In Schultz’s words, “We lost our way. We went back to start-up mode, hand-to-hand combat every day…with the kind of discussion and focus that probably we had not had as a company since the early days — the fear of failure, the hunger to win.” And the market seems to have responded in-kind.
Last week Starbucks reported that their first quarter net income rose $177.2 million from first quarter earnings this time last year. Revenue was up 4%, as were in-store sales. And their stock has tripled in the last year.
Schultz marks this as a return to “the authenticity of the coffee experience”. A return, no less, to what made Starbucks a once great brand.
His focus on that experience is leading the charge in regaining lost ground – and the revenues are following.
For more, read the recent NY Times article cited here & my previous posting Focus, In Memoriam
- Alvin Diec