Starbucks, struggling with weak demand and disgruntled investors, announced Tuesday that its chairman and CEO Laxman Narasimhan was stepping down after just over a year in the role.
The Seattle coffee giant announced that Brian Niccol, chairman and CEO of Chipotle, will lead Starbucks starting September 9.
Mr. Narasimhan, a longtime PepsiCo executive who also served as CEO of Reckitt, a U.K. health care company, became Starbucks’ chairman and CEO in March 2023.
PHOTO STEPHEN BRASHEAR, ASSOCIATED PRESS ARCHIVES
Laxman Narasimhan
He succeeded Howard Schultz, Starbucks’ longtime executive and chairman emeritus who came out of retirement in 2022 to serve as the company’s interim CEO.
But investors quickly turned against Mr. Narasimhan as the company’s sales weakened and it faced multiple problems, including lower-cost competitors in China and boycotts in the Middle East and elsewhere over its perceived support for Israel.
Starbucks Chairman Mellody Hobson said Niccol has transformed Chipotle since becoming CEO in 2018 by focusing on menu innovation, operational excellence and digital transformation.
“Brian is a culture leader who brings a wealth of experience and a proven track record of innovation and growth,” Mr.me Hobson in a statement.
“Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience.”
Mr. Schultz said he had long admired Mr. Niccol.
“I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my full respect and support,” Schultz said in a statement.