Starbucks CEO Laxman Narasimhan steps down, effective immediately, as Chipotle’s Brian Niccol set to take reins in September.
Rachel Ruggeri, currently Starbucks’ chief financial officer, will serve as interim CEO until Niccol assumes his new role, Starbucks said.
Niccol has served as chairman and CEO of the Mexican food chain since 2018. During his tenure at Chipotle, Niccol was credited with transforming the company through a focus on culture, brand innovation, and digital transformation, resulting in significant growth and value creation, Starbucks said in its announcement.
Under his leadership, Chipotle’s revenue nearly doubled, profits increased sevenfold, and the stock price rose by approximately 800 percent, Starbucks said in the statement.
Mellody Hobson, who will become the lead independent director of Starbucks, expressed enthusiasm for Niccol’s appointment, stating, “We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself. Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth. Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience.”
Niccol also conveyed his excitement about joining Starbucks, saying, “I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners. I have long-admired Starbucks’ iconic brand, unique culture, and commitment to enhancing human connections around the globe.”
Hobson thanked Narasimhan for his contributions, noting, “In the face of some challenging headwinds, Laxman has been laser-focused on improving the business to meet the needs of our customers and partners.”
Niccol’s career before Chipotle includes roles at Taco Bell, Pizza Hut, and Procter & Gamble. He currently serves on the board of directors of Walmart Inc. and holds degrees from Miami University and the University of Chicago Booth School of Business.
Howard Schultz, Starbucks founder and chairman emeritus, expressed support for Niccol. Schultz stepped down as head of the company he founded last year when Narasimhan took over.
“His retail excellence and track record in delivering extraordinary shareholder value recognize the critical human element it takes to lead a culture and values-driven enterprise,” Schultz said in the release. “I believe he is the leader Starbucks needs at a pivotal moment in its history.”
Ruggeri is a 23-year veteran at Starbucks and will lead the company in the interim period. Starbucks said in the release that her experience and long history with the company will ensure a smooth transition.