In a move critics have applauded, Shareholders at Starbucks are poaching their new CEO from his executive position at Chipotle.
So who is this new replacement? And more importantly…
Why is the old chief executive being removed from his position effective immediately?
Ousting The (Former) Starbucks CEO
Starbucks has replaced CEO Laxman Narasimhan…
With Chipotle CEO and chain-restaurant extraordinaire Brian Niccols.
Narasimhan’s departure from his position is effective immediately.
Once the news broke, however…
STARBUCKS STOCK ROSE 24.5%, MAKING IT THEIR BEST STOCK DAY EVER.
This year, the coffee chain has had it rough with sales dropping and struggling in its two largest markets, China and the U.S…
Shareholders were eager for a change of management…
Members of the board stated that they’ve been wanting to replace Narasimhan for MONTHS.Â
Narasimhan started as Starbucks CEO in March 2023, handpicked by the company’s former CEO, Howard Schultz. Before Starbucks, Narasimhan had no restaurant experience…
He worked as chief executive at Reckitt, the company behind Lysol and Mucinex.
While Narasimhan was credited as having fixed issues with Starbucks’s supply chain…
THE COMPANY’S SALES, STOCK, AND STORE TRAFFIC STRUGGLED UNDER HIS TENURE.
Not to mention, the Starbucks app also came under fire as being inefficient and causing slow-downs in stores under Narasimhan.
So why did Starbucks poach Chipotle’s CEO for the position?
It’s because Brian Niccols has come to be known as the problem solver of the chain restaurant industry.
Who IS Brian Niccols?
Since working as CEO of Chipotle…
BRIAN NICCOLS BROUGHT THE COMPANY’S STOCK UP 773%
Some of his accomplishments at Chipotle include guiding the company safely through the pandemic…
And through a controversy regarding foodborne illness.
In a time when consumers are pulling back their restaurant spending…
NICCOLS MANAGED TO HAVE CHIPOTLE’S SALES GO UP WHILE ITS COMPETITORS STRUGGLED.
Arguably his biggest accomplishment is creating extended success for the Chipotle app. Instead of having app orders take up the same assembly line as in-store orders…
Niccols introduced assembly lines just for app orders…
Virtually eliminating any threat of a slowdown in stores.
It’s no wonder Starbucks tapped him as their next CEO…
Even Chipotle is sad to see him go.
ONCE NEWS OF HIS DEPARTURE BROKE, CHIPOTLE STOCK DROPPED 10%
And Starbucks is sparing no expense welcoming him as CEO…
Niccols is being offered a base salary of $1.6 million with the opportunity to earn cash bonuses between $3.6 million to $7.2 million…
And he won’t have to relocate from his California home to Starbucks headquarters in Seattle… instead, he will just be allowed to use the company jet.Â
Talk about a commute.
What’s Next?
In the end, this new CEO might be the breath of fresh air Starbucks needs to come out on top again.
Be Great,
GCTV Staff
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