Everybody hates Starbucks. The left, the right, even some of its millions of customers.That’s the reality that Laxman Narasimhan will face when he arrives in October to begin six months of understudying founder Howard Schultz as “incoming chief executive” of the $95bn company
The Seattle-based chain has long drawn brickbats for its ubiquity, elaborate drinks and even the way it roasts coffee. Now it finds itself squarely in the crosshairs of America’s culture wars and economic struggles. It has been targeted for unionisation by a resurgent labour movement, and was also sued last week by conservatives challenging its diversity and inclusion efforts.
Meanwhile, staffing issues and changing customer preferences have contributed to unpleasant experiences for all in many stores. Outlets designed to fill 1,200 orders daily routinely serve 1,500, and increased customisation has made the task harder. Labour and raw material costs have hit profits and the company’s share price is down by 29 per cent this year, below the broader market.