Starbucks names former Reckitt head as next CEO

Starbucks Corp. announced on Thursday that Laxman Narasimhan would become a new CEO. He is known for revitalizing Reckitt, the maker of Lysol disinfectants. Laxman Narasimhan will take over Starbucks to get involved with the reinvention of the world's largest coffee chain. 

The company is also in the process of reviewing its business model. Starbucks wants to move away from the usual business model — cafes where customers spend a lot of time. Instead, the company management wants to shift focus to mobile pickup and delivery. Higher costs for ingredients and labor influenced this decision. In addition, anti-COVID restrictions in China have slowed the growth of the U.S. coffee chain in one of its largest foreign markets.

Narasimhan will join the company in October. However, he will not take the reins of the coffee chain until April 2023. Before that, he will be fully immersed in the company and will spend time learning about the "Reinvention" plan. It aims to raise wages for baristas, improve employee welfare and customer experience, and create a new concept of stores. 

Until then, Howard Schultz will continue as Starbucks CEO. Schultz has been at the helm since April, when Kevin Johnson stepped down. 

According to Schultz, Laxman Narasimhan can be described as a strategic and transformational leader who brings experience building influential consumer-facing brands.