March 23, joined by board chair Mellody Hobson (right) and the Starbucks senior leadership team, including Zabrina Jenkins (left) and AJ Jones II (second from left). &nbsp;

“These past six months have enabled me to listen, to learn, and to think about what the future of Starbucks looks like and what we need to do to get there,” Narasimhan said. “As the new ceo&nbsp;of Starbucks, I am confident that I know our business and our people well, but I will continue to learn and I'm excited to continue earning my green apron every day.”&nbsp;

As Starbucks welcomes Narasimhan to his new role as ceo at the Starbucks Annual Meeting of Shareholders, we take a look back at the people he has met across the company and around the world.

Laxman Narasimhan’s immersive training – from Starbucks barista to ceo

Photos: Laxman Narasimhan’s immersive training – from Starbucks barista to ceo

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By Linda Dahlstrom, photos by Joshua Trujillo and Taylor Kelliher

It wasn’t what you’d typically expect from a letter of congratulations.

Last week, a former professor of Laxman Narasimhan’s reached out after hearing that he’d been named the incoming chief executive officer of Starbucks to say it was great news – but wanted to remind him that, all things considered, the probability of it was “practically zero,” said Narasimhan on Wednesday.

“I probably shouldn’t be here,” Narasimhan told a crowd of thousands of Starbucks partners who gathered virtually and in person at the company’s headquarters, the Seattle Support Center, to meet him. “I should not be here but I am. The world has handed me some really tough things, but resilience defines me. We win from within.”

Narasimhan, 55, has a hugely impressive resume, including nearly 30 years of leading and advising global consumer-facing brands. Most recently, he was ceo of Reckitt, the multinational consumer health, hygiene and nutrition company. He has degrees from a number of universities including an MBA from the prestigious Wharton School at the University of Pennsylvania.

But before all of that, Narasimhan was a boy growing up in Pune, India whose family struggled with grief so deep that it can rend the heart. His sister died before he was born and his older brother, Ram, died at the age of 8 when Narasimhan was only 6. He remembers waking in the night at neighbors' houses to discover that his brother’s health had taken a turn and his parents had left him in the care of others while they focused on his brother.

The family had spent their savings on health care for Ram and so after he died, his father devoted himself to his career. Narasimhan's mother, meanwhile, decided to go back to school to pursue teaching. For her, becoming a grade school teacher was a way to be around children, and also to serve the larger community. 

When he was 19, his father had a heart attack and the cardiologist told Narasimhan he should drop out of school to go to work for the family since his father couldn't any longer. His mother wouldn’t hear of it. “She said there is no way you are doing that. We’re going to live off my salary as a primary school teacher,” he said.

His father died when he was 22. In graduate school, Narasimhan sometimes struggled to make ends meet, as many students do. While studying in Germany one summer, he sometimes wasn't able to afford to eat three meals a day, but he persevered and found solutions. Eventually he went on to earn multiple degrees. After all, that determination to keep going was something he’d seen many times from his parents.

“I’m an extremely positive, optimistic person," he said. "It’s not about what happens to me but how I react."

‘An innate understanding of humanity’

When Howard Schultz, Starbucks ceo, introduced Narasimhan at the event on Wednesday, he said that “the leader of Starbucks, the future of the company, must be steeped in humility and must have an innate understanding of humanity.” As he got to know Narasimhan, he said he was stuck by his experience and leadership qualities, but that it’s his heart and respect for others that made him “know we're going to be in great hands and I can promise you is going to make us a better company.

Narasimhan will officially join the company on Oct. 1 and will spend the next six months as an apprentice to Schultz as he learns the business and the company culture. But he’s going to start by doing a multi-day barista training, he said.

On a visit earlier this week to the original Starbucks store, located at Pike Place Market, he made his first beverage (“It was stressful!,” he said) and held the camera to take photos of tourists posing in front of the historic store. Sara Kelly, executive vice president and chief partner officer, who led the Q&amp;A with Narasimhan said she wondered if later the tourists will reflect back and realize the significance of who their photographer was.

Narasimhan describes himself as “relentlessly curious” and said he's eager to learn from partners. He said he's fallen in love with Starbucks, especially as he watches partners serve customers in the stores. “The humanity, the warmth. (Partners) make them feel special in that moment and that’s really what this brand is about.”

