Starbucks founder Howard Schultz on new CEO: I am never coming back again, we found the right person

I know this has been big news and a lot of anticipation about who was going to ultimately be the new CEO of this company Howard. So take us through how did this happen? Yeah. How did you get to know him? Sure. How did you decide this was going to be the next CEO? Sure. Well first of all it's a great day for Starbucks. I feel like we have a number one draft choice and so excited but let let's look at the landscape of Starbucks. 35,000 stores around the world. Our ambition has never been greater than it is today. A lot of people interested in this job. We took our time. Melody did a great job. The search committee did a great job. Melody Hobson, chair of the board. Yeah. But when we met Laxman, what I saw in him was somebody who is a a global citizen, a world-class operator, an entrepreneur, and he's got he's got that DNA all over and everything he's done. But most importantly someone who's steeped in humility and understands and respects the culture and values of Starbucks coffee company. He's going to be a great great leader for the future of our company. Okay. It's probably you can put earmuffs on. It's hard to hear all this stuff while somebody's you know especially someone who's modest about this stuff. But history here. You worked at McKinsey, PepsiCo. We were talking by the way you worked with Brian Cornell. We're talking with Brian's news this morning. And then a remarkable turnaround at record. My question is really actually though to Howard. In terms of that sort of background, what was it especially when you're looking at a lot of other candidates at the time you said okay this is it? Well look at his experience. I mean he's been 19 years at McKinsey, worked at Pepsi. In every aspect of his experience at McKinsey, you can check every box as a world-class operator. But when he met our people, when I walked the stores with him, what I saw was somebody who truly understands the emotional connection that our people have with our customers. He understands what it means to be a merchant. Our ambition in China has never been greater than it is today. We open more than one store a day in China. He has significant experience in China. But the partnership that we're going to create in terms of the future of the company and he understands the ambition we have well beyond where we are today. Okay and you're doing something quite unusual which is first of all you're starting in October but you don't take over the actual role until April. Correct. And what's behind that and what are you planning to do? I know you're gonna go on a tour of sorts with Howard over the next several months. Well Howard and I co-created this. Essentially I'm a sitting CEO but as of October 1st I have no P&L. I have no budget. I have no people reporting to me. It's actually very liberating experience in so many ways and it's a unique opportunity for me to apprentice very close to an iconic founder in an iconic company with an iconic brand. And what we're doing is a very structured immersion process which involves connecting with partners, connecting in stores. It's about understanding the support center, what all happens there. It's six months really of learning and getting steeped in the culture. I have a culture coach who was with me pretty much the entire journey and so we're building this in a very structured manner so at the end of it I'm ready to take over and we'll do so in the early part of next year. There are a lot of CEOs that say this is a crazy way to do it right. I mean a lot of people because in a way this is somewhat brave thing to do insofar as and I hope this doesn't happen I mean you're gonna spend time with him he won't even be in the role. I mean there's gonna be this transition period you could say I don't know if I like this. No no we have spent a great deal of time together over the last few months. We know each other very well but I think it really speaks to the humility and the confidence that we have in each other, we have in the future of the company and we're gonna take our time, be very deliberate and put Yet Laxman in a position to succeed and I think we're gonna have a great time by the next few months. Okay I don't know if you can answer this honestly, what is the part that you're worried about most? This is a big job for you. Sure I think first of all it's a very special company and nothing in my past could fully prepare me for it but at the same time a lot of things that I've done in the past that I could bring to bear for this company. The one thing that I wanted to be sure of is that you know that there would be investments made in order for us to renew the partner experience in order for us to rethink the customer experience and some of the things Howard has done ever since he's come in, in terms of some of the bold decisions he's made, made me actually a lot more comfortable so I'm at peace. How is this gonna be different than last time as they say Howard and the reason I ask is there have been periods where you have left Starbucks, you've appointed a new CEO for whatever reason it didn't work out and you decided you had to come back. Yeah that's now happened twice. Why is this different? Well first off I'll tell you why it's different. I'm never coming back again because we found the right person but the ambition of Starbucks is much grander than ever before and the leadership team coupled with Laxman's leadership it's much different than ever before. Also in 2008 when I did come back Starbucks was in a much different position. We did not have demand in our stores. We have record demand today. Laxman's coming in with the wind that is back and so the growth of the company, the equity of the brand, the significant position that Starbucks occupies in China is very very different but Andrew I'm not coming back a third time. Laxman is here. I'm here to support him and as I said before we found a number one draft choice, the best possible candidate in the world to lead Starbucks. Shepard Smith here. Thanks for watching CNBC on YouTube.