Sponsored By

Starbucks CEO Laxman Narasimhan is making store-level changes after training as a baristaStarbucks CEO Laxman Narasimhan is making store-level changes after training as a barista

After experiencing product shortages and burning his hand on a sandwich, Narasimhan is introducing store-level changes to combat employee frustration

Joanna Fantozzi, Senior Editor

September 28, 2023

2 Min Read
Nation's Restaurant News logo in a gray background | Nation's Restaurant News

Joanna Fantozzi

New Starbucks CEO Laxman Narasimhan, who took the reins from controversial Starbucks founder and multi-time CEO Howard Schultz in March 2023, gained a lot of internal company and external media attention for training for six months as a barista in the leadup to the company’s executive leadership change. As it turns out, Narasimhan’s training as a barista and observation of multiple stores was the basis for new changes that he will be rolling out to make store-level operations easier and more efficient.

In an exclusive interview with The Wall Street Journal, Narasimhan spoke about his journey toward learning how to make the proper latte, how he often made mistakes during his training period, and how there seemed to always be an undercurrent of tension and anxiety in many high-traffic stores, especially when it comes to keeping up with orders. In one store, Narasimhan said that he had to repeatedly apologize to customers after a store ran out of breakfast sandwiches, and noted the pressure of a café manager calling out the average time it was taking to process orders in another store. Narasimhan even burnt his hand on too-hot melted cheese while trying to rush an order.

“Having worked as a partner, it’s clear to me that there are things that we need to do,” Narasimhan told The Journal.

Related:Howard Schultz steps down from Starbucks board

The new Starbucks CEO—now with a half-year of leadership under his belt — is not just combatting the pressure of long drive-thru lines or fumbling the proper latte ratios, he is also taking the opportunity to try and smooth relations between store-level employees and the Starbucks corporation. Over the past two years, a growing union movement in Starbucks has put a spotlight on not only the company’s aversion to unionization, but also ongoing tensions between the two sides of the business. One barista even told The Wall Street Journal that she thought Narasimhan’s in-store training was more akin to a photo opportunity than an opportunity to learn anything substantial.

The Starbucks CEO said that he learned a lot about the pressure and challenges baristas face daily and will begin implementing changes based on what he’s spoken with employees about and/or observed firsthand. For example, Narasimhan said they will begin cutting down on digital communications corporate sends to stores (addressing one common complaint), will get more breakfast sandwiches to stores to address shortages, and they will redesign the bags sous vide eggs come in, as these are oftentimes hard for employees to open, especially when under time pressure.

Related:Starbucks U.S. growth slows as company escalates reinvention plan

Whether or not these everyday tweaks and changes will be enough to quell not only the wave of unionization, but also growing animosity between the Starbucks Workers United union and its parent company remains to be seen, but it could be an important first step.

Contact Joanna at [email protected]

Read more about:

Starbucks

About the Author

Joanna Fantozzi

Senior Editor

Joanna Fantozzi is a Senior Editor for Nation’s Restaurant News and Restaurant Hospitality. She has more than seven years of experience writing about the restaurant and hospitality industry. Her editorial coverage ranges from profiles of independent restaurants around the country to breaking news and insights into some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s.  

Joanna holds a bachelor’s degree in English literature and creative writing from The College of New Jersey and a master’s degree in arts and culture journalism from the Craig Newmark Graduate School of Journalism at CUNY. Prior to joining Informa’s Restaurants and Food Group in 2018, she was a freelance food, culture, and lifestyle writer, and has previously held editorial positions at Insider (formerly known as Business Insider) and The Daily Meal. Joanna’s work can also be found in The New York Times, Forbes, Vice, The New York Daily News, and Parents Magazine. 

Her areas of expertise include restaurant industry news, restaurant operator solutions and innovations, and political/cultural issues.

Joanna Fantozzi has been a moderator and event facilitator at both Informa’s MUFSO and Restaurants Rise industry events. 

Joanna Fantozzi’s experience:

Senior Editor, Informa Restaurant & Food Group (August 2021-present)

Associate Editor, Informa Restaurant & Food Group (July 2019-August 2021)

Assistant Editor, Informa Restaurant & Food Group (Oct. 2018-July 2019)

Freelance Food & Lifestyle Reporter (Feb. 2018-Oct. 2018)

Food & Lifestyle Reporter, Insider (June 2017-Feb. 2018)

News Editor, The Daily Meal (Jan. 2014- June 2017)

Staff Reporter, Straus News (Jan. 2013-Dec. 2013)

Subscribe Nation's Restaurant News Newsletters
Get the latest breaking news in the industry, analysis, research, recipes, consumer trends, the latest products and more.