Brian Niccol, the former CEO of Chipotle Mexican Grill and Taco Bell, was appointed as the new CEO and president of Starbucks, effective September 9, replacing Laxman Narasimhan. Rachel Ruggeri will serve as interim CEO until then.
Niccol's successful tenure at Chipotle is seen as a strategic asset to revamp Starbucks' image and address its challenges. At Chipotle, he orchestrated a turnaround after a food-borne illness crisis. Niccol implemented tech upgrades, grab-and-go ordering options, a rewards program, and digital marketing to help the company grow.
Starbucks faces declining sales, and an identity crisis amidst rising competition.
The announcement led to a significant rise in Starbucks' stock price, while Chipotle's stock fell, reflecting investor optimism about Niccol's ability to lead a turnaround, with the backing of investors like Howard Schultz and activist hedge funds Elliott Management, and Starboard Value.
During Niccol's tenure as Chipotle CEO, the company faced backlash over unfair labor practices, child labor law violations. The closure of a unionizing store in Maine was ruled as illegal union-busting by the NLRB, leading to criticism from labor advocates.
Niccol has an engineering degree from Miami University and an MBA from The University of Chicago. Prior to Chipotle, he served as CEO and Director of Taco Bell (2015-2018), a division of Yum! Brands, and held various executive roles at Pizza Hut and Procter & Gamble.
This article was written in collaboration with Generative AI news company Alchemiq
Sources: Bloomberg, Reuters, Axios, Forbes, El Financiero, Page News, Caixin, Telangana Today, Newsroom Odisha, Newsdirectory3, Informazione, Hindustan Times, Common Dreams, Weekly Voice, Digital News Report, Seattle Times.