Starbucks CEO Kevin Johnson plans major changes to revive sales
- Kevin Johnson was appointed as Starbucks' CEO in August 2024 amid falling sales.
- Starbucks offered Johnson over $100 million to ensure his leadership and focus on revamping the company.
- His appointment was positively received by investors, indicating high hopes for his turnaround strategies.
In August 2024, Starbucks appointed Kevin Johnson as its new chief executive officer amidst declining sales that were attributed to a complicated menu, stiff competition in China, and boycotts linked to the war in the Middle East. To secure Johnson, who previously led Chipotle to success, Starbucks offered him a lucrative pay package exceeding $100 million, along with the use of a private jet for a lengthy commute from California to Seattle. Investors responded positively to the announcement, resulting in a 24.5% surge in Starbucks’ share price, highlighting the high expectations from Johnson to revitalize the brand. His immediate focus was on simplifying the menu as part of the strategy to enhance customer experience and boost sales, which he conveyed in his first communications to staff, building confidence in his team's ability to turn the company around despite prior challenges. The role of a CEO, as discussed by executive coaches, is marked by the necessity for effective strategy setting, communication, and the ability to inspire teams. The scrutiny of CEO pay has been a topic of debate, with many calling for changes to ensure that compensation packages align with performance metrics. The pressure on new leaders like Johnson showcases a critical period for the company, as they navigate through external challenges and internal expectations for financial improvement.