Starbucks announced last week that CEO Laxman Narasimhan had stepped down after 17 months in the role, as the company faces declining sales and growing frustration among investors. Taking his place, Chipotle CEO Brian Niccol has been named the new Starbucks chairman and CEO, effective mid september. Under Niccol’s leadership at Chipotle, the company’s revenue nearly doubled, profits soared almost sevenfold, and the stock price shot up by nearly 800 percent.
After the news of the new CEO broke, Starbucks’s shares jumped 24 percent, marking the company’s best day since its IPO. When he became CEO of the fast food chain Chipotle Mexican Grill in 2018, the company was in a deep crisis. After a series of scandals, Niccol initiated a radical change and refocused on the products and fresh content. Starbucks also faces a number of challenges. Among other things, the company is criticized for its working conditions, the products are considered overpriced and the stores have lost their reputation as a cosy coffee house.
