Laxman Narasimhan was appointed by Starbucks Corp. to lead a "reinvention" of the largest coffee chain in the world on Thursday. He is credited with revitalizing the maker of Lysol disinfectants.
Mr. Narasimhan served as the CEO of Reckitt, a company that also produces Mucinex cold syrup, Durex condoms, and Enfamil infant formula. When he made that announcement earlier in the day, shares of Reckitt, a company listed on the FTSE, dropped by 4%. There is unrest at Starbucks right now. Over 200 of its US locations have joined the union in the last year as employees fight for improved benefits and pay amid rising inflation.
While dealing with rising expenses for goods and labour, the company is also changing its focus from cafés that encouraged longer visits to mobile pickup and delivery. Additionally, the US coffee chain's operations in one of its main international markets have stalled due to COVID restrictions in China.
After spending a few months getting to know the company and its "Reinvention" strategy, which includes paying better wages for baristas, enhancing employee welfare and customer experience, and reimagining locations, Mr. Narasimhan will join Starbucks in October but assume leadership in April 2023. Howard Schultz, the interim CEO who took over the company's leadership for a third time in April after Kevin Johnson retired, will remain in charge up to that point.