Business

Starbucks Strategy Chief Frank Britt Leaves After Two Years

A Starbucks coffee shop in New York, US, on Monday, Jan. 29, 2024. Starbucks Corp. released earnings figures on January 30. Photographer: Angus Mordant/Bloomberg (Angus Mordant/Bloomberg)

(Bloomberg) -- Starbucks Corp.’s Frank Britt, who helped reimagine the company’s stores amid a unionization wave, has left the company.

Britt’s last day at Starbucks was June 14, Chief Executive Officer Laxman Narasimhan said in a letter sent to most non-retail workers. The exit is a “personal decision” to relocate back to the East Coast, where Britt’s family lives, according to the memo. 

Britt didn’t immediately reply to a request for comment.

The role won’t be replaced following a revamp of several leadership roles across regional lines as the company seeks to expand its store footprint.

Britt joined the chain in 2022 as Howard Schultz, who built Starbucks into the world’s dominant coffeehouse, returned to the helm for a third stint.

The company at the time was coping with a union movement that pitted management against some workers and hurt the company’s image. Schultz overhauled the chain’s senior ranks in response, expanding Britt’s remit. At the time of his departure, it included overseeing the data, analytics and insights, as well as the division that planned and executed Starbucks’ revamp.

Schultz said Britt was a “key architect” of a plan to revamp stores that were buckling under an influx of to-go orders. He also guided efforts to boost pay and hours for baristas. The chain was seeking to make it easier for staff to operate cafes by investing in new equipment and training, among other initiatives.

In the letter, Narasimhan said Britt was instrumental in transforming the company’s business and setting it up for growth. 

Narasimhan, who replaced Schultz as CEO in March 2023, has faced a sales slump amid boycotts over the chain’s perceived position in the Israel-Hamas war and pressures from inflation that led to consumers cutting back on spending.

In the US, the company is looking to bring in customers with deals, such as four drinks for $20, and discounts like 50% off drinks available to loyalty members on the company’s app. Starbucks has also launched new products while speeding up service with changes such as new workflow for making drinks.

The chain’s efficiency efforts “are tracking ahead of expectations” and helped offset the cost of offering more promotions, Chief Financial Officer Rachel Ruggeri told investors July 30. 

Starbucks this week posted a second straight sales decline at stores open for more than a year. The company is facing increased scrutiny after activist investor Elliott Investment Management took a stake. Conversations with the firm have been “constructive,” Narasimhan said in a call with investors.

The chain’s shares rose 1.4% at 2:15 p.m. New York time, bringing their year-to-date decline to 20.8%. The S&P 500 Index had climbed 11.5% in the same period.

(Updates with more details in sixth, tenth and final paragraphs.)

©2024 Bloomberg L.P.

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