Starbucks CEO Laxman Narasimhan steps down, effective immediately, as Chipotle’s Brian Niccol set to take reins in September.
Starbucks Corporation announced Laxman Narasimhan is stepping down from his role as CEO and as a member of the Starbucks board after one year on the job, effective immediately.
The company said in a statement on Aug. 13 that Brian Niccol, the current head of Chipotle Mexican Grill, will take over as chairman and chief executive officer, effective Sept. 9.
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.”
By Chase Smith
