By Hilary Russ

NEW YORK (Reuters) -Starbucks’ longtime former Chief Government Officer Howard Schultz will return quickly after Kevin Johnson mentioned on Wednesday that he’ll retire from the function on April 4, as a unionization drive at U.S. cafes heats up.

Shares of the espresso chain surged 7% on the information.

“Schultz is a revered chief and uniquely well-qualified to steward” the corporate, mentioned Credit score Suisse (SIX:) analyst Lauren Silberman.

Johnson signaled to the board of administrators a yr in the past that he may retire when the COVID-19 pandemic waned, he mentioned in an organization assertion.

Johnson, who’s 61, has been at Starbucks (NASDAQ:) for 13 years, the final 5 as CEO.

After the pandemic shuttered Starbucks cafes across the globe, the corporate, underneath Johnson’s watch, mentioned it could begin constructing some smaller shops with much less room for seating and extra emphasis on to-go and drive-thru orders.

Prospects additionally positioned extra orders by way of the Starbucks cellular app, however that has led to lengthy strains and overworked staff in some areas.

That barista burnout, in addition to accusations by some employees that they weren’t getting sufficient safety from the lethal virus when at work, contributed to a surge of union organizing in U.S. areas.

On Tuesday, a federal labor board accused Starbucks of unlawfully retaliating in opposition to two staff in a Phoenix, Arizona, cafe for attempting to unionize their retailer.

The identical day, a bunch of traders with $3.4 trillion underneath administration urged the corporate to cease sending anti-union communications to its staff and to undertake a impartial coverage in direction of unions.

The group, led by Trillium Asset Administration and SOC Funding Group, mentioned Starbucks risked damaging its constructive fame as a pro-employee model by combating the union.

Schultz has lengthy mentioned Starbucks didn’t want unions as a result of it really works so intently with staff, whom it calls “companions.”

He has already had a run-in with Employees United, the union now representing staff at six shops. Staff at greater than 140 shops in 27 states have requested for union elections within the final 7 months.

In November, Schultz spoke to staff who had been ordered to a big assembly with managers in Buffalo, the place the primary of Starbucks’ 9,000 U.S. firm areas have been deciding whether or not to hitch the union.

Within the assembly, Schultz likened Starbucks’ pro-employee stance to Holocaust prisoners in focus camps sharing blankets, in accordance with media reviews. The remarks led to backlash on social media.

“Schultz got here to Buffalo to union-bust,” wrote union organizer Jaz Brisack on Twitter (NYSE:) after the information. “His takeover is one other transfer in Starbucks’ ideological conflict on unions.”

Even so, Schultz is virtually synonymous with the corporate he took over in 1987. He expanded it right into a espresso behemoth that made venti cappuccinos a world phenomenon.

Johnson took the helm after Schultz resigned in 2017.

In a letter to staff on Wednesday, Johnson mentioned that he has “fond recollections of constructing drinks collectively, laughing collectively, and sharing tales with each other.”

The corporate mentioned it could present extra data throughout its annual shareholder assembly in a while Wednesday. The board expects to have chosen a brand new chief by the autumn, with assist from government search agency Russell Reynolds Associates, which it enlisted in 2021.