Confirmed! CEO Howard to Reshape Starbucks' Corporate Culture!

On July 11, local time, Starbucks' interim CEO Howard Schultz published an open letter on the company's official website, declaring that the Starbucks of today offers neither its partners (employees) nor its customers a good environment or experience — and that, for that reason, the company needs to reshape its corporate culture.

Since baristas at some U.S. stores began pushing for unionization in August 2021, Starbucks has tried a variety of tactics to halt the movement — with little success. Although the company brought Howard back in April this year to deal with the issues affecting the brand, he could not stop more stores from joining the drive one after another. Worse, the overly aggressive anti-union campaign drew a lawsuit from the National Labor Relations Board (NLRB) over the illegal closure of unionized stores and the firing of employees at them.

In his open letter, Howard wrote that we live in a constantly changing world where economic, social, and operational pressures collide with one another. Starbucks, he said, is experiencing unprecedented cultural division and economic trauma: the business built today can no longer meet the changing actions, needs, and expectations of its partners or its customers — and it isn't built for the future either.

What needs to happen now, he argued, is to recreate an environment of connection, welcome, and safety with customers, while partners support one another with dignity, respect, and kindness — in short, to reshape the corporate culture. Howard called for renewed loyalty to Starbucks' shared mission, "to inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time," and laid out a 5-point reshaping plan:

"Reimagine how to bring the Starbucks mission to life" · "Fundamentally improve the welfare of store partners" · "Reimagine the store experience to achieve more connection with customers and positive impact on protecting the planet" · "Reconnect with customers by providing memorable, personalized experiences" · "Reaffirm our partnership"

The "old gentleman" also emphasized that the company has recently gathered many partners' thoughts, experiences, and stories through meetings, surveys, open forums, and discussions with management — so "reaffirming our partnership" already comes with a detailed plan:

• Deliver safe, warm, and friendly service in stores — and hope partners will set aside growing isolation and division, unite, protect, respect, and include one another, and build a safe, welcoming workplace together.
• Offer partners progress and opportunity — everyone should be able to learn valuable skills at Starbucks, earn fair pay, and access more development and advancement.
• Bring more welfare policies to partners. The pandemic has taken a toll on partners' physical and mental health and personal finances, so the company will provide additional policies and benefits, with more medical, psychological, and salary protections.
• Share power, share responsibility, share success. Starbucks' success rests on the effort of every partner, so the reshaping must let each partner show their personal strength, share in building a common future, and benefit when the company succeeds.

Detailed plans for the other four points aren't out yet, but the letter makes clear they will be formulated and rolled out in the coming weeks. Howard's reshaping drive is set to deliver on one of his classic lines: "Partners will always be Starbucks' most important asset."

After Howard announced his retirement in 2018, Starbucks chased rapid expansion while neglecting the experience and feelings of its store partners, letting a string of problems fester unresolved. Two years of pandemic then compounded everything, producing wave after wave of events harmful to the brand.

The hope now is that under Howard's leadership, the plan will restore the balance Starbucks' culture once championed — creativity and standards, entrepreneurial spirit and precise process, discipline and innovation.

Image source: Starbucks official website

FrontStreet Coffee Recommendation

Watching a giant recommit to its people is a good reminder that great coffee starts with care at the counter. For your own daily brew, FrontStreet recommends starting simple and reliable: the washed Ethiopia Guji Cooperative for pour-over — jasmine florals with bright citrus and lemon acidity — or, if you love the classics, Sidamo Huakui, naturally processed for berry, floral, and honeyed sweetness.

For espresso and milk drinks, FrontStreet's entry-level Specialty Blend (Colombia washed + Brazil) brings hazelnut, dark chocolate, and caramel with thick crema — the kind of comforting, balanced cup that made people fall in love with coffeehouse culture in the first place.