Starbucks has announced that its CEO, Laxman Narasimhan, is stepping down from the coffee company and will be succeeded by Brian Niccol, the current CEO and chairman of Chipotle Mexican Grill.
Narasimhan’s departure is effective immediately, with Niccol set to take over as chairman and CEO on September 9. In the meantime, Starbucks’ chief financial officer, Rachel Ruggeri, will serve as interim CEO.
Starbucks highlighted Niccol’s achievements in focusing on people, culture, brand, menu innovation, operational excellence, and digital transformation at Chipotle, leading to increases in revenue, profits, and stock prices since he took on the role in 2018.
Board chair Mellody Hobson expressed excitement about Niccol joining Starbucks, noting his experience and track record of driving innovation and growth. She emphasized his potential to be a transformative leader for the company and its global customer base.
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Niccol expressed his enthusiasm and gratitude for the opportunity, citing his admiration for Starbucks’ brand, culture, and commitment to human connections worldwide. He looks forward to driving growth and enhancing the Starbucks experience while staying true to the company’s mission and values.
The leadership change follows a challenging quarter for Starbucks, marked by sales declines in the second quarter. Narasimhan had been CEO since March of last year.
Hobson thanked Narasimhan for his contributions and dedication to Starbucks, acknowledging his efforts to improve the business amid difficult circumstances. She wished him the best in his future endeavors.
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