Starbucks said Tuesday (Aug. 13) that it has appointed Chipotle Chairman and CEO Brian Niccol as CEO, effective Sept. 9, succeeding Laxman Narasimhan, who stepped down as CEO and director Tuesday.
Niccol will leave Chipotle effective Aug. 31, at which time Chipotle Chief Operating Officer Scott Boatwright will become the restaurant company’s interim CEO, according to a Tuesday press release from Chipotle.
Starbucks Chief Financial Officer Rachel Ruggeri will serve as interim CEO, and its board chair, Mellody Hobson, will become lead independent director, the coffee retailer said in a Tuesday press release.
Announcing these changes, Starbucks highlighted Niccol’s “focus on people and culture, brand, menu innovation, operational excellence and digital transformation.”
Since he become CEO of Chipotle in 2018, that company has nearly doubled its revenue, increased its profits nearly sevenfold, increased its stock price nearly 800%, and improved employees’ wages and benefits, according to the release.
Before joining Chipotle, Niccol served as chief marketing and innovation officer, president and CEO of Taco Bell; held leadership roles at Pizza Hut; and worked in brand management at Procter & Gamble, per the release.
He currently serves on the board of directors of Walmart.
“His phenomenal career speaks for itself,” Hobson said in the release. “Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth.”
Niccol said in the release that he has long admired Starbucks’ brand, culture and “commitment to enhancing human connections.”
“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 said.
Narasimhan served as Starbucks’ CEO and as a member of its board of directors since March 2023, when he succeeded company founder and then-CEO Howard Schultz.
During his time in that role, Narasimhan improved the company’s partner experience, innovated its supply chain and enhanced its store operations, Starbucks said in the Tuesday press release.
“In the face of some challenging headwinds, Laxman has been laser focused on improving the business to meet the needs of our customers and partners,” Hobson said. “We all wish him the very best and know he will do great things in the future.”
This news comes about two weeks after Starbucks reported mixed financial results for its third fiscal quarter ended June 30. The firm’s global comparable store sales dipped 3%, driven by a 5% decrease in transactions despite a 2% rise in average ticket size.
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