After just over a year at the helm, Laxman Narasimhan is out as the CEO of Starbucks. Starting next month, the former Chief Commercial Officer of PepsiCo will be replaced by the Chipotle CEO Brian Niccol. Maybe Narasimhan should have bought that Schultz-brand olive oil after all.
As reported by NBC News, the move comes as Starbucks hopes to “revive flagging sales and appease outside investors.” Narasimhan’s short-lived tenure was tumultuous. Former CEO and “chairman emeritus” Howard Schultz was frequently critical of the company under Narasimhan’s leadership, especially as sales continued to drop. Meanwhile, “activist investor,” groups who purchased large amounts of company stock to force changes at the company, have also been clamoring for a shakeup at the executive level. Per NBC News, the board has been considering letting go of Narasimhan for several months.
And while the company faces continued customer complaints about “declining service quality and rising prices,” Starbucks tapped Niccol. That guy? Under who’s leadership this excellent TikTok takedown was created? Good luck with that.
Even still, Starbucks is excited for the change. “His focus on people and culture, brand, menu innovation, operational excellence, and digital transformation have set new standards in the industry and driven significant growth and value creation… all while increasing wages for retail team members, expanding benefits, and strengthening the culture,” they state. Schultz is happy about it, too. For now. “His retail excellence and track record in delivering extraordinary shareholder value recognizes the critical human element it takes to lead a culture and values driven enterprise. I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support.”
Niccol is scheduled to take over starting September 9th, with Starbucks CFO Rachel Ruggeri filling in until then.
Fare thee well, Laxman, we hardly knew ye. My guess on how the Niccol is going to right the ship? By taking a play out of the Chipotle playbook and decreasing portion sizes. I mean, Starbucks’s sizing designations are basically meaningless anyway. Who says a venti can’t be 17oz? I feel a different kind of “just the bean water” video incoming.
Zac Cadwalader is the managing editor at Sprudge Media Network and a staff writer based in Dallas. Read more Zac Cadwalader on Sprudge.
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Zac Cadwalader
August 13, 2024
