Tuesday saw beleaguered global coffee giant Starbucks announce, in a shock move, that Brian Niccol would join as chairman and CEO, replacing Laxman Narasimhan, who steps down from his current tenure in the role.
Currently CEO at Chipotle, Niccol will officially join the ranks on September 9, said Starbucks. Between now and then, added the company, Starbucks' CFO, Rachel Ruggeri, will act as interim CEO.
Chipotle chief since 2018, Niccol becomes Starbucks' fourth CEO in the span of two years, when the company has undergone dramatic changes, according to CNN.
Under Niccol's leadership, Chipotle has experienced tremendous growth and change. His cultural focus, brand building, menu innovation, operational efficiencies, and digital enhancements have been the drivers of success for the firm. Revenues almost doubled, profits surged nearly sevenfold, and the stock price rose almost 800 percent during his tenure.
"We are pleased to welcome Brian to Starbucks. His accomplished career is a reflection of his ability to drive innovation and growth. He realizes that a great customer experience is predicated upon an exceptional partner experience," said Mellody Hobson, the new lead independent director of Starbucks.
Niccol said he was excited to take on the new role and added, "I am very excited to join Starbucks and look forward to working with our dedicated partners to continue advancing this great company."
Narasimhan, 57, will also resign as CEO and from the board of Starbucks with immediate effect.
During his time at Starbucks, Narasimhan has been focused on changing the partner experience, innovating the supply chain, and driving operational efficiencies in stores. The business has suffered from slowing growth, most recently a 3 percent decline in global sales at stores open at least a year and a 2 percent drop in North America, CNN reported.
Hobson extended her gratitude toward Narasimhan and said, "On behalf of the board, I want to sincerely thank Laxman for his contributions to Starbucks and his commitment to our people and brand.".
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