- The Starbucks founder posted a letter he wrote to management about the company's future.
- Howard Schultz said Starbucks is at a “tipping point” and has an opportunity for a “reset.”
- The founders encouraged the company's leadership to address Starbucks' organizational problems.
Howard Schultz wants Starbucks to go on a journey of soul-searching.
The coffee chain's founder and former CEO posted on LinkedIn on Thursday a two-page letter he sent to company executives in early February.
Schultz, 70, first served as CEO from 1987 to 2000, then from 2008 to 2017, before returning in April 2022 to serve as interim CEO until March 2023.
He will step down from Starbucks' board of directors in a transition scheduled for the end of 2023 and will be given the title of “chairman emeritus for life.”
In a letter titled “The Soul of the Brand,” Schultz wrote that Starbucks is at a “tipping point.” He said there is no need to be anxious about this crossroads, as it is one that most companies pass through at least once.
Instead, Schultz said the company should see this moment as an opportunity to reset and reinvent itself. The way to do this is for brands to return to their core values and rediscover their “soul.”
“Organizations that survive and thrive through the disruptions of today and tomorrow will be those that are not only agile and innovative,” Schultz said in the post. “But those who embrace their core purpose and reason for being.”
Schultz said not all companies stand the test of time or have a “soul” as a collective sense of history, culture, values and connections.
But he said Starbucks, whose customer base shares a love of coffee and community around the world, is one of the few brands that does. Schultz said leadership should address Starbucks' systemic issues and return to the brand's core values.
The founder didn't specify what the systemic problem was, but said there is a world “seemingly inflamed, steeped in disinformation and so much hate, where people are so disconnected from each other.” The letter ended with a dark image.
A Starbucks spokesperson said Schultz brings valuable perspective on the brand, which the team values.
The company recently experienced a “significant impact on traffic and sales” in the Middle East due to ongoing conflict, according to its first-quarter earnings release.
Mr. Schultz has also recently been at odds with Generation Z, which makes up a significant portion of the workforce at fast-food companies including Starbucks.
The founder and former CEO of Starbucks faced criticism for his anti-union views. He also commented on employees' distrust of companies.
