Starbucks Appoints Brian Niccol as CEO, Replaces Laxman Narasimhan
Washington: In a surprising development, Starbucks announced on Tuesday that Brian Niccol, the current CEO of Chipotle Mexican Grill, will be taking over as chairman and chief executive officer of the struggling coffee giant. Niccol’s appointment is set to begin on September 9, as per the company’s press release. Until then, Starbucks’ Chief Financial Officer Rachel Ruggeri will serve as interim CEO.
Niccol, who has been at the helm of Chipotle since 2018, will become Starbucks’ fourth CEO in just two years. Under Niccol’s leadership, Chipotle experienced a remarkable turnaround, with revenue nearly doubling, profits increasing nearly sevenfold, and the company’s stock price soaring by nearly 800 percent. His focus on people and culture, menu innovation, and digital transformation has been credited with setting new industry standards and driving significant growth.
“His exceptional career and proven track record in driving innovation and growth make him a perfect fit for Starbucks,” said Mellody Hobson, Starbucks’ new lead independent director. Hobson praised Niccol as a “culture carrier” who understands the importance of an outstanding partner experience in delivering a remarkable customer experience.
Niccol expressed enthusiasm about his new role, stating, “I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners.”
Laxman Narasimhan, the outgoing CEO, is stepping down from both his role and the Starbucks board with immediate effect. Narasimhan, who took over as CEO in March 2023, faced challenges during his tenure, including a recent 3 percent drop in global sales at stores open for at least a year and a 2 percent decline in North America. Despite his efforts to improve partner experience and innovate the supply chain, the company struggled to regain its footing under his leadership.
“On behalf of the board, I want to sincerely thank Laxman for his contributions to Starbucks, and his dedication to our people and brand,” said Hobson.
The appointment of Niccol comes at a crucial time for Starbucks as the company seeks to reinvigorate its brand and operational performance.
