Starbucks has welcomed Laxman Narasimhan as its new chief executive officer, effective immediately, marking a significant leadership transition. Narasimhan also joins the company’s board of directors, succeeding Howard Schultz, the founder and former CEO, who had returned as interim CEO to guide the company through a period of transformation.

Narasimhan’s appointment was first announced on September 1, 2022, and he officially joined Starbucks on October 1, 2022. He brings nearly 30 years of experience in managing global consumer goods companies and advising various sectors, including retail, grocery, restaurants, and e-commerce. Over the past five months, Narasimhan has deeply immersed himself in the Starbucks culture, working in over 30 stores, manufacturing plants, and support centers worldwide. His hands-on approach included earning his barista certification, highlighting his commitment to understanding the business at every level.

Under Schultz’s recent interim leadership, Starbucks launched a comprehensive reinvention strategy, committing over $1 billion to enhance partner and store experiences. These investments focused on critical areas such as increasing pay, enhancing sick time accrual, introducing new financial well-being benefits, modernizing training programs, fostering collaboration, and driving store innovation and equipment upgrades. This strategic focus has yielded impressive results, including a 47% increase in stock price from the Q2 FY22 earnings call to the Q1 FY23 earnings call and a market cap growth of approximately $40 billion during the same period. Moreover, Starbucks achieved a 50% Total Shareholder Return, significantly outperforming the S&P 500, and was named the most valuable restaurant brand by Brand Finance for the seventh consecutive year.