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Starbucks is adding more former Taco Bell executives as part of its ongoing effort to revamp the coffee giant’s business under CEO Brian Niccol.
Niccol, who helped turn around Taco Bell (YUM+0.03%) and Chipotle (CMG+0.71%), is focused on streamlining operations and elevating the in-store experience, all while making Starbucks (SBUX+8.64%) feel more premium.
Two key Taco Bell veterans, Mike Grams and Meredith Sandland, are the latest additions to Starbucks’ leadership teams. Grams, who spent over 30 years at Taco Bell, will serve as executive vice president and chief stores officer. Niccol describes Grams as a “seasoned operator, and people-first leader” who will focus on improving store operations and aligning retail teams with Starbucks’ new vision. Sandland, formerly Taco Bell’s chief development officer, will take on the role of executive vice president and chief store development officer. With her extensive experience in the restaurant industry, Sandland will help Starbucks rethink store layout, design, and the overall customer experience.
These leadership changes are part of Niccol’s “Back to Starbucks” plan, aimed at improving efficiency and allocating resources more effectively. Niccol, who has been at the helm for just four months, is working to reverse a series of sales declines. He has stressed the need to reduce unnecessary layers within Starbucks’ corporate structure, creating a more nimble and accountable operation. To that point, in late Oct. 2024, the company announced that corporate employees would be required to return to the office three days a week or quit.
As part of his strategy, Niccol has focused on improving the in-store experience. On Jan. 27, Starbucks reintroