Starbucks has made major personnel adjustments, strengthened leadership accountability, and accelerated its return to its roots

A few days ago, Starbucks’ official website published an open letter from Starbucks Chairman and CEO Brian Niccol, which announced a series of personnel changes at Starbucks, including Mike Grams will assume the position of chief operating officer, and the chief legal officer will also leave. Ni Ruian said that the purpose of the adjustment is to accelerate the return to the original intention. However, this personnel adjustment does not involve the Chinese market, and Liu Wenjuan, CEO of China, still reports directly to Ni Rui’an.

Specifically, Mike Grams will take on the role of Chief Operating Officer (COO). In addition to leading Starbucks’ North American coffee business, Mike Grams will be responsible for global coffee shop development and global supply chain. Meredith Sandland, Executive Vice President and Chief Development Officer, and Sanjay Shah, Executive Vice President and Chief Supply Chain Officer, will report to Mike Grams.

Commenting on the change, Ni said in an open letter: “I am pleased to bring these functions together to enhance the design, construction and operation of Starbucks coffee shops, and to build a world-class supply chain. ”

Michelle Burns, Executive Vice President and Global Coffee & Sustainability Officer, will report to Tressie Lieberman, Executive Vice President and Global Chief Brand Officer. Deb Hall Lefevre, Executive Vice President and Chief Technology Officer, will report to Cathy Smith, Executive Vice President and Chief Financial Officer.

Brad Lerman, executive vice president and chief legal officer, will leave Starbucks in the coming months.

Regarding the adjustment, Ni Ruian said that as mentioned in the last quarterly communication meeting and earnings call, Starbucks’ performance has not yet met expectations. Starbucks is making the necessary changes to get back on track with Starbucks. Ni has heard positive feedback from partners and customers, and has seen the results of the pilot project.

Returning to its original intention, it is to emphasize that Starbucks should be centered on coffee and customers.

“We are on the right path, but we need to pick up the pace. We will make additional organizational changes to facilitate closer collaboration among teams, strengthen leadership accountability, and enable teams to work with greater clarity and urgency. Ni Rui’an said.

In the Chinese market, Liu Wenjuan reports directly to Ni Rui’an as the CEO of China business. China is Starbucks’ second-largest market. In the second quarter of fiscal 2025, Starbucks China’s operating income reached $739.7 million, up 5% year-over-year. In all types of business districts, different city levels, and all business hours, same-store transactions increased year-on-year, achieving a growth of 4%. By the end of the second quarter, Starbucks had 7,758 stores in China, covering more than 1,000 county-level markets.