Brian Niccol has become the new CEO of Starbucks: shares are rising, Chipotle is falling
19 august 2024 в 23:13
Brian Niccol, CEO of Chipotle, replaced former Starbucks CEO Laxman Narasimhan. According to The Wall Street Journal and Fortune, the coffee chain will pay the new boss $ 113 million, and he will be able to work from home. As a result of the change in CEO, Starbucks shares rose, while Chipotle shares fell.
Since Narasimhan’s departure takes effect immediately, Starbucks' acting CFO Rachel Ruggeri will become the interim CEO until Niccol officially starts on September 9.
Despite being one of the most successful coffee companies in the world, Starbucks faced financial difficulties this year. According to CNBC, sales in same-store locations decreased in its largest markets — the US and China.
Narasimhan took over as CEO in March 2023, succeeding former Starbucks boss Howard Schultz. Schultz then chose Narasimhan as his successor.
Earlier this year, Schultz wrote an open letter on LinkedIn about the company’s financial situation. Although he did not mention Narasimhan by name, he gave some advice, noting that «senior leaders — including board members — should spend more time with those who wear the green apron», - referring to baristas in each store.
«One of their first steps should be to review the mobile ordering and payment platform — which Starbucks developed — to make it an inspiring experience again, as it was intended to be», - Schultz wrote in May. «The market entry strategy should be reviewed and improved with coffee-based innovations that inspire partners and create market differentiation, strengthening the company’s premium position. Despite all this, the focus should be on the experience, not the transaction».
Stating that he is «no longer» on the «Starbucks board of directors» and has had «no official role in the company since April 2023», - Schultz emphasized that his «love for the company and everyone who wears the 'fabric of the company' - the famous green apron — knows no bounds».
«And I too have experienced several quarters of financial disappointments in my four decades leading Starbucks», - he continued. «Ask any CEO of a public company, and they will tell you that 'missing the mark' is almost inevitable, even in the best-managed, fast-growing firms».
In closing his letter, Schultz clarified that he is «confident» that Starbucks will «recover» after the financial downturn, noting that he «created an industry that did not exist».
«The brand is one of the most recognizable and respected in the world», - he added. «I am confident that the business in China will return to health and become the company’s largest market. The brand is incredibly resilient, but clearly not everything is going according to plan»
Since Narasimhan’s departure takes effect immediately, Starbucks' acting CFO Rachel Ruggeri will become the interim CEO until Niccol officially starts on September 9.
Despite being one of the most successful coffee companies in the world, Starbucks faced financial difficulties this year. According to CNBC, sales in same-store locations decreased in its largest markets — the US and China.
Narasimhan took over as CEO in March 2023, succeeding former Starbucks boss Howard Schultz. Schultz then chose Narasimhan as his successor.
Earlier this year, Schultz wrote an open letter on LinkedIn about the company’s financial situation. Although he did not mention Narasimhan by name, he gave some advice, noting that «senior leaders — including board members — should spend more time with those who wear the green apron», - referring to baristas in each store.
«One of their first steps should be to review the mobile ordering and payment platform — which Starbucks developed — to make it an inspiring experience again, as it was intended to be», - Schultz wrote in May. «The market entry strategy should be reviewed and improved with coffee-based innovations that inspire partners and create market differentiation, strengthening the company’s premium position. Despite all this, the focus should be on the experience, not the transaction».
Stating that he is «no longer» on the «Starbucks board of directors» and has had «no official role in the company since April 2023», - Schultz emphasized that his «love for the company and everyone who wears the 'fabric of the company' - the famous green apron — knows no bounds».
«And I too have experienced several quarters of financial disappointments in my four decades leading Starbucks», - he continued. «Ask any CEO of a public company, and they will tell you that 'missing the mark' is almost inevitable, even in the best-managed, fast-growing firms».
In closing his letter, Schultz clarified that he is «confident» that Starbucks will «recover» after the financial downturn, noting that he «created an industry that did not exist».
«The brand is one of the most recognizable and respected in the world», - he added. «I am confident that the business in China will return to health and become the company’s largest market. The brand is incredibly resilient, but clearly not everything is going according to plan»
© Kolganov Andrey
