Starbucks North America CEO Michael Conway, who was appointed to the position in April after the company began dealing with weak demand for its expensive coffee beverages coupled with ongoing customer boycotts over its connections with Israel and the treatment of the coffee store chain’s workers, has retired from the company.
According to CNBC, Conway will remain with Starbucks North America in an advisory role through the end of 2024. Previously, as the company’s group president, Conway oversaw Starbucks’ international and channel development.
In July, then-Starbucks CEO Laxman Narasimhan indirectly pointed at the role that the boycott over Israel’s bombing of Gaza was having, saying on the company’s quarterly earnings call, “Headwinds persist in the Middle East, Southeast Asia, parts of Europe driven by widely discussed misperceptions of our brand.”
Although Vox’s December 2023 analysis of Starbucks’ struggles did not explicitly blame the coffee chain’s struggles on the boycotts, the boycotts could not be completely discounted as a factor among many responsible for the company’s loss of $11 billion in market value.
However, some experts, like Allison Horton, the head of insights at Memo, said that a more common problem was at the root of Starbucks’ troubles: customers aren’t interested in their products.
“Last year’s success with Red Cup Day was likely partially driven by increased awareness around it as an event — as indicated by the public’s higher engagement with news about the promotion,” Horton told Vox
. “We do not see news readership data indicating that this year’s downturn is closely correlated to worker walkouts or boycotts, but rather due to lower consumer awareness and interest in general.”Regarding Conway, Starbucks has opted not to hire a replacement, instead appointing Sara Trilling, Starbucks’ North American president, to lead retail operations in the North American market. According to Business Insider, Conway’s retirement is another shakeup at Starbucks following the beginning of the tenure of Brian Niccol, the former CEO of Chipotle, as the new top executive at Starbucks.
In an open letter, Niccol directed his attention to changing the culture at Starbucks.
“We’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells, and sounds that define Starbucks,” Niccol wrote.
Niccol continued, “Our stores will be inviting places to linger, with comfortable seating, thoughtful design, and a clear distinction between ‘to-go’ and ‘for-here’ service.”
Niccol also said he wants to “spend time in our stores and at our Support Centers, meeting with key partners and suppliers, and working with
our team to drive these critical first steps.” He also believes the Starbucks experience needs an update, saying that a visit to a Starbucks in the United States “can feel transactional, menus can feel overwhelming, the product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.”RELATED CONTENT: Chipotle To Emphasize ‘Generous Portions’ After Customer Complaints