In response to Starbucks’ mediocre quarterly report, Howard Schultz, the former CEO of Starbucks, commented that the coffee company could turn around if it overhauls its U.S. retail stores. He pointed to the need to better its mobile ordering and paying experience, as well as develop new premium beverages that differentiates Starbucks from competitors.
Following the report that showed a decline in same-store sales, Starbucks revised its full-year forecast. The company didn’t meet analysts’ expectations for quarterly earnings and revenue, and traffic at the coffee chain dropped 7% during the first quarter, though it’s unclear why.
“The stores require a maniacal focus on the customer experience, through the eyes of a merchant. The answer does not lie in data, but in the stores,” wrote Schultz wrote in a letter posted to LinkedIn.
Schultz left Starbucks just over a year ago, with Laxman Narasimhan stepping into the role. “Leaders must model both humility and confidence as they work to restore trust and increase performance across the organization,” Schultz wrote.
