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The Street
The Street
Colette Bennett

Starbucks CEO Makes a Surprising (and Admirable) Move

It's no surprise CEOs often get a bad rap. From Elizabeth Holmes' far-reaching fraud at Theranos to Harvey Weinstein's sexual assault cases, it's clear that many in this position of power choose to abuse what they have.

That said, there are great CEOs too, and Starbucks' (SBUX) newest CEO Laxman Narasimhan is clearly aiming to be one of them. He just took the reins from ex-CEO Howard Schultz on March 20 (although he has been playing interim CEO since October), and in a recent letter to employees he announced a plan to do something pretty amazing.

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“With you, I’ve experienced every aspect of the business to learn what it truly means to wear the green apron," Narasimhan wrote. "You’ve welcomed me into our stores, trained me in how to be a barista … all to help me deeply understand what we do, how we do it, and the challenges and opportunities facing us."

“To keep us close to the culture and our customers, as well as to our challenges and opportunities, I intend to continue working in stores for a half day each month.”

Narasimhan's commitment to keeping his finger on the pulse of the business is admirable, but his plan is bigger than just donning the green apron once a month. The letter also laid out how the new CEO will continue the reinvention plan Schultz initiated, which includes equipment improvements, raising wages and benefits for non-union employees, and updating training programs.

Narasimhan is coming in at a time when Starbucks is facing some unique difficulties, including claims by the National Labor Relations Board of “egregious and widespread misconduct” pertaining to employee treatment. But he's just getting started, so time will tell what he's got planned that he hasn't shared publicly yet.

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