Interview, Fireside Chat
From “The Way Forward" Conference: Kevin Johnson, President and CEO, Starbucks Coffee Company
- Kevin Johnson identified the primary challenge as managing responses across over 32,000 stores in 80+ countries while maintaining company culture during the pandemic's early phase.
- Starbucks utilized a distributed leadership model guided by three core principles: prioritizing partner/customer safety, supporting government health officials, and maintaining constructive community engagement.
- A specific "playbook" developed in China, where the pandemic originated, served as the foundational guideline for global adaptations, though local execution remained market-specific.
- Johnson emphasized that 90% of Starbucks stores in China were closed at the peak of the initial "mitigate and contain" phase, with only locations serving frontline health responders remaining open.
- The company transitioned from containment to a "monitor and adapt" phase, implementing strict store protocols including daily temperature checks, facial coverings, surface sanitization, and modified mobile order/curbside pickup.
- Starbucks adapted its China learnings to the U.S. by constructing a digital dashboard utilizing artificial intelligence to merge government COVID-19 case feeds by county with store locations and partner/customer sentiment data.
- Approximately 3,000 Starbucks partners participated in a virtual family meeting held following the murder of George Floyd, facilitating open dialogue on racial injustice.
- The company hosted a prior "courageous conversation" following the 2018 Philadelphia racial bias incident, resulting in the decision to close 8,000 U.S. stores for a day of anti-bias training.
- Starbucks has established a culture of "pour-over sessions" over the last two years to maintain ongoing dialogue regarding race, racism, and corporate responsibility.
- The company is currently prioritizing "safe, familiar, and convenient" experiences, leveraging drive-throughs, mobile pickup, and delivery while slowly reintroducing limited seating in select markets.
- The Starbucks mobile app, used by tens of millions of Americans, serves as a critical digital asset for maintaining customer engagement and safety during the shift toward on-the-go consumption.
- Johnson anticipates a long-term balance between traditional in-store "third place" experiences and mobile convenience, contingent upon the availability of vaccines and effective treatments.
- Johnson cited personal use of transcendental meditation (20 minutes twice daily) and playing the guitar as essential mechanisms for maintaining mental balance and resilience during the crisis.