Speakers at the “Barron Roundtable” offer their economic perspectives and analyze the stocks of Starbucks and Chipotle.
American coffee company Starbucks has had several CEOs since it went public and has seen its fair share of drama.
The origins of the huge coffee chain date back to 1971, when the first shop was opened by three friends: Gerald Baldwin, Gordon Bowker and Zev Siegl.
The first store opened in Seattle and each of the men invested $1,350 of their own money and borrowed $5,000 from a bank, according to the Starbucks website.
Howard Schultz has served as CEO of Starbucks three separate times since the company went public. (Costfoto/NurPhoto via Getty Images I Steven Ferdman/Getty Images/Getty Images)
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When the company first launched, it was very different than it is today.
Starbucks initially sold products for use at home, such as coffee beans and tea. It wasn’t until Howard Schultz purchased the company in 1987 that Starbucks became a coffee shop that sold a variety of beverage products.
Since the company went public in 1992, Starbucks has had six CEOs, with Brian Niccol officially joining Starbucks on September 9, 2024.
1.Howard Schultz
Schultz was the first CEO of Starbucks. He has held the role three different times during his long involvement with the company.
After joining the Starbucks team as director of operations and marketing in 1982, he took a trip to Italy in 1983, where he fell in love with the way coffee was sold and enjoyed. He was determined to bring what he had discovered to the United States.
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Schultz played a huge role in Starbucks’ initial expansion. (Anna Moneymaker/Getty Images/Getty Images)
“In every shop I visited, I began to see the same people and the same interactions, and I realized that what these cafes had created, aside from the romance and theater of coffee, was a morning ritual and a sense of community,” Schultz said, according to the company’s website.
His idea wasn’t initially well received by the founders, so he opened his own coffee shops called II Giornale before buying Starbucks in 1987, according to the company’s website.
During his first years as CEO, Schultz significantly expanded the coffee chain, with more than 3,000 stores opening under his leadership, including locations in Japan, China and Europe.
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When he resigned in 2000, he still remained involved with the company as chief strategist and global president.
But it wasn’t the end of his time as CEO. He subsequently returned to that role in 2008 until 2017, before returning briefly as interim CEO from April 2022 to March 2023.
2. Orin C. Smith
Following Schultz’s initial departure as CEO of Starbucks, Orin C. Smith took over the role from 2000 to 2005.
Smith, like Schultz, played an important role in the coffee chain’s expansion.
He held numerous leadership roles at the company before becoming CEO. Smith worked as chief financial officer, then became president and chief operating officer, eventually becoming CEO.
Orin C. Smith was CEO of Starbucks from 2000 to 2005. (Yosikazu Tsuno/AFP via Getty Images/Getty Images)
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When he started as CFO, there were 45 Starbucks locations, according to Investopedia. When he retired in 2005, Starbucks operated 9,200 stores worldwide.
Smith died on March 1, 2018 from pancreatic cancer.
3. Jim Donald
Jim Donald’s time at Starbucks was quite short.
He became the company’s CEO in 2005 and held the position until 2008.
Before becoming CEO of the company, he served as president of the North American division, founded in 2002.
Jim Donald spent about three years as CEO of Starbucks. (Daniel Acker/Bloomberg via Getty Images/Getty Images)
After his three years at Starbucks, he went on to lead other companies as CEO, including Pathmark Supermarkets, Extended Stay Hotels and Albertsons, the grocery company.
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Donald has served as co-president of Albertsons since April 2019.
4. Kevin Johnson
Next on the list of Starbucks CEOs was Kevin Johnson. He took over the role following Schultz’s second term as CEO. Johnson served as CEO from 2019 to 2022.
Before being CEO of Starbucks, he worked at Microsoft for 16 years, according to the Starbucks website, and was CEO of Juniper Networks.
He was also appointed to the National Security Telecommunications Advisory Committee in 2008, where he served under George W. Bush and Barack Obama.
His tenure at Starbucks began in 2009, when he joined the board of directors. Years after working with the company, he would become its leader.
Microsoft was one of the companies Kevin Johnson was a part of before Starbucks. (Scott Olson/Getty Images/Getty Images)
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“About three years ago, the night before the public announcement that Howard would step down as CEO and that I would succeed him, we closed our Pike Place store early. Now, the Pike Place store was the first real Starbucks store store in Seattle,” Johnson shared with the Harvard Business Review in 2019.
“That evening, Howard and I and the leadership team sat together on the hard wood floor that millions and millions of Starbucks customers and partners have walked on over the decades. And we shared stories. And, at one point, Howard he stood up, reached into his pocket and took out a key.
“And he said, ‘Kevin, this is my personal key to the Pike Place store. It’s a key that I’ve carried with me for decades. And I want to present this key to you as a symbol of this transition.’ I carry that key with me wherever I go. Because that key is a symbol of the responsibility I have: to know what to preserve from the past and to have the courage to boldly reinvest in the future. Because if we don’t reinvent and reimagine it, the world will pass us by.”
Johnson served as CEO of Starbucks until 2022.
5. Laxman Narasimhan
Following Johnson’s departure, Schultz served as interim CEO for a third time until Laxman Narasimhan was tapped to take over the role.
Narasimhan spent about a year as the company’s CEO.
Narasimhan became Starbucks CEO in March 2023 and was suddenly replaced in August 2024, with Starbucks Chief Financial Officer Rachel Ruggeri taking over as interim CEO, Fox Business reported.
His replacement came against a backdrop of union pressure and consecutive quarters of slowing sales.
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Laxman Narasimhan has been CEO of Starbucks for about a year. (Mat Hayward/Getty Images for AfroTech/Getty Images)
6. Brian Niccol
Niccol is the latest CEO of Starbucks. Before becoming CEO of Starbucks, Niccol spent six years as CEO of Chipotle.
He will officially assume the position of CEO and president on September 9, 2024.
“I have long admired Starbucks’ iconic brand, unique culture, and commitment to strengthening human connections around the world,” Niccol said in a statement about his new role. “As I embark on this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners while staying true to our mission and values.”
Brian Niccol took over from Narasimhan as CEO of Starbucks. (Robin Marchant/Getty Images/Getty Images)
The new job means quite a commute for Niccol. He lives in California and Starbucks headquarters is in Seattle.
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Starbucks said in a document filed with the Securities and Exchange Commission that Niccol “will not be required to relocate” to Seattle and agreed to “commute from your residence to the Company’s headquarters (and undertake other business travel) as required to carry out your job. duties and responsibilities.”