Starbucks Coffee Company has announced Laxman Narasimhan is stepping down from his role as CEO and as a member of the Starbucks board with immediate effect
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Photo credit: Henry Co
In a strategic move to revitalise its business, Starbucks Coffee Company has named Brian Niccol, the current Chairman and CEO of Chipotle Mexican Grill, as its new Chief Executive Officer. Niccol will take over the reins from Laxman Narasimhan, who stepped down with
immediate effect. Niccol is set to start his new role on 9 September 2024.
Rachel Ruggeri, Starbucks' Chief Financial Officer since 2021, will serve as interim CEO until Niccol's arrival. Additionally, Mellody Hobson, the chair of the Starbucks board, will become the lead independent director.
Niccol, who has led Chipotle since 2018, is recognised for transforming the burrito chain with innovative strategies that doubled its revenue and increased profits by nearly 800%.
“We are thrilled to welcome Brian to Starbucks,” said Hobson.
“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. Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world”
Howard Schultz, Starbucks' founder, also expressed confidence in Niccol's appointment, highlighting his admiration for Niccol’s leadership and impact at Chipotle. Schultz believes Niccol is the right leader to steer Starbucks through its current challenges, including
declining sales and a drop in stock value.
“I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners,” said Niccol.
“I have long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe.”
The leadership change comes at a critical time for Starbucks. In
July 2024, the coffee giant reported slower third quarter sales growth amid price sensitivity in its flagship US market and saw revenues, transactions and average tickets fall in China, where competition and a ‘mass segment price war’ continue to negatively impact store performance.