Starbucks introduced Tuesday it is going to be changing present CEO Laxman Narasimhan with Chipotle chief Brian Niccol after months of slowing gross sales, in response to stories.
The corporate mentioned Niccol — who has been broadly praised for a turnaround at Chipotle that has boosted the burrito chain’s inventory by greater than 50% over the previous yr — will assume the manager place on Sept. 9, according to The Wall Street Journal.
The sudden change in management follows a 20% inventory drop for Starbucks since Narasimhan took the reins of the corporate a yr and a half in the past, succeeding former CEO Howard Schultz.
Schultz, who constructed the chain into a worldwide behemoth within the Nineteen Nineties, slammed Narasimhan’s administration fashion on LinkedIn in Might.
“Having adopted Brian’s management and transformation journey at Chipotle, I’ve lengthy admired his management affect,” Schultz mentioned of Niccol in an announcement. “His retail excellence and monitor document in delivering extraordinary shareholder worth acknowledges the crucial human component it takes to steer a tradition and values pushed enterprise.
“I imagine he’s the chief Starbucks wants at a pivotal second in its historical past. He has my respect and full help.”
Starbucks has been implementing modifications to its service protocols because it tries to placate activist investor companies Elliott Funding Administration and Starboard.
Narasimhan will probably be stepping down from his CEO and board director positions instantly, the report mentioned.
Mellody Hobson — the corporate’s govt chairwoman since 2021 — will turn into the lead impartial director.
