For two consecutive days, Starbucks's "big moves" continued. Starbucks said on March 16 that Kevin Johnson, who has been the company's CEO for the past five years, will step down as CEO and board director from April 4. Former CEO Howard Schultz will return to lead Starbucks for the third time in response to issues the company is currently facing rising costs.
Howard Schultz will serve as interim CEO in April
The day before, Starbucks issued a statement reiterating its "environmental commitment." The statement showed that the company will phase out the iconic cup by 2025 and continue to pilot the "borrow cup" program in countries such as the United States, the United Kingdom, Japan and Singapore, where customers can pay a deposit to purchase a non-disposable cup designed by Starbucks, return it to the smart trash can after use, and collect it for cleaning by a third-party company. At the same time, Starbucks will also offer more discounts, encouraging customers to bring their own cups, or set up cup washing stations, launch new recycling apps, etc.
Former CEO Schultz is back again
To cope with problems such as rising costs for companies
According to Starbucks news on March 16, Kevin Johnson, who has been the company's CEO for the past five years, will continue to serve as an advisor to the company and its board of directors until September. And his predecessor, Howard Schultz, will lead the company again. Schultz reportedly stepped down as executive chairman in 2018, and before that, he led Starbucks to build it from just a few coffee shops in Seattle to a global giant.
Outgoing Kevin Johnson has been leading Starbucks for 5 years
Starbucks said Schultz will serve as interim CEO in April and return to the company's board. The company did not indicate whether Schultz's board role was temporary. According to the company's statement, Schultz will be responsible for the day-to-day operations of Starbucks and direct innovation efforts, while helping to select and appoint the next permanent CEO.
Schultz said Starbucks needs to reinvent itself again. "While I don't plan to return to Starbucks, I know the company will have to transform again for a new, exciting future." Schultz said. The chain is said to face rising costs, coping with the impact of the pandemic and an expanding union movement of baristas in the United States. The company also told investors on March 16 that it would focus on improving relationships with its employees and plans to open more than 20,000 new stores around the world by the end of the century, while shifting more of its business to drive-thru and other forms of takeout.
Starbucks' same-store sales fell in 2020 for the first time in more than a decade due to the closure of coffee shops during the pandemic. But since last year, Starbucks, whichse sales have slowed, have seen a recovery. Wall Street analysts say rising wages, training, supply and other costs could put pressure on Starbucks' profits in the short term.
Starbucks sales have recovered from the coronavirus, but rising costs could affect its profits in the near term
Phase out iconic cups
But consumers need to pay more for it
On March 15, a day before Starbucks announced the "change of coach," the company announced that it would continue to pilot the "Borrow-A-Cup" program in the United States, the United Kingdom, Japan and Singapore, and that it would be tested in more countries and regions in the coming year to phase out the iconic paper/plastic cup by 2025. Allegedly, under the "borrowed cup", customers can pay a deposit to purchase a non-disposable cup designed by Starbucks and return it to the smart trash can after use, where the dirty cup is collected by a third-party company for cleaning.
▲ Example of a reusable cup from Starbucks
"Our (iconic) cups are everywhere and we love that." Michael Kobolry, Starbucks' chief sustainability officer, said, "But it also symbolizes that today's society is full of disposables. ”
In addition, Starbucks wants to encourage the use of reusable cups in other ways, including an additional 10 cents for disposable cups or a 50-cent discount for customers who bring their own cups (which is now 10 cents) for customers who bring their own cups. At the same time, the company will also explore other customer incentives and technologies, such as setting up a cup washing station at the coffee counter and launching a new recycling app.
According to reports, 40% of Starbucks' packaging waste comes from lids and cups. It hopes to gradually reduce the generation of plastic waste through measures such as the Cup Innovation Program to reduce waste pollution by 50% by 2030. In exploring the road to environmental transformation, Starbucks made up its mind in 2008, claiming to let nearly a quarter of customers use reusable cups by 2015, but this goal was not achieved.
Red Star News reporter Ding Wen
Edited by Pan Li
(Download Red Star News, there are prizes for the newspaper!) ）