Starbucks Appoints Reckitt Benckiser CEO as New CEO

Starbucks Corporation (SBUX) has appointed Laxman Narasimhan as the next CEO, choosing an executive credited with reviving the manufacturer of Lysol disinfectants to “reinvent” the world’s largest coffee chain. Reckitt Benckiser is the company that manufactures Durex condoms, Enfamil infant formula, and Mucinex cold syrup. Narasimhan served as the CEO of Reckitt Benckiser. Reckitt’s shares on the FTSE dropped by 4% after he announced his intention to leave this position earlier in the day.

The coffee shop chain Starbucks is going through a difficult time right now. Over 200 of its locations in the United States have joined a union over the last year, and employees were agitating for increased benefits and compensation amid growing inflation. Additionally, the corporation is modifying its business model by concentrating on cafés that promote lengthier stays, mobile pickup, and delivery. However, the firm is experiencing increased prices for both ingredients and labor. 

Additionally, restrictions placed in China due to COVID-19 have resulted in a delay in commercial activity for the American coffee giant in one of its most important foreign markets. Narasimhan will join Starbucks in October but will take the helm in April 2023, spending several months studying the company and its “Rethink” plan, which includes raising barista salaries, improving employee welfare and customer service well, and rethinking stores. Until then, interim CEO Howard Schultz, who took over the reins of the company for the third time in April after Kevin Johnson retired, will continue to lead the company.