It all sounds kind of sudden, but Starbucks today announced that Laxman Narasimhan is immediately stepping down as CEO and a member of the board of directors. CFO Rachel Ruggeri, will serve as interim CEO until Sept. 9, when Brian Niccol arrives as chairman and CEO. Mellody Hobson, current board chair, will then become lead independent director.
Niccol currently is chairman and CEO of restaurant chain Chipotle. “Since becoming CEO in 2018, Niccol has transformed Chipotle,” Starbucks’ announcement said. “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.
“[Chipotle] revenue has nearly doubled, profits have increased nearly sevenfold, and the stock price has increased by nearly 800% during his leadership, all while increasing wages for retail team members, expanding benefits and strengthening the culture.”
Before Chipotle, Niccol held several executive roles at Taco Bell, eventually becoming CEO. He also served in leadership roles at Pizza Hut, another division of Yum! Brands. He began his career in brand management at Procter and Gamble.
Laxman has been the coffee chain’s CEO just 17 months, during which time Starbucks has endured falling sales, union clashes and activist investors.
