Brian Niccol is going from burritos to baristas.
The Chipotle CEO is ending his time at the Mexican grill chain and plans to start as top boss at Starbucks on September 9.
Niccol, 50, replaces Laxman Narasimhan, marking what observers deem a new beginning for the renowned coffee franchise.
Under Narasimhan, Starbucks faced a litany of challenges related to unionization efforts and stunted sales growth across the globe, particularly in China.
By swapping in Niccol, the Starbucks board hopes for a successful turnaround not unlike what he accomplished at Chipotle. From 2018, Niccol helped revitalize the brand after it had been plagued by food safety scandals, resulting in severe damage to its reputation and declining sales.
He also spearheaded a new digital ordering strategy that kept each restaurant busy during the Covid-19 pandemic. With Niccol at the helm, Chipotle stock reportedly enjoyed 800% returns.
Now, Starbucks investors have a reason to be excited. For years, the company struggled to find a leader to fill founder Howard Schultz’s shoes. The mere mention that Niccol was joining the C-suite spiked the coffee company’s market cap up by $27 billion (by contrast, Chipotle’s shares plummeted 25%).
Climate-conscious customers, however, have a different take, questioning Niccol’s highly publicized commute from his home in Southern California to Starbucks headquarters in Seattle. Company brass agreed to fly him over 1,000 miles each way several times a week on a private jet. On the remaining days, Niccol can work from his home in Newport Beach, and is not required to relocate. When the arrangement was announced last month, a flurry of critics complained on social media that Niccol’s commute clashes with Starbucks’ sustainability spiel. Others poked fun at the notion of using more reusable cups and paper straws just to offset the carbon emissions generated by Niccol’s sky-high commute. Recall that Starbucks subordinates were instructed to return to the office at least three times a week back in 2023—no matter how far away they lived.
