Newsletter 57: ☕ Starbucks Forgot Its Customers — How did the New Leadership Fix It?
Back in 2023, Starbucks was facing what some quietly called a “midlife crisis.”
On paper, things looked fine. Revenue was up. App orders were flying in. Stores were everywhere.
But something felt… off.
Baristas were burned out. Customers were frustrated. And the “third place” — that cozy space between home and work that Starbucks was once known for — had turned into a chaotic, digital, order-churning machine.
That’s when Laxman Narasimhan, the incoming CEO, did something few corporate leaders ever would:
He became a barista first.
Before officially taking over in March 2023, Narasimhan spent six months training as a barista in stores across the U.S.
Not in secret. Not for the cameras. He actually wore the green apron, manned the espresso machines, took orders, frothed milk, and dealt with real-life customers and complaints.
It wasn’t just a PR stunt. It was a masterclass in empathy-driven leadership — and, in hindsight, one of the smartest business pivots Starbucks has made in the past decade.
By 2022, Starbucks had leaned so heavily into mobile orders, loyalty points, and drive-thru traffic, the in-store experience began to suffer.
- Lines were long even if you ordered ahead.
- App glitches and store delays were common.
- Baristas were pushed to the brink, leading to unionization waves.
- Stores felt sterile and frantic, not warm or human.
The Starbucks that once sold a $7 latte with a smile started to feel like a fast-food chain with fancier milk.
Worse still? Customer loyalty was fading — not because of competitors, but because Starbucks forgot its own identity.
🧠 Enter: The Listening CEO
When Narasimhan stepped in, he didn’t bring a flashy tech vision or new product lines. He brought something deeper:
- A willingness to listen to frontline employees
- A focus on rebuilding operational trust
- And a mission to restore the soul of the brand
His goals were clear:
✔️ Fix store efficiency
✔️ Improve barista training and tools
✔️ Reconnect stores to their local communities
✔️ Rebalance automation with human touch
Most important of all, he understood that you can’t lead what you don’t live.
And in 2025, we now see the results.
📈 What Happened After
Two years later, the Starbucks brand has stabilized. Not dramatically — but quietly, intentionally.
Barista satisfaction scores are up. Store turnover has dropped.
Customer complaints on app delays and cold drinks? Down.
And the company is testing smaller, slower stores again — designed for people to stay, not rush.
In a world where AI and automation dominate headlines, Starbucks' rebound reminds us that people still matter.
💼 What You Can Learn (Even If You Don’t Run a Coffee Empire)
Whether you’re growing a business, building a side hustle, or managing a small team — this story teaches three priceless lessons:
- Walk the Floor – If you want to fix the system, you need to experience it from the ground up.
- Tech is a Tool, Not the Soul – Automation should enhance experience, not erase it.
- Fix Culture Before Growth – A demoralized team will kill brand love faster than any competitor can.
If you’ve felt disconnected from your work, or your hustle feels too “machine-like,” this is your sign to pause and reflect:
What made you fall in love with the idea in the first place?
And what would happen if you truly stepped into your customers' or team’s shoes?
👉 Running a Business? Want to Scale Without Burning Out?
If you’re a founder or entrepreneur trying to avoid the same mistakes Starbucks made, you’ll love this:
The Founder's Playbook — Free Newsletter for Entrepreneurs Like You
Learn how to:
✅ Uncover hidden obstacles limiting your growth
✅ Reclaim your time without sacrificing results
✅ Boost your leadership and decision-making
✅ Hear what’s working for founders just like you
💡 Join fellow founders building smarter, not harder.
🎯 Final Thought
Looking back, Laxman Narasimhan’s “barista first” move might have seemed small. Maybe even symbolic.
But in a world where too many leaders hide behind dashboards, he showed up at the espresso machine — and changed the culture from the inside out.
In 2025, that may be Starbucks’ real secret blend.
Stay sharp, stay spiky — be the hedgehog with a strategy
- Mindy
Founder, Hedgehog Huddle
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