Starbucks taps Chipotle’s CEO Brian Niccol to replace ousted CEO Laxman Narasimhan
Brian Niccol, incoming CEO, Starbucks. Image: Starbucks
Starbucks today announced that Brian Niccol has been appointed chairman and CEO. Niccol will start in his new role on 9 September 2024. Starbucks chief financial officer, Rachel Ruggeri, will serve as interim CEO until that time. Mellody Hobson, Starbucks board chair, will become lead independent director.
Niccol replaces Laxman Narasimhan who is stepping down as CEO and as a director effective immediately. Narasimhan assumed the position of CEO of Starbucks in March 2023, succeeding founder and former CEO and chairman emeritus, Howard Schultz. During his tenure, the company noted that he improved the Starbucks partner experience, drove significant innovation in its supply chain, and enhanced store operations. However, the company has faced significant challenges this year, including declining sales in key markets such as the US and China. Furthermore, the Wall Street Journal reported that Seattle, Washington-based Starbucks is under increasing pressure from activist investors as it also grapples with a sagging share price.
Following the announcement of Niccol as the incoming CEO, shares of Starbucks Corporation (SBUX) jumped 12.8% in premarket action — its highest level since late April, per Seeking Alpha.
Niccol currently serves as chairman and CEO of Chipotle. Since becoming CEO in 2018, Niccol has transformed Chipotle. His focus on people and culture, brand, menu innovation, operational excellence, and digital transformation have set new standards in the industry and driven significant growth and value creation. Revenue has nearly doubled, profits have increased nearly sevenfold, and the stock price has increased by nearly 800% during his leadership, all while increasing wages for retail team members, expanding benefits, and strengthening the culture.
“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,” said Hobson. “Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”
“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. 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.”
Niccol joined Chipotle as CEO and a director in March 2018, and became chairman of the board in March 2020. Before joining Chipotle, he served as CEO of Taco Bell. Before becoming CEO there, he held roles including chief marketing and innovation officer, and president. He also served in leadership roles at Pizza Hut, another division of Yum! Brands. He began his career in brand management at Procter & Gamble.
Niccol currently serves on the board of directors of Walmart Inc. He previously served on the board of KB Home and Harley-Davidson. Niccol holds an undergraduate degree from Miami University and an MBA from the University of Chicago Booth School of Business.
“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,” said Schultz. “I thank Mellody and the Starbucks board for their deep commitment to shaping the future of this remarkable global phenomenon that is Starbucks.”
Ruggeri is a 23-year Starbucks partner and has been CFO since 2021.