Narasimhan is relocating to Seattle with his family, which includes his wife of 29 years and his mother, who became somewhat of a celebrity at his last company when she would inadvertently crash Zoom calls he was leading, including one where she told him to take out the trash. He and his wife also have two adult children who live in the United States, meaning the family will all be back in the same country after many years of traversing the globe.

He said he’s looking forward to getting to know his new extended family of 400,000 Starbucks partners around the world who serve 100 million customers a month. Each cup served, said Narasimhan, is an opportunity for connection. It shows “the magnitude of the impact that we can have in driving connection in a world where we are often unconnected,” he said. “It just goes to show you the potential we have is enormous and there’s a lot of humanity in connecting over a cup.”

At the heart of it all is the Starbucks mission, to nurture and inspire the human spirit, one person, one cup and one neighborhood at a time, he said. As he leans into his future, he’s thinking about all those who helped him get where he is, against so many odds, his family’s belief in him and all that’s ahead he has to learn and experience alongside Starbucks partners.

“One thing I’ve learned is that, miraculously, when you open yourself up to destiny, all the people you’ve connected with along the way come and aid you. People really matter.”&nbsp;

From left to right: Laxman standing with smiling Howard inside Starbucks Reserve store

Laxman Narasimhan spoke to thousands of Starbucks partners on Wednesday in Seattle about connection, perseverance and his mom crashing Zoom calls.

Incoming Starbucks ceo meets partners at open forum, shares personal journey

‘Resilience defines me’: Incoming Starbucks ceo meets partners at open forum, shares personal journey

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‘I am thrilled to announce that we have identified an individual with the ideal background, knowledge, and demonstrated track record of living his values to lead Starbucks into the future,’ wrote Howard Schultz in a letter to Starbucks partners.

As you know, when I rejoined Starbucks in the spring it was with the goal of co-creating the future of the company with all of you and working with the Board of Directors to identify our next chief executive officer – a person with not only the skills and experience to guide the transformation of a global brand that touches the lives of more than 100 million customers but also understands that the core of the&nbsp;Starbucks Experience&nbsp;is our mission and the culture brought to life by 400,000 partners every day.&nbsp;

I am thrilled to announce that we have identified an individual with the ideal background, knowledge, and demonstrated track record of living his values to lead Starbucks into the future. On October 1st,&nbsp;Laxman Narasimhan&nbsp;will join us as the next chief executive officer of Starbucks.&nbsp;&nbsp;

Put simply, Laxman is steeped in humility with extraordinary executive and operational skills. &nbsp;&nbsp;

He is a&nbsp;strategic and transformational leader with deep experience in building powerful consumer brands, driving innovations that create loyalty and convenience for consumers, and working in partnership with employees to live up to their own full potential and fulfill a purpose. Over the course of his three-decade career in the retail and CPG industries, he has worked across the U.S., Europe, Latin America, Asia and Africa. And from the significant time that I, and others of us on the leadership team and Board have spent with him, we know that he is a world-class leader in every sense.

Of course, in taking on this role, Laxman has learned about the Reinvention plan in detail. And once he comes on board, he will immediately begin a full immersion into Starbucks as we accelerate our work to transform the company for the future. This will include spending time as a barista in our stores, meeting our partners around the world, visiting roasting plants, distribution centers and the farms where our coffee is grown, and more. This unique experience will position him to effectively bring his own perspectives to help build on and shape this work.&nbsp;

I am looking forward to introducing you all to Laxman and working closely with him as he listens, learns, and plans for the future of Starbucks for the benefit of our partners, customers, and communities. He is the leader we were looking for to lead Starbucks at this moment and for the future. Please join me in welcoming Laxman to Starbucks.&nbsp;

Message from Howard Schultz: Welcoming Laxman Narasimhan, our next ceo

I am thrilled to announce that we have identified an individual with the ideal background, knowledge, and demonstrated track record of living his values to lead Starbucks into the future.

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Howard Schultz will continue as interim ceo until April 1, 2023 and serve as an advisor to Narasimhan through calendar 2023 while remaining on Starbucks Board of Directors.

