The Chief Executive of Starbucks (NASDAQ:SBUX), Howard Schultz, has announced his intention to step down from his post by the end of 2017.
Mr Schultz has been at the helm of the coffee brand for three decades, having been appointed in 1982. Despite leaving the role, Mr Schultz is to remain associated with the brand and is set to head the company’s new luxury venture.
“Starbucks consistently outperforms the retail industry because our stores, our offerings and the experiences our partners create make us a destination,” Mr Schultz said in a statement.
Whilst the winter season is typically a successful period for the international coffeehouse, with strong sales propped up by festive drink offerings, the latest set of earnings showed a slowdown. Mr Schultz acknowledged some difficulties for the brand with “ongoing economic, consumer and geopolitical headwinds.”
Mr Schultz is widely credited with having uplifting the brand following difficulties in 2008. At the height of troubles that year, Starbucks lost as much as $6 million in one day. He is now set to takeover the development of the Starbucks Reserve Roasteries, which is marketed as at a more high-end level, with cups of coffee set to cost as much as $12.
Mr Schultz successor is set to be Kevin Johnson, who has been on the company board for seven years and is widely considered to be the second in command. In the statement announcing his departure, Mr Schultz acknowledged that, “This is a big day for me.”
“I love the company as much as I love my family.” he continued. Nevertheless, he noted that it was the right time to handover the brand to Mr Johnson, describing him as “better equipped” to “run the company than I am”.
Starbucks is one of the world’s biggest coffee chains, with more than 25,000 stores in 75 countries.