Schultz Back as Starbucks CEO
But Schultz also placed much blame squarely on the company itself. Starbucks' share price has sunk nearly 50% since the beginning of the year.
"I think it's one thing to look at the economy and commodities and use that as a buffer, but I strongly believe that much of the problems we have is self-induced," he said.
Rapid growth has led to unwieldy bureaucracy within the company, which Schultz said he plans to eliminate. He noted that Starbucks has lost its focus on its customers, allowing competitors to swoop in and replicate its business model.
Last February, Schultz put out a memo in which he spelled out much of what he thought had gone wrong with the company."Over the past 10 years, in order to achieve the growth, development, and scale necessary to go from less than 1,000 stores to 13,000 stores and beyond, we have had to make a series of decisions that, in retrospect, have lead (sic) to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand," he wrote. On Monday, he reiterated some of those same criticisms, adding that Starbucks must work harder to distinguish itself from its competitors. "I am not satisfied with where the business has been with our relationship with our customer," Schultz said.
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