After a little over a year in the job, Laxman Narasimhan is stepping down as CEO of Starbucks. Starting next month, the former PepsiCo CCO will be replaced by Chipotle CEO Brian Niccol. Maybe Narasimhan should buy that Schultz olive oil.
As reported NBC NewsThe move comes as Starbucks hopes to “revitalize flagging sales and reassure outside investors.” Narasimhan’s low tenure has been tumultuous. Former CEO and “chairman emeritus” Howard Schultz has frequently criticized the company under Narasimhan’s leadership, especially as sales have continued to decline. Meanwhile, “activist investors,” groups that have bought huge amounts of the company’s stock to force changes at the company, have also been clamoring for a management shakeup. According to NBC News, the board has been considering firing Narasimhan for several months.
And while the company continues to complain about “sinking service and rising prices,” Starbucks has chosen Niccol. This guy? Under whose leadership did they create this excellent TikTok? Good luck.
Still, Starbucks is excited about the change. “His focus on people and culture, brand, menu innovation, operational excellence, and digital transformation has set up-to-date standards in the industry and led to significant growth and value creation…all while increasing compensation for retail team members, expanding benefits, and strengthening the culture,” they say. Schultz is content about it, too. For now. “His retail excellence and history of delivering extraordinary shareholder value validate the critical human element needed to lead a culture- and values-driven enterprise. I believe he is the leader Starbucks needs at a pivotal time in its history. He has my respect and full support.”
Niccol is set to assume the role on September 9. Until then, Rachel Ruggeri will serve as Starbucks’ CFO.
Goodbye, Laxman, we barely knew you. How do I suppose Niccol will right the ship? By taking a play out of the Chipotle playbook and reducing the portion size. I mean, Starbucks’ size labels are basically meaningless. Who says a venti can’t be 17 ounces? I feel a different kind of “just water from the beans” movie coming on.
