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Starbucks (SBUX) is set to welcome a new CEO. Brian Niccol, a powerhouse in the restaurant industry, is expected to take over next month, bidding farewell to his transformative tenure at Chipotle (CMG).
Niccol is joining Starbucks SBUX+2.61% at a very interesting time, one in which sales are shaky, shareholders aren’t too happy, and even its former CEO, Howard Schultz, is urging the company to act.
But even so, Niccol is perhaps the best pick Starbucks could’ve opted for because of Niccol’s strong focus on culture, innovation, and digital technology. Those key strategies helped revitalize and boost sales at both Taco Bell (YUM) and Chipotle CMG-2.29%.
Under his leadership at Taco Bell, Niccol played a major role in revamping the chain’s image. During his tenure as CEO at the Tex Mex chain he introduced popular new menu items like the Doritos Locos Tacos and the breakfast menu. Notably, the Doritos Locos Tacos are one of the most successful items the chain sells today. He’s also held other executive key roles at Pizza Hut, another Yum! Brands YUM-0.11%-owned company. Before that, he spent a decade at consumer goods giant Procter & Gamble.
At Chipotle, Niccol orchestated a bold turnaround with a revamped menu and modernized digital ordering. He rejuvenated the burrito maker’s brand, streamlined operations, and enhanced company culture. Not to mention, those efforts have seriously held up. The chain has posted consecutively strong quarters. Niccol’s leadership not only resolved past controversies, but also set the stage for a surge in growth.
And now he turns to Starbucks. The recent C-Suite shakeup could benefit the coffee giant in the long run, especially given its position as one of the largest restaurant chains in the world. Its current CEO, Laxman Narasimhan, has already resigned.
In the meantime, Niccol is gearing up for one of the biggest challenges of his career. He must not only win over Howard Schultz, the company’s former chief, but also meet the demands of shareholders, who expect strong returns.
“There is an old saying that no man can truly serve two masters,” Jerry Sheldon, vice president of technology at the market research firm IHL Group, said. But in Niccol’s case, with Schultz’s legacy looming large and shareholders expecting big returns, Niccol must navigate a high stakes landscape while steering Starbucks through evolving market challenges and internal pressures.
Separately, Niccol currently sits on the boards of Walmart WMT+0.77% and Chipotle Cultivate Foundation, the chain’s nonprofit organization.