New Delhi: Starbucks has named Brian Niccol, the chairman and CEO of Chipotle, as its new CEO. He will take over the coffee giant starting on September 9, replacing Laxman Narasimhan, who has been with the company since March 2023.
Notably, the coffee giant is struggling with weak demand and disgruntled investors and made this decision to revive flagging sales and appease outside investors.
Starbucks Share
Starbucks shares jumped more than 13 per cent before the market opened. Narasimhan, a longtime PepsiCo executive who has also served as the CEO of Reckitt, a UK-based consumer health company, became Starbucks’ CEO in March 2023. He succeeded Howard Schultz, the longtime Starbucks leader and chairman emeritus who came out of retirement in 2022 to serve as the company’s interim CEO.
But investors quickly soured on Narasimhan as the company’s sales weakened and it dealt with multiple issues, including competition from lower-cost competitors in China and boycotts in the Middle East and elsewhere because of its perceived support for Israel.
Mellody Hobson, the chair of Starbucks’ board of directors, said Niccol has transformed Chipotle since becoming its CEO in 2018 by focusing on menu innovation, operational excellence and digital transformation.
“Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth,” Hobson said in a statement. “Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience,” Schultz said he has long admired Niccol.
He further said, “I believe he is the leader Starbucks needs at a pivotal moment in its history”. (With Inputs From AP)