SEATTLE (September 1, 2022) – Starbucks (NASDAQ: SBUX) today announced that Laxman Narasimhan will become the company’s next chief executive officer and a member of the Starbucks Board of Directors. Narasimhan will join Starbucks as incoming ceo on October 1, 2022 after relocating from London to the Seattle area and will work closely with Howard Schultz, interim ceo, before assuming the ceo role and joining the Board on April 1, 2023.

Narasimhan brings nearly 30 years of experience leading and advising global consumer-facing brands. Known for his considerable operational expertise, he has a proven track record in developing purpose-led brands. Building on companies’ histories, he has succeeded in rallying talent to deliver on future ambitions by driving consumer-centric and digital innovations. Most recently, he served as chief executive officer of Reckitt, a FTSE-12 listed multinational consumer health, hygiene and nutrition company, where he led the company through a major strategic transformation and a return to sustainable growth.

“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. His understanding of our culture and values, coupled with his expertise as a brand builder, innovation champion, and operational leader will be true differentiators as we position Starbucks for the next 50 years, generating value for all our stakeholders. On behalf of the entire Board, I am thrilled to welcome Laxman as Starbucks next ceo,” said Mellody Hobson, Independent Starbucks Board of Directors chair.

During the transition period, Narasimhan will be fully immersed in the company, spending time with Schultz and the management team, partners and customers and gaining in-depth exposure to the brand, company culture, and Reinvention plan. This will initially include Starbucks store immersions, visiting manufacturing plants and coffee farms, connecting with partners around the globe as well as Starbucks long term business partners.

Schultz will remain in the role of interim ceo during this transition period, following which he will continue as a member of the Starbucks Board of Directors. He will remain closely involved with the company’s Reinvention and act as an ongoing advisor to Narasimhan.

“When I learned about Laxman’s desire to relocate, it became apparent that he is the right leader to take Starbucks into its next chapter. He is uniquely positioned to shape this work and lead the company forward with his partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets. As I have had the opportunity to get to know him, it has become clear that he shares our passion of investing in humanity and in our commitment to our partners, customers, and communities. The perspectives he brings will be a strong asset as we build on our heritage in this new era of greater well-being. I greatly look forward to our partnership over the coming months and years,” said Schultz.

“Starbucks commitment to uplift humanity through connection and compassion has long distinguished the company, building an unrivaled, globally admired brand that has transformed the way we connect over coffee. I am humbled to be joining this iconic company at such a pivotal time, as the Reinvention and investments in the partner and customer experiences position us to meet the changing demands we face today and set us up for an even stronger future,” said Narasimhan. “I look forward to working closely with Howard, the Board, and the entire leadership team – and to listening and learning from Starbucks partners – as we collectively build on this work to lead the company into its next chapter of growth and impact.”

Previously, Narasimhan held various leadership roles at PepsiCo, including as global chief commercial officer, where he was responsible for the company’s long-term strategy and digital capabilities. He also served as ceo of the company’s Latin America, Europe and Sub-Saharan Africa operations, and previously as the ceo of PepsiCo Latin America, and the cfo of PepsiCo Americas Foods. Prior to PepsiCo, Narasimhan was a senior partner at McKinsey &amp; Company, where he focused on its consumer, retail and technology practices in the U.S., Asia and India and led the firm’s thinking on the future of retail.

Narasimhan is also a trustee of the Brookings Institution, a member of the Council on Foreign Relations, served as a member of the UK Prime Minister's Build Back Better Council, and is a member of Verizon’s Board of Directors. He holds a degree in Mechanical Engineering from the College of Engineering, University of Pune, India. He has an MA in German and International Studies from The Lauder Institute at The University of Pennsylvania and an MBA in Finance from The Wharton School of The University of Pennsylvania.

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Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or <a href="http://www.starbucks.com">www.starbucks.com</a>.

A collage of images on the left, Starbucks store Pike Place Market, in the center Starbucks new ceo Laxman, on the right a coffee cup and two female partners smiling wearing

Howard Schultz will continue as interim ceo until April 1, 2023 and serve as an advisor to Narasimhan through calendar 2023 while remaining on Starbucks Board of Directors.

Starbucks Names Laxman Narasimhan as Next Chief Executive Officer

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