Laxman Narasimhan: Brewing Leadership at Starbucks

“As a business that is anchored in human connection, the opportunities that we have are limitless. But in order for us to get limitless, we need to confront what limits us.”  -Laxman Narasimhan, Starbucks CEO 

Laxman Narasimhan, an Indian-American business leader, currently leads Starbucks as its Chief Executive Officer. His broad background and extensive experience bring a unique mix of cultural understanding, smart decision-making, and a commitment to excellence to the global coffee company. With Narasimhan leading the way, Starbucks is not just a business, rather it's a force for good, making positive changes and creating value for everyone involved. As he continues to innovate and push boundaries, Narasimhan's legacy as a leader who transforms and drives change will leave a lasting impact on Starbucks and the corporate world for years to come.

Laxman Narasimhan – Biography

Laxman Narasimhan - Personal Life
Laxman Narasimhan - Early Life
Laxman Narasimhan - Career
Laxman Narasimhan - Starbucks
Laxman Narasimhan - Investments
Laxman Narasimhan - Controversies

Laxman Narasimhan - Personal Life

Laxman Narasimhan, born on May 15, 1967, originally hails from India. His journey towards success began with a strong educational background. Having lived in various parts of the world, including the U.S., Canada, Latin America, Europe, Asia, and Africa, Narasimhan has gained extensive international experience. He holds a degree in Mechanical Engineering from the College of Engineering, University of Pune, India, along with an MA in German and International Studies from The Lauder Institute at The University of Pennsylvania, and an MBA in Finance from The Wharton School of The University of Pennsylvania. Fluent in six languages, Narasimhan is a family man, married with two children. His go-to Starbucks drink is a doppio espresso macchiato, with hot skim milk on the side.

Laxman Narasimhan - Early Life

In his early career, he navigated through the complexities of the consumer goods industry, sharpening his expertise in marketing, brand management, and business growth during notable roles at PepsiCo and McKinsey & Company. These foundational years showcased Narasimhan's natural talent for driving expansion and generating value, setting the stage for his rise to top corporate positions. As CEO of Reckitt Benckiser Group, a global leader in health, hygiene, and nutrition, Narasimhan displayed visionary leadership by leading transformative projects and strategic acquisitions that propelled the company to new levels of success. His time at Reckitt Benckiser was characterized by a commitment to innovation, sustainability, and meeting the changing needs of consumers. Before joining Starbucks, Narasimhan served as the Chief Commercial Officer (CCO) of PepsiCo and CEO of Reckitt. He took on the role of interim CEO at Starbucks in October 2022, before officially becoming CEO in April 2023, succeeding Howard Schultz. Narasimhan spent 19 years at McKinsey until 2012 when he advanced to the position of director and location manager of their New Delhi office. He then joined PepsiCo in 2012, ultimately rising to the role of Chief Commercial Officer.

Laxman Narasimhan - Career

As the leader of Starbucks, Narasimhan faces the significant challenge of guiding the renowned coffee chain through a constantly changing environment marked by evolving consumer tastes, technological advancements, and global events' effects. However, with his unmatched expertise and unwavering resolve, Narasimhan is ready to steer Starbucks toward a new phase of growth and innovation, reinforcing its status as a beloved brand known for quality, community, and social responsibility. Under his guidance, Starbucks is not just about selling coffee but also about driving positive change, using its influence to make a meaningful impact worldwide. From promoting sustainability to fostering diversity and inclusion within the company, Narasimhan remains committed to creating a better future for Starbucks and the communities it serves. His forward-thinking leadership and dedication to empowering others inspire trust and purpose among Starbucks employees, partners, and customers.

Before assuming the role of CEO, Narasimhan underwent six months of barista training at various Starbucks locations worldwide, including London, Amsterdam, Tokyo, Beijing, Shanghai, and Mexico City, to identify necessary changes. The New York Times has noted Narasimhan's comparatively more open stance towards Starbucks unionization than Schultz.

Drawing on his extensive experience with companies like PepsiCo and Reckitt, Narasimhan has successfully motivated talent to pursue future goals by prioritizing consumer-focused and digital innovations. During his time at Reckitt, he revitalized the company's culture to better fulfill its mission of promoting a cleaner, healthier world. He also led efforts to improve health and hygiene practices globally while enhancing operational sustainability.

At PepsiCo, Narasimhan held various leadership positions, including Global Chief Commercial Officer, overseeing long-term growth strategies and commercial capabilities. He also served as CEO of PepsiCo's Latin America, Europe, and Sub-Saharan Africa divisions, managing food and beverage operations across broad regions. Additionally, he held roles such as CEO of PepsiCo Latin America and CFO of PepsiCo Americas Foods.

Before joining PepsiCo, Narasimhan spent nearly two decades at McKinsey & Company, advising retail, healthcare, and consumer goods companies worldwide, and leading the firm's research on the future of retail.

He is actively involved in several organizations, serving as a trustee of the Brookings Institution, a member of the Council on Foreign Relations, a former member of the UK Prime Minister's Build Back Better Council, and a board member at Verizon.

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Laxman Narasimhan - Starbucks

Narasimhan introduced Starbucks' "Triple Shot Reinvention Strategy," revealing intentions to grow to 35,000 locations outside North America by 2030, with a goal of reaching 55,000 locations. The plan also includes a $3 billion cost-saving initiative and raises for baristas, aiming to double their hourly earnings by the end of fiscal 2025. This increase will come from both extended work hours and higher pay rates, compared to their earnings in fiscal 2020.

Laxman Narasimhan - Investments

On July 15, 2022, Laxman Narasimhan invested in Zamp. This investment, part of the Venture Round for Zamp, had a valuation of $25 million.

Laxman Narasimhan - Controversies

During Narasimhan's time at Reckitt Benckiser, there was a troubling incident involving the company's local branch, Oxy Reckitt Benckiser. Following the tragic deaths of several pregnant women due to lung issues, an investigation revealed that a harmful antibacterial substance in a humidifier cleanser was responsible. Narasimhan responded by meeting with a British survivor committee and personally apologizing to the South Korean independent commission investigating the case.

Additionally, Narasimhan faced criticism for his sudden resignation from Reckitt Benckiser in 2022, which caught investors off guard. His departure occurred during the implementation of a turnaround plan he had initiated in 2019.

FAQs

Who is Laxman Narasimhan?

Laxman Narasimhan is an Indian-American business executive and the chief executive officer of Starbucks.

What is the net worth of Laxman Narasimhan?

The net worth of Laxman Narasimhan, CEO of Starbucks in 2023 was $23 million.

Is TATA the owner of Starbucks?

TATA Starbucks Private Limited, previously recognized as Tata Starbucks Limited, is a collaborative enterprise equally owned by Tata Global Beverages and Starbucks Corporation. This entity manages and runs Starbucks stores across India.