Starbucks, the iconic coffeehouse chain, has announced a series of important changes to its organizational structure aimed at accelerating its recovery, as part of its “Back to Starbucks” strategy. Brian Niccol, the company’s CEO, explained in a statement to all partners that these modifications are intended to strengthen leadership, enhance operational efficiency, and restore the brand’s original essence.

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One of the most significant announcements was the appointment of Mike Grams as the new Chief Operating Officer (COO). Grams, who previously served as Chief Store Officer for North America, will now take on a much broader role. In addition to overseeing operations in North America, he will lead the global development of coffeehouses and the worldwide supply chain.

To support this strategic integration, Meredith Sandland, the new Chief Store Development Officer for North America, and Sanjay Shah, Chief Supply Chain Officer, will report directly to Grams. This restructuring is intended to more effectively align the design, construction, and operation of Starbucks locations worldwide, as well as optimize logistics capabilities to offer a better experience for both partners and customers.

What is Starbucks’ new strategy?

Starbucks announced the merger of its Global Coffee and Sustainability team with the Global Brand team. This decision aims to reaffirm coffee as the heart of the company and consolidate it within menu development, product innovation, and marketing strategies.

The new structure will also enable deeper integration of sustainability principles into Starbucks’ products, packaging, and operations. Michelle Burns, who leads the coffee and sustainability area, will now report to Tressie Lieberman, the new Global Chief Brand Officer. This approach seeks to ensure that the company’s environmental commitment is not an isolated strategy, but an essential component of every cup of coffee it serves.

Another major adjustment among these important changes is the reassignment of Deb Hall Lefevre, Chief Technology Officer, who will now report to Cathy Smith, Chief Financial Officer (CFO). This change aims to accelerate the development and implementation of technologies that optimize the work of partners and improve the customer experience.

The integration of the technology and finance areas underscores the priority Starbucks places on technological innovation as a catalyst to boost operational efficiency and provide world-class service.

Who is part of Starbucks’ new executive team?

Starbucks’ new executive team reflects a strategic alignment that is more coherent with the company’s objectives. The key leaders who will report directly to Brian Niccol are:

• Brady Brewer, CEO of Starbucks International
• Dominic Carr, Chief Communications and Corporate Affairs Officer
• Mike Grams, Chief Operating Officer
• Sara Kelly, Chief Partner Officer
• Brad Lerman, Chief Legal Officer
• Tressie Lieberman, Global Chief Brand Officer
• Molly Liu, CEO of Starbucks China
• Cathy Smith, Chief Financial Officer

It is worth noting that Brad Lerman, the current Chief Legal Officer, has announced his upcoming departure from the company. While Starbucks begins the search for his replacement, Lerman will continue to lead the legal team and assist with the transition.

Why is Starbucks making these important changes now?

The restructuring addresses the urgent need to improve Starbucks’ financial performance. In its latest quarterly report, the company posted declines in comparable global sales and profits, influenced by inflation and economic uncertainties that have impacted consumer spending, particularly in the United States.

Since taking the helm at Starbucks, Brian Niccol has faced the challenge of reviving the brand in a complicated context. These important changes aim to streamline internal processes, reinforce customer focus, empower partners, and reclaim the innovative spirit that has defined Starbucks since its founding.

With these changes, the brand seeks a significant improvement in the customer experience inside its coffeehouses. The integration of technology will allow partners to spend more time preparing high-quality beverages and offering personalized service, while the renewed focus on coffee and sustainability will ensure more authentic and environmentally responsible products.

In Niccol’s words, “we are focusing on the customer, supporting our green apron partners, and acting like true owners.”

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