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Just a year and a half later, it was all over: Laxman Narasimhan, the former CEO of the American coffee chain Starbucks, had to resign. Sales fell 2% and profits fell 15% in the second quarter of 2024 (ending in March).
Sales total nearly $36 billion in 2023. However, Starbucks has recently failed to meet analysts’ expectations; its most important markets are the United States and China. Starbucks is in a tough position there: Chinese consumers are holding back on spending, and local competition can win points with cheaper offers.
The coffee shop chain’s shares, which fell sharply in early May, rose more than 20% last week following the announcement that Brian Niccol, who previously headed the Chipotle fast-food chain specializing in Mexican food, would take over as leader.
Photo: APA/AFP/Getty Images/Dylan Burr
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Photo: APA/AFP/Getty Images/Dylan Burr
The 50-year-old American received a multimillion-dollar payout for the move: in addition to an annual base salary of $1.6 million, the new Starbucks boss will receive a signing bonus of $10 million. He can also count on annual stock bonuses.
Starbucks was founded in Seattle in 1971, and American entrepreneur Howard Schultz took over the chain in 1987. He was inspired by Italian cafe bars during a trip to Milan and wanted to realize this concept in the United States. The billionaire took over the top position temporarily between April 2022 and March 2023. He is the largest private owner of the chain and publicly criticized the cafes in May: Cafes need to focus on providing customers with a better experience. It is important to strike a balance between fast takeaway service and a comfortable cafe atmosphere.
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