Takeaways from Starbucks’ 2023 Shareholders Meeting

In a virtual gathering on his fourth day as Starbucks CEO, Laxman Narasimhan hosted the company’s 31st Annual Meeting of Shareholders. Joined by the Starbucks Board of Directors, leadership team, and dedicated employees worldwide, Narasimhan shared the valuable insights gained from his immersion journey, including a deep understanding of what it means to wear the green apron. Importantly, he outlined how these observations would shape the future of Starbucks.

Unveiling a Vision for a ‘Limitless’ Starbucks: Narasimhan wasted no time in sharing his bold vision for the refounding of Starbucks, reiterating it in a letter addressed directly to partners. He acknowledged the company’s limitless potential but emphasized the need to address the factors that limit progress. Narasimhan recognized that while Starbucks aims to be a different kind of company, it now operates in a different kind of world.

Leaders Collaborate on Defining Limitless Opportunities: Throughout his immersion journey, Narasimhan worked closely with the Starbucks leadership team, including executives like Brady Brewer, Rachel Ruggeri, Michael Conway, and AJ Jones II, to define the limitless opportunities that lie ahead for the company. Together, they explored ways to utilize Starbucks’ scale for good, embrace new business strategies, innovate the partner experience, and uplift communities worldwide.

Kevin Johnson, Starbucks chief executive officer, serves coffee to military members during the Starbucks Annual Meeting of Shareholders on Wednesday March 20, 2019 at WaMu Theater in Seattle.

Addressing Limitations and Embracing Change: As Starbucks embarks on a reinvention plan, the company remains committed to investing in partner wages and store operations. Leadership actively seeks guidance from retail partners, maintaining a direct and ongoing engagement. Narasimhan himself plans to spend half a day each month working in stores to stay closely connected to the culture, customers, and the challenges and opportunities within retail operations. He expects his leadership team to do the same. This commitment is just the beginning of a more hands-on approach.

Investments in the Partner Experience: Starbucks announced a remarkable investment of over $1 billion in the overall partner experience. This substantial commitment is evident in the introduction of new benefits and increases in pay for Starbucks partners. As a result, the average hourly pay at Starbucks stands at nearly $17.50 nationally, ranging from $15 to $23 per hour. When considering the value of Starbucks benefits, rated number one by Aon, partners can earn up to an additional $10 per hour, bringing the total to approximately $27.50 per hour. Furthermore, as part of the reinvention plan, Starbucks successfully rolled out credit/debit tipping across all eligible stores, providing customers with more opportunities to show appreciation to partners. The company also renewed the Coffee Masters program and introduced the Origin Experience to strengthen partners’ connection to coffee.

Human Connection as Starbucks’ Core: Narasimhan expressed the significance of human connection, which has become more crucial in a world marked by isolation, loneliness, and social exclusion. He emphasized Starbucks’ unique position to deliver this universal need, stating, “Together, we have acknowledged the opportunity for a refounding of Starbucks – to nurture the limitless possibilities for our partners, customers, communities, farmers, our earth, and our shareholders by prioritizing human connection over every cup of coffee.” In his letter, Narasimhan further highlighted the extensive discussions he had with Howard Schultz, the leadership team, and others, emphasizing the importance of this core value.

Laxman Narasimhan’s first Annual Meeting of Shareholders set the stage for a limitless future for Starbucks. With a clear vision, a commitment to address limitations, and a focus on human connection, the company is poised for continued success. By investing in partners, embracing change, and staying connected to customers and communities, Starbucks aims to foster

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