It was a dramatic and unprecedented move by the once and present chief of Starbucks. Schultz had built the company, turned it into one of the world’s best-known brands, run it for many years, moved away from day-to-day running of the business as chairman, then became so concerned that he felt compelled to return as CEO in January 2008. He came back because he believed that Starbucks had ‘lost its soul’. He was determined that it would recover its soul, by returning to the principles, values and spirit that had created the Starbucks brand. The one-day store closure was to retrain the baristas, to reassert the Starbucks romance with coffee. This came with a huge risk and cost – actual and potential – but it paid off. Stock that had been trading at $7 subsequently rose to $55 after Schultz’s return to brand principles. Howard Schultz tells the story of the turnaround in his book Onward, a stirring tale of leadership in the face of adversity. Starbucks has now bounced back in the eyes of Schultz, customers and business analysts.
