Business

Howard Schultz has led Starbucks as CEO three different times

Starbucks, American coffee company, has run through several CEOs since it first went public and has experienced its fair share of drama. 

The origins of the massive coffee chain date back to 1971, when the first store was opened by three friends — Gerald Baldwin, Gordon Bowker and Zev Siegl. 

The first store was opened in Seattle, and each of the men invested $1,350 from their own pockets and borrowed $5,000 from a bank, according to Starbucks’ website.

Former Starbucks CEO Howard Schultz with Starbucks logo in background

Howard Schultz has served as the 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 much different than it is today.

At its start, Starbucks sold products to be used at home, like coffee beans and teas. It wasn’t until Howard Schultz bought the company in 1987, that Starbucks became a café selling a variety of beverage products. 

Since the company went public in 1992, Starbucks has gone through six CEOs, with Brian Niccol officially joining Starbucks Sept. 9, 2024. 

  1. Howard Schultz
  2. Orin C. Smith
  3. Jim Donald
  4. Kevin Johnson
  5. Laxman Narasimhan
  6. Brian Niccol

1. Howard Schultz

Schultz was the first CEO of Starbucks. He held the role three different times through his long involvement with the company. 

After joining Starbucks’ team as the director of operations and marketing in 1982, he took a trip to Italy in 1983, where he became enamored with how coffee was sold and enjoyed. He was determined to bring what he discovered to the United States. 

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Howard Schultz at Senate hearing

Schultz played a huge role in the initial expansion of Starbucks.  (Anna Moneymaker/Getty Images / Getty Images)

“In each shop I visited, I began to see the same people and interactions, and it dawned on me that what these coffee bars 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 was not initially well-received by the founders, so he started his own coffeehouses called II Giornale before purchasing Starbucks in 1987, according to the company website. 

During his first years as CEO, Schultz greatly 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 stepped down in 2000, he still remained involved in the company as the global chief strategist and chairman. 

But it was not the end of his time as CEO. He later returned to that role in 2008 until 2017, and then had a brief return as interm CEO from April 2022 until March 2023. 

2. Orin C. Smith

After Schultz’s first departure as Starbucks’ CEO, Orin C. Smith took on the role from 2000 until 2005. 

Smith, like Schultz, played a large role in the coffee chain’s expansion.

He held many leadership roles in the company before becoming CEO. Smith worked as a chief financial officer, then became president and chief operating officer, leading to his start as CEO.

Former CEO of Starbucks Orin Smith

Orin C. Smith was the CEO of Starbucks from 2000 to 2005.  (Yosikazu Tsuno/AFP via Getty Images / Getty Images)

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When he started as a chief financial officer, there were 45 Starbucks locations, according to Investopedia. When he retired in 2005, Starbucks operated 9,200 stores globally. 

Smith died March 1, 2018, of pancreatic cancer. 

3. Jim Donald

Jim Donald’s stint at Starbucks was fairly brief.

He became the company’s CEO in 2005 and maintained the position until 2008. 

Before becoming CEO of the company, he worked as the president of the North American division, which he began in 2002. 

Former Starbucks CEO Jim Donald

Jim Donald spent around three years as Starbucks’ CEO.  (Daniel Acker/Bloomberg via Getty Images / Getty Images)

Following his three years at Starbucks, he continued to lead other companies as a CEO, including Pathmark Supermarkets, Extended Stay Hotels and Albertsons, the grocery company.

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Donald has served as co-chairman of Albertsons since April 2019. 

4. Kevin Johnson

Next in Starbucks’ CEO lineup was Kevin Johnson. He assumed the role following the second term of Schultz as CEO. Johnson was CEO from 2019 until 2022.

Prior to being CEO of Starbucks, he worked at Microsoft for 16 years, according to Starbucks’ website, and was the CEO of Juniper Networks. 

He was also appointed to the National Security Telecommunication Advisory Committee in 2008, where he worked under George W. Bush and Barack Obama. 

His time at Starbucks began in 2009 when he joined the board of directors. Years after working with the company, he would become its leader. 

Former Starbucks' CEO Kevin Johnson

Microsoft was one of the companies Kevin Johnson was part of before Starbucks.  (Scott Olson/Getty Images / Getty Images)

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“About three years ago, the night before we made the public announcement that Howard would be stepping out of the role of CEO and I would succeed him, we closed our Pike Place store early. Now, the Pike Place store was the very first Starbucks store in Seattle,” Johnson shared with the Harvard Business Review in 2019. 

“That evening Howard, myself and the leadership team sat together on the hard wooden floor that millions and millions of customers and Starbucks partners have walked across over the decades. And we shared stories. And, at one point, Howard stood up, reached into his pocket, and pulled out a key. 

“And he said, ‘Kevin this is my personal key to the Pike Place store. It is a key that I’ve carried with me for decades. And I want to present you this key as a symbol of this transition.’ I carry that key with me wherever I go. Because that key is a symbol of the responsibility that 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, the world will pass us by.”

Johnson was the CEO of Starbucks until 2022. 

5. Laxman Narasimhan

After Johnson’s departure, Schultz held the role for a third time as interim CEO until Laxman Narasimhan was chosen to take on the job. 

Narasimhan spent just around a year as the company’s CEO. 

Narasimhan became CEO of Starbucks in March 2023 and was abruptly replaced in August 2024, with Starbucks’ Chief Financial Officer Rachel Ruggeri stepping in as interim CEO, Fox Business reported. 

His replacement came amid unionization pressures and back-to-back quarters of slowing sales. 

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Laxman Narasimhan

Laxman Narasimhan was CEO of Starbucks for about a year.  (Mat Hayward/Getty Images for AfroTech / Getty Images)

6. Brian Niccol

Niccol is Starbucks’ latest CEO. Prior to becoming CEO of Starbucks, Niccol spent six years as CEO of Chipotle. 

He will officially take over as CEO and chairman on Sept. 9, 2024. 

“I have long admired Starbucks’ iconic brand, unique culture and commitment to enhancing human connections around the globe,” Niccol said in a statement about his new role. “As I embark upon 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

Brian Niccol took over for Narasimhan as Starbucks’ CEO.  (Robin Marchant/Getty Images / Getty Images)

The new job comes with quite a commute for Niccol. He lives in California, and Starbucks’ headquarters is in Seattle. 

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Starbucks said in a filing with the Securities and Exchange Commission that Niccol “will not be required to relocate” to Seattle and has agreed to “commute from your residence to the Company’s headquarters (and engage in other business travel) as is required to perform your duties and responsibilities.”

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