Starbucks was in the blazing limelight a month or so ago. This time the news was not a new product launch or a new store opening, but the ways that the new CEO Brian Niccols (replacing the incumbent Laxman Narasimhan before his term ended) intended to “make Starbucks, Starbucks again”. In his “open letter for all partners, customers and stakeholders”, Niccols acknowledged that Starbucks seemed to “have drifted from [its] core.”

Starbucks share price (see below) seems to reflect this view – a downward trend starting in early 2023 went on for well over a year is now beginning to pick up, with Niccols at the helm. Here is my (potentially contrarian, likely underinformed) view on the issues at Starbucks and how these could be solved. Don’t miss the bonus piece on Starbucks in India – coming up soon.

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© Priya Narayanan, Assistant Professor of Marketing, IIM Kozhikode. Views are personal.

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All around Brian Niccols are people waiting and watching. And the last thing the newly anointed CEO of Starbucks probably wants is another bad set of quarterly financial results. But a few bad quarters might actually turn out to be good for Starbucks. Here’s why.

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