What is the similarity between Joe Biden and the CEO of Starbucks?
In Thomas Babington Macaulay’s “History of England,” the vibrant coffeehouses of the 17th century served as the main channels for public opinion in the city. However, what happens when the city’s population stays away? Laxman Narasimhan, the CEO of Starbucks, the largest coffee chain in the world, is experiencing the consequences.
Mr. Narasimhan has only been in his position for a year. He inherited slow growth in China and a workforce in America that is unionizing. Since then, the situation has deteriorated significantly. In the first quarter, sales in America dropped by 3% compared to the previous year, and the company reduced its profit forecast for the remainder of 2024. Delays and product unavailability led to approximately 15% of customers using the company’s mobile app not completing their orders. Starbucks’ stock price has declined by 20% this year. To add to the challenges, on May 5th, Howard Schultz, the visionary behind the chain’s success, criticized the company’s recent performance in a LinkedIn post.
2024-05-16 08:35:32
Originally published on www.economist.com