Brian Niccol’s performance at the head of Chipotle has impressed Starbucks founder Howard Schultz. From next month on, he can test if his recipe for success works just as well with coffee.
Disappointing results
Niccol makes the switch from burrito to frappuccino, leaving Tex-mex chain Chipotle on 9 September to become the new CEO and chairman of coffee chain Starbucks. His predecessor there, Laxman Narasimhan, lasted only a year and a half due to disappointing results and a disagreement with Schultz. Starbucks sales have been decreasing for some time in the United States and China – but they just happen to be its two main markets.
The coffee chain is now hoping that Niccol can repeat his Chipotle success of the recent years: since he took office in 2018, its share price went up 773 %, CNBC reports. Moreover, he guided the chain through the pandemic unscathed and recently managed to increase traffic and sales at its restaurants during a period of declining consumer spending and general unease in the hospitality industry. One of Chipotle’s assets is its high-performance app, while a malfunctioning app is one of the things Starbucks is struggling with.
