Starbucks always has something new going on; this time, your favorite coffee place is experiencing another leadership change. This recent change stems from the company’s battle with declining sales.
According to a recent announcement, Laxman Narasimhan, who took charge just a year ago, is stepping down immediately. So now, the company has appointed Brian Niccol, the current CEO of Chipotle, to take over as chairman and CEO starting September 9.
Who Will Become the New Starbucks CEO?
Brian Niccol will become Starbucks’s fourth CEO in the past two years. He has been at the forefront of Chipotle since 2018, where he gained a reputation as a corporate turnaround specialist.
He has done pretty well because Chipotle saw remarkable growth under his leadership, with revenues surging nearly 800%. Starbucks highlighted Niccol’s success in setting new industry benchmarks and driving significant value creation at Chipotle.
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Mellody Hobson, Starbucks’ newly appointed lead independent director, also expressed confidence in Niccol’s ability to lead the company into a new era.
Hobson says, “Brian embodies the culture we value and brings a wealth of experience alongside a proven track record of fostering innovation and growth. Our board believes he will be a transformative force for our company, our employees, and our global customer base.”
Following the announcement, Starbucks’ stock surged nearly 19% at the market’s open, erasing the company’s year-to-date losses. This showed the biggest single-day percentage gain since the company went public in 1992. Contrarily, Chipotle’s stock saw a 9% decline.
Why is Laxman Narasimhan Stepping Down As the CEO of Starbucks?
Laxman Narasimhan’s tenure has been full of significant challenges for the coffee giant. Under his leadership, Starbucks has faced declining sales, with a recent report showing a 3% drop in global sales at stores open for more than a year. This includes a 2% decline in its key North American market.
These struggles under his tenure show the growing dissatisfaction among consumers with the high prices at food chains, restaurants, and stores following years of price increases.
Additionally, they expose underlying issues in Starbucks’ business model, which has shifted from being a traditional sit-down coffee shop to focusing more on drive-thru and mobile takeout services in response to changing customer preferences.
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On the other hand, Brian Niccol took charge as Chipotle CEO in February 2018, helping the company get through a critical recovery after an E. coli outbreak had hospitalized 22 people. His leadership revitalized the brand with notable achievements, including menu expansion, enhancements to digital ordering, and a bolstered rewards program.
Niccol seems to be that guy every brand needs because Chipotle’s stock surged by more than 800% under his guidance. As Niccol departs on August 31, Chipotle announced that Scott Boatwright, the company’s chief operating officer, will step in as interim CEO.
What Is the Most Popular Starbucks Coffee Blend?
Let’s turn our attention to Starbucks’ appeal, which is its menu. Everyone knows that Starbucks is the home of all top-tier beverages, allowing customers to customize their drinks in countless ways.
With over $35 billion in revenue in 2023, the company has cemented its place as the largest coffee chain in the world, thanks in part to its iconic drinks and seasonal favorites.
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However, with the hustle and bustle of a busy store, it might feel daunting to ask for a drink recommendation. One standout option to consider is the Salted Caramel Cream Cold Brew. This is a perfect blend of savory and sweet, featuring smooth cold brew coffee, a hint of caramel, and rich salted cold foam on top.
Personalizing this drink means substituting the caramel syrup with white mocha and toffee nut syrup. You may also need to add a drizzle of mocha sauce or even a shot of Starbucks Blonde espresso for an extra kick.
Another favorite option is the Caffè Verona, which combines dark cocoa and a toasty sweetness in a full-bodied, multi-region blend. The sweet touch of Italian Roast gives this dark coffee a rich, caramelly flavor, making it a favorite among those who enjoy a more bottomless, complex brew.
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