Schultz will now become Starbucks' executive chairman and will focus on new innovation, design and development of Starbucks brands around the world. Taking over as CEO will be current Starbucks President and Chief Operating Officer and long-time board member Kevin Johnson.
On April 3, Starbucks sbux will be handed off to President and Chief Operating Officer Kevin Johnson, who first joined Starbucks' management team back in early 2015 after Troy Alstead made a decision to take a sabbatical after 23 years with the company.
Schultz will remain involved with the company as executive chairman, focusing on strategic initiatives including Starbucks Reserve Roasteries and retail stores, and social issues.
Schultz will become executive chairman in April to focus on innovation and social impact activities, the Seattle-based chain announced Thursday. "As I focus on Starbucks next wave of retail innovation, I am delighted that Kevin Johnson - our current president, coo, a seven-year board member and my partner in running every facet of Starbucks business over the last two years - has agreed to assume the duties of Starbucks chief executive officer".
Howard Schultz, who had left the company in 2000, returned and is credited with getting the company back on track. He has overseen the expansion of the chain's food and beverage offerings and the growth of its popular loyalty program and mobile app.
The company's sales have grown impressively in the US, although they've slowed more recently. Schultz has said such technology adaptions will become increasingly critical for brick-and-mortar retail businesses to thrive as shopping habits change.
Tallow tensions: Vegans want 'fat-free' UK 5-pound bank note
Clive Shrubsole, a researcher at University College London and a vegetarian, called for the notes to be removed from circulation. The Bank claims it was unaware of the traces of tallow when it signed the production contract with supplier Innovia.
Shares of Starbucks slid 3.6 percent to $56.44 in after-hours trading. He said Johnson has provided "invaluable insights" to the company in the past. His duties will also include developing new technologies for Starbucks stores, like the company's recent foray into carbonated "nitro" cold brew.
Kevin Johnson and Howard Schultz.
Schultz, a Brooklyn native, is said to have a personal net worth of $3.1billion, earning him the distinction of being the 595th richest person in the United States, Forbes reported.
"I'm not leaving the company", Schultz said. The coffee executive had been vocally political during the 2016 election season, telling CNN's Poppy Harlow, "I think it's obvious that Hillary Clinton needs to be our next president" in September.
Schultz has been instrumental in growing Starbucks' business, first joining the company in 1982, as director of operations.