Howard, the father of Starbucks, said: he will visit China with the new CEO as soon as possible!

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A few days ago, in an exclusive interview with the Wall Street Journal, Starbucks interim CEO Howard. Schultz said that he had worked out a travel schedule for the future with the new CEO Laxman Narasimhan. Once the Chinese market relaxed the epidemic prevention and control measures for tourists, he took Nara Xinhan to visit China.

Schultz said that based on the store opening goals and financial guidelines of Starbucks' vision for China released last week, he had asked Starbucks management to take several days to assess whether they were confident about it. He also told them that even if the target was lowered, there would be no consequences, and in the end, executives "insisted on achieving these numbers".

Starbucks CEO is about to hand over, this will be his third time to "leave" the company, he has made a wish list. He wants to ensure that the strategic reform plans drawn up by him and other executives are on schedule and is "eager" to return to the Starbucks Chinese market.

Schultz said earlier that Nara Singhan will continue to serve as a member of the company's board of directors and a long-term adviser to Starbucks after taking over as CEO, guiding him to take Starbucks to the next level. It was also announced that he would no longer hold the post of CEO! What kind of plan do you have to visit China with CEO as soon as possible? As a result of the COVID-19 epidemic, Starbucks' sales in China continue to decline.

At the end of the reporting period of the third quarter, Starbucks had 34948 stores worldwide, of which 51 per cent were proprietary stores and 49 per cent were franchises. Stores in the United States and China account for 61% of Starbucks' global business, with 15650 stores in the United States and 5761 in China.

The largest market, Starbucks in the United States, had revenue of $5.62 billion, up 13% from a year earlier. But in China, the second-largest market, Starbucks is still suffering from a continued decline in sales. In the third quarter, Starbucks' revenue in China was $540 million, down 40% from a year earlier, passenger traffic fell 43%, and same-store sales fell 44%.

In China, the epidemic poses a huge challenge to Starbucks' business in the second-largest market, which accounts for about 13% of Starbucks' annual sales. As Schultz prepares for the handover, Starbucks China last week unveiled its vision for 2025, with ambitious store opening targets and plans to add about 3000 stores in China by 2025, a sign of the importance of the Chinese market to Starbucks.

Schultz also hopes to instill the culture and history of Starbucks into the next CEO, Laxman, so that some of the problems of the past few years won't happen again. "if staff turnover falls and customer service improves," Schultz says, "he will conclude that his work is successful. In addition, Starbucks must restore the trust of Starbucks investors.

"We continue to expect Starbucks' recovery in China to be non-linear," Wang Jingying, chairman of Starbucks China, said at Starbucks' biennial global investor conference on September 14. " After struggling to overcome the challenges posed by the epidemic, Starbucks China is more resilient. We will embrace new development opportunities more deeply and always lead the coffee industry forward. She saw a strong positive correlation between the improvement in same-store sales and the relaxation of restrictions on epidemic prevention and control measures. "this gives us confidence that once travel restrictions are completely lifted, sales will rebound strongly."

Starbucks interim CEO Schultz said that increased investment in coffee chain coffee shops and employees will put the coffee giant on the right track to turn things around by 2024. Schultz introduced Starbucks' strategic reforms at an investor briefing. Starbucks' spending on cafe operations and employee benefits will boost sales and profits, and shareholders will benefit from dividends and eventual resumption of share buybacks, which are expected to help improve customer service and employee experience, he said.

It is widely believed that Schultz is interested in Naraxinhan's ability and determination in the digital field. Indeed, Starbucks may be able to continue to work on digitization and product innovation. After all, the continuous emergence of new and old rivals such as Lucky in the Chinese coffee market is also enough to attract the attention of Starbucks.

Since the appointment has not been long, it is not clear how Starbucks' new CEO, Rushmanna Rushingham, will develop China, Starbucks' second-largest market in the world. Under the guidance of Schultz, can the new coach Rushman Rushingham turn Starbucks' operating profits in the Chinese market into profits?

Photo Source: Internet

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