Starbucks said its CEO Laxman Narasimhan is out at the coffee company and will be replaced by Chipotle Mexican Grill CEO and chairman Brian Niccol.
Narasimhan's exit is effective immediately. Niccol will begin as chairman and CEO on Sept. 9.
Starbucks chief financial officer Rachel Ruggeri will serve as interim CEO until Niccol assumes his role.
Starbucks touted Niccol for “his focus on people and culture, brand, menu innovation, operational excellence, and digital transformation,” and for increases in revenue, profits and stock prices he’s brought to Chipotle since becoming CEO in 2018.
“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,” Starbucks board chair Mellody Hobson, who will now become lead independent director, said in a press release.
“Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world," she said.
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Niccol said he was excited and grateful for the opportunity.
“I have long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe,” Niccol said in a press release. “As I embark upon this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values.”
The change comes after what Ruggeri called a “difficult quarter” amid sales declines in the second quarter.
Narasimhan has been CEO since last March.
“On behalf of the board, I want to sincerely thank Laxman for his contributions to Starbucks, and his dedication to our people and brand,” Hobson said. “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. We all wish him the very best and know he will do great things in the future.”
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