Viral Chipotle CEO Takes Over Starbucks: What THAT Head Mod Might Get Us
Pumpkin Spice Latte season may be on the horizon, but that’s not the only buzz-worthy thing brewing at Starbucks this fall. In a surprising move that’s shaking up the business world, Starbucks has announced that Chipotle CEO Brian Niccol will be taking over as the coffee giant’s new CEO. Niccol, known for his savvy leadership and recent social media stardom, is set to officially step into his new role on September 9, 2024. He will be the fourth CEO in just two years for the coffee chain. But why the sudden leadership change? Will Niccol manage to craft the perfect blend of innovation and tradition for the brand’s future? Keep reading for what you need to know about the Starbucks CEO replacement.
What led to the Starbucks CEO replacement?
Laxman Narasimhan, who had only been in the CEO role since March 2023, is stepping down effective immediately. This move follows a series of disappointing fiscal quarters for Starbucks. The coffee giant has been grappling with declining same-store sales in its largest markets. In the U.S., growth slowed to just 2 percent in the latest fiscal quarter.
Additionally, Starbucks has faced pressure from activist investors who have been critical of its recent financial performance. The company’s stock has also underperformed, with Starbucks shares dipping by nearly 10 percent over the past year, causing concerns among shareholders. Even former CEO Howard Schultz, who temporarily returned to the company in 2022, emphasized the need for a strategic overhaul to revitalize Starbucks’ U.S. operations and improve its market position.
Who is the new Starbucks CEO replacement?
Niccol’s record of accomplishment at Chipotle Mexican Grill speaks volumes. He joined the fast-casual chain in 2018 when the company was still reeling from food safety scandals that severely damaged its reputation and sales. Under his leadership, Chipotle’s fortunes soared. Revenues grew by nearly 800 percent and the stock price climbed over 800 percent. Niccol’s focus on menu innovation, digital ordering and rewards programs helped revitalize Chipotle into a major success story in the restaurant industry.
Before Chipotle, Niccol was CEO of Taco Bell from 2015 to 2018. He also has a long history in the fast-food industry, including executive roles at Pizza Hut.
“It's hard to leave such a great company and all of the talented people I’ve had the pleasure to work with, but I depart knowing the business is in great shape and poised for growth with a strong, experienced leadership team,” Niccol said in a statement.
Brian Niccol’s viral moments at Chipotle
Niccol isn’t just known for his business success. He’s also made headlines for his meme-worthy interactions with Chipotle fans on social media. Back in May, TikTok food critic Keith Lee posted a negative review of his Chipotle order, claiming the portion sizes were “crazy low.” The video has over 16.5 million views.
In response, Niccol shared in a TikTok video that Chipotle’s portion sizes have not decreased. However, he claimed that if “you want a little more rice or you want a little more pico, all you got to do is, kinda, like,” and gave a head nod motion. Watch it below:
Viewers quickly made the “head nod” hack a trend on the platform. Other TikTok users even began filming themselves ordering at Chipotle stores and attempting the move on workers to get larger portion sizes.
What the Starbucks CEO replacement means for Starbucks' future
Looking ahead, Niccol’s appointment could signal a new chapter for Starbucks. Since the announcement, Starbucks’ stock grew close to 19 percent, while Chipotle’s went down by 9 percent.
“Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth,” said Mellody Hobson, Starbucks’ Lead Independent Director, in a release. “Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”
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