Former Starbucks CEO Howard Schultz weighs in on company’s dismal quarterly report and offers advice for recovery

Former Starbucks CEO Howard Schultz has spoken out about the coffee chain’s recent struggles, offering his insights on how the company can bounce back from its disappointing quarterly report.

In a letter posted on LinkedIn, Schultz, who no longer holds a formal role within Starbucks, emphasized the need for the company to focus on improving its U.S. stores. He pointed to the importance of enhancing the mobile order and pay experience, as well as creating premium drinks that set Starbucks apart from its competitors.

Following a surprising decline in same-store sales, Starbucks recently slashed its full-year forecast, causing its shares to plummet by 17% and its market value to drop to $82.8 billion. Analysts have been scrambling to understand why the chain’s U.S. traffic fell by 7% in the quarter, with some speculating that social media backlash related to the company’s stance on conflict in the Middle East may be to blame.

Schultz, who transformed Starbucks into a global coffee powerhouse, stepped down as CEO over a year ago and handed the reins to Laxman Narasimhan. Despite his departure, Schultz seems to be offering guidance to his successor as Starbucks works to regain its footing in the market.

“Leaders must model both humility and confidence as they work to restore trust and increase performance across the organization,” Schultz wrote in his letter.

While Schultz has made it clear that he has no plans to return as Starbucks’ chief executive, his words of wisdom may prove invaluable as the company navigates its current challenges and strives to regain its former glory.