Starbucks' new CEO doesn't want the shake-up to end with him

September 25, 2024 04:33 AM AEST | By EODHD

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Starbucks' new CEO doesn't want the shake-up to end with him — Image source: Kalkine Media

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Starbucks’(SBUX) CEO, Brian Niccol, is making waves at the coffee giant once again. This time, he’s focused on China, naming Molly Liu as sole CEO of the region, ushering in a new era of leadership as the company aims to return to its roots. The plan is part of the company’s efforts to “gradually and smoothly” transition leadership in China “to a new generation of successors,” Starbucks said in a WeChat update. Belinda Wong, who co-led the chain, will continue to serve as chair of Starbucks China. Liu’s appointment marks the second executive shake-up at Starbucks since Niccol took over as CEO in early September, following Michael Conway’s retirement after just eight months as North America CEO.

That position will remain vacant as the company looks to fill a chief brand officer role to oversee product and marketing strategies. With Starbucks’ sluggish demand in both the U.S. and China, Liu faces the challenge of stabilizing the Chinese arm of the business against stiff competition from local rivals such as Luckin’ Coffee. Starbucks has long aimed to grow its China footprint. As part of that long-term investment, the company plans to have 9,000 stores in China by 2025, up from the current 7,300.

It once boasted that it opened a new store every nine hours. Unlike many international markets where Starbucks partners with third parties, it directly operates its stores in China. Former CEO Laxman Narasimhan said in July that the company was exploring “strategic partnerships” in the region, a move encouraged by activist investor Elliot Investment Management. Shortly after taking over as CEO, Niccol outlined a four-part strategy in an open letter aimed at getting Starbucks back on track. He emphasized that, while the U.S.

would remain the main focus, the company needs to better understand the “potential path to capture growth and capitalize on our strengths” in China. Bank of America (BAC) analysts suggest licensing operations in China could enhance the coffee chain’s value as it deals with challengingmarketconditions. For the latest news, Facebook, Twitter and Instagram. View comments

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