Laxman Narasimhan to join as the new CEO of Starbucks

Starbucks announced, on their stories and news page, that Laxman Narasimhan, previous CEO of Reckitt, will be joining Starbucks as the new CEO of the company. Adding to this announcement, Starbucks also stated that the current CEO of the company, Howard Schultz, will continue as the Interim CEO of the company till April 2023. Howard Schultz will continue as an advisor to Laxman Narasimhan throughout 2023 and will stay as a part of the Starbucks Board of Directors. Laxman Narasimhan was previously the CEO of Reckitt. Reckitt is known in the market through its products such as Durex Condoms, Mucinex cold syrup, and Enfamil Baby Formula. He joined the company in September 2019. Laxman Narasimhan announced his resignation from the post of the CEO of Reckitt this Thursday. As per the announcement by Starbucks, Narasimhan will be joining the company on Oct 1, 2022, as an incoming CEO. Laxman Narasimhan currently holds 30 years of expertise in leadership and management in brands working in the consumer goods segment. Narasimhan has previously worked with PepsiCo, where he was appointed in several leadership roles such as CCO, CFO, and CEO of reversal regions where PepsiCo operates. Along with PepsiCo, He has also worked with McKinsey & Company. Starbucks believes that Laxman Narasimhan will lead the company through his expertise toward the goal it desires.  Starbucks is a giant when it comes to the coffee business. It is the most well-known consumer goods brand globally. But the rising inflation in the US is impacting the business of Starbucks. This is mainly due to the demands of the employees asking for better wages and benefits for coping with the growing inflation. As a part of this, hundreds of Starbucks stores have undergone the process of unionization. Along with this, Starbucks has also proposed plans to rework its business model. Starbucks is planning to push the model of drive-throughs and deliveries.  Besides the US, China is the biggest market for Starbucks. The restrictions which were applied during the COVID-19 pandemic in China and even the current operational restrictions active in the country have adversely impacted Starbucks' business.  To address these issues, Howard Schultz, current CEO of Starbucks, will be serving as an advisor to Laxman Narasimhan, to guide him through the Starbucks plan of reworking its business model. Laxman Narasimhan will also be handling the issues related to pay and wages. The rework in terms of the business model includes better payments for the employees, improved employee benefits, and improved stores that will be focusing on drive-throughs and mobile deliveries.  Howard Schultz stated about Laxman Narasimhan that he is the right person for handling the future growth of the company. Further, he added that Narasimhan has shown capabilities in managing business partners and boosting growth in mature and new markets. His work with Reckitt and previous companies is phenomenal and describes his qualities, which will help drive Starbucks towards its desired goals.  Laxman Narasimhan said that the commitment by Starbucks to improving human standards through improved connection and compassion has separated it from the other brands in the market. It has helped Starbucks to transform into one of the beloved consumer goods brands across the world. Narasimhan expressed joy that he is joining the company at a moment when it is planning the reinvention of its business.