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Starbucks realigns senior leadership team

Starbucks realigns senior leadership team

CEO Howard Schultz to focus more on global growth

Starbucks Corp. on Monday realigned its senior leadership team to allow chairman and CEO Howard Schultz to focus more on the coffeehouse chain’s next wave of global growth.

In filings with the Securities and Exchange Commission, the company said Cliff Burrows, currently group president, U.S. and Americas, will assume the new role of group president, Siren Retail, effective Sept. 1.

In his new position, Burrows will have global responsibility for the Starbucks Reserve Roastery & Tasting Room concept, as well as Starbucks Reserve-only stores, both of which offer micro-lot coffees, specialty brewing techniques and a more elevated customer experience.

Burrows will also lead Starbucks’ planned expansion of the standalone Princi bakery café brand, as well as the integration of Princi baked goods into Reserve units. Starbucks announced its investment in the Milan-based boutique bakery concept earlier this month.

The Teavana retail business will also come under Burrows, who will continue to report directly to Schultz.

John Culver, meanwhile, will shift from his current role as group president, China/Asia Pacific, or CAP, channel development and emerging brands to take on the role of group president, Starbucks global retail, with responsibility for the brand’s retail sales around the world.

Culver, who will continue to report to Starbucks chief operating officer Kevin Johnson, will oversee the Europe, Middle East and African, or EMEA, region, as well as CAP and the Americas.

Several other senior leaders will now report directly to Johnson, the company said.

They include Scott Maw, executive vice president and chief financial officer; Lucy Helm, executive vice president, general counsel and secretary; Michael Conway, president, global channel development and other senior leaders within the company’s supply chain, technology, human resources and marketing divisions.

The move is designed to allow Schultz to increase his focus on global strategy, store development and design, the company said.

The chain ended its third quarter on June 26 with 24,395 units in 74 countries. This fiscal year, the company expects to add 1,900 net new openings, rising from 1,800 projected previously, including 750 in the Americas, 900 in China/Asia Pacific, and 250 in the EMEA region.

Starbucks’ global same-store sales growth of 4 percent in the June 26-ended third quarter fell short of expectations, but Schultz said last week the quarter was an anomaly and that trends would improve later this year and into next year. 

Contact Lisa Jennings at [email protected]
Follow her on Twitter @livetodineout

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