Starbucks names Brian Niccole as the new CEO

Starbucks declared a statement on Tuesday that Chief Executive Officer Laxman Narasimhan will be replaced by Chipotle Mexican Grill’s head, Brian Niccol. Narasimhan, a veteran who worked in PepsiCo and other top brands had been appointed as Chief Executive Officer in 2022. This change indicates that the coffee chain is under immense pressure from large stake investor Elliot Investment Management and other investors. The investors are pressurizing him to step down from the post to improve the performance and stock price. It is stated as an Immediate effect

The New CEO Aims to Bring Innovation:

Niccol will join the position on September 7 and till then Coffee Chains CFO, Racheal Ruggeri act as interim CEO. Chiptole issued a statement that the board as decided that Chief Operating Officer Scott Boatwright will serve as interim CEO. Starbucks shares are 10% and Chipotle’s stock is 8%. The position change is due to decreased financial situation of Starbucks and there is weaker system of management. The sales of Starbucks have declined so much and thus there is a need for immediate change. There is a reduced sales market in China which troubles the coffee chain and the marketing condition has weakened in the economy. Narasimhan also contributed to the brand supply chain and increased store sales.

Entrepreneurs About Brian Niccole:

Lynne Fox, President of the Workers United Nations gave a declaration about Starbucks:

“ Exciting to work with Starbucks and looking forward to increase the financial status and achieve bargaining agreements in the upcoming year”.

The main reason for the replacement is disappointment among the investors and the methods that are applied to run the store said Neil Saunders, managing director at GlobalData.

Conclusion:

Investors are expecting more improvements from the newly appointed CEO

“Brian is a revolutionary worker who tends to obtain prosperous experience and he also has a good record of work in the past which gives innovation and growth as output”

said Starbucks board Chair Mellody Hobson after the announcement.