Since its founding in 1987 as a modest nine-store operation in Seattle, Washington, Starbucks had become the premier roaster, marketer, and retailer of specialty coffees in the world, with just over 32,000 store locations in 78 countries as of April 2020 and annual sales of $26.5 billion in fiscal year 2019, ending September 30, 2019. In addition to its flagship Starbucks brand coffees and coffee beverages, Starbucks’ has other brands and products specified in the case.


In January 2017, then CEO and company founder Howard Starbucks launched a somewhat grandiose strategic initiative to (1) open 20 to 30 Starbucks Reserve™ Roasteries and Tasting Rooms, which would bring to life the theater of coffee roasting, brewing, and packaging for customers, include a coffee bar with a full menu of coffee beverages, space for a mixology bar serving traditional Italian cocktails, and an upscale bakery; (2) open 1,000 Starbucks Reserve stores worldwide to bring premium experiences to customers and promote the company’s recently-introduced Starbucks Reserve coffees; and (3) transform about 20 percent of the company’s existing portfolio of Starbucks stores into Starbucks Reserve coffee bars.


However, shortly after announcing the initiative, Howard Schultz stepped down as Starbucks CEO, turning the role over to Kevin Johnson, Starbucks chief operating officer with whom Schultz had worked closely for the past two years.


What was Howard Schultz’s original strategic vision for Starbucks? How many times has his strategic vision changed or evolved into something different? Is Kevin Johnson likely to continue with Shultz’s latest strategic vision for Starbucks for several more years or is the vision likely to undergo change in 2020 and beyond?

What issues confront the company as of mid-2020? What should Kevin Johnson and other Starbucks senior executives be worried about?