Former Starbucks Corp. Chief Executive Officer Howard Schultz recently addressed the coffee chain’s significant sales miss, advising the company to take responsibility for its failures and work on improving operations. Following a period of declining sales, Schultz emphasized the importance of acknowledging shortcomings and focusing on core principles without making excuses.

Starbucks experienced a notable drop in sales, leading to a decline in its stock value. Factors such as challenges in attracting budget-conscious consumers amidst inflation and adverse weather conditions impacting store traffic contributed to the decline in performance. Despite these setbacks, Starbucks’ shares remained relatively stable following the announcement.

Despite stepping down from his role as CEO in 2023, Schultz continues to hold a significant stake in the company as its fifth-largest shareholder. He highlighted the need for management to prioritize interactions with frontline employees and suggested improvements to the mobile ordering system to enhance customer experience.

To address its performance issues, Starbucks has implemented various strategies, including reducing wait times, meeting morning demand, and introducing new products like a boba tea-inspired beverage. Schultz emphasized the importance of revamping the company’s go-to-market approach with innovative coffee offerings to differentiate itself in the market and maintain its premium status.

Starbucks has also faced challenges in China, where local competitor Luckin Coffee Inc. surpassed the chain in annual sales, posing a threat to its market dominance. Despite a decline in same-store sales in China, Schultz expressed confidence in the brand’s resilience and anticipated a recovery in the Chinese market.

Looking ahead, Schultz emphasized the need for Starbucks to prioritize experiential elements over transactional aspects, focusing on creating unique experiences for customers. With a commitment to innovation and a customer-centric approach, Starbucks aims to regain its competitive edge and strengthen its position in the market.