Leadership Shakeup at Starbucks
Starbucks, which supplies a range of products to grocery stores and partners with retailers around the world to operate in-store coffee cafes, is switching up its leadership team. The Seattle-based company named Brian Niccol as its chairman and CEO, replacing most recent CEO Laxman Narasimhan.
Niccol will formally step into the position on Sept. 9. Narasimhan’s exit is immediate and, in the interim, CFO Rachel Ruggeri will lead the organization. Current Board Chair Mellody Hobson will become lead independent dir4ector, Starbucks reported.
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Starbucks hired Niccol away from Chipotle, where was chairman and CEO. During his nearly six-year tenure at the restaurant chain, he led a transformation of the foodservice operation that resulted in a close to sevenfold increase in profits. He was also an executive at Taco Bell, moving up from chief marketing and innovation officer to president and then CEO. He began his career in brand management at Procter and Gamble and earned an MBA from the University of Chicago Booth School of Business and an undergraduate degree from Miami University.
The new Starbucks CEO also has a retail background. He currently serves on the board of directors at Walmart, Inc.
“We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself. Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth. Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience,” declared Hobson. “Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”
Founder and Chairman Emeritus Howard Schultz also weighed in on the move. “Having followed Brian’s leadership and transformation journey at Chipotle, I’ve long admired his leadership impact. His retail excellence and track record in delivering extraordinary shareholder value recognizes the critical human element it takes to lead a culture and values driven enterprise. I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support,” he said.
Niccol said he has admired the brand and unique culture at his new company. “As I embark upon this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values,” he remarked.
The change at the top follows a tough third quarter at Starbucks. In July, the company reported a 3% downturn in global comparable company-owned store sales. Net revenue at licensed stores, meanwhile, rose 1.4% during Q3.
In other company news, Starbucks is moving into pumpkin pie season. Last week, it rolled out Pumpkin Spice flavored coffees to grocery shelves, with a lineup that includes fall coffees and creamers. New to the collection: Starbucks Smoked Butterscotch Flavored Coffee available in roast, ground and K-Cup pods.
