Starbucks Corporation announced that Anand Varadarajan will become its chief technology officer, with the transition taking effect on January 19, 2026. Varadarajan joins the company after nearly two decades at Amazon, where he led technology and supply‑chain operations for the grocery businesses, including Whole Foods and Amazon Fresh.
Varadarajan’s background in large‑scale retail technology is intended to accelerate Starbucks’ “Back to Starbucks” turnaround strategy, which focuses on improving labor efficiency, streamlining store operations, and enhancing the customer experience across company‑operated stores. The appointment follows the departure of former CTO Deb Hall Lefevre in September 2025 and comes as Starbucks implements a $1 billion restructuring plan announced in September 2025 to address declining comparable store sales, margin pressures, and competitive challenges.
Starbucks’ Q3 fiscal 2025 results highlighted the urgency of the restructuring: revenue rose 4% to $9.5 billion, but net income fell 47% to $558.3 million and earnings per share missed expectations by $0.15. Global comparable store sales declined 2% in the quarter, marking the sixth consecutive U.S. quarter of decline. The company’s operating margin contracted to 9.9% from 10.2% year‑over‑year, reflecting pricing pressure and the cost of investing in technology and labor. These financial headwinds underscore why the company is prioritizing technology leadership to drive operational excellence and cost discipline.
CEO Brian Niccol emphasized that Varadarajan will report directly to him and will focus on building reliable, secure systems to support the company’s digital and in‑store initiatives. Niccol noted that technology is a key enabler for the “Back to Starbucks” strategy, stating that “modernizing our technology stack will be critical to improving speed of service, reducing operational costs, and delivering a consistent customer experience.” The appointment signals the company’s commitment to leveraging technology to reverse margin erosion and restore growth.
The move is expected to accelerate the rollout of new digital tools, such as an upgraded mobile ordering platform and AI‑driven inventory management, which are designed to reduce waste, improve supply‑chain visibility, and enhance the in‑store experience. By integrating Amazon’s expertise in large‑scale retail operations, Starbucks aims to reduce technology costs, improve system reliability, and create a more agile platform that can adapt to changing consumer preferences and competitive pressures. The appointment is a strategic step toward achieving the company’s long‑term goal of sustainable profitability and a stronger competitive position in the global coffee market.
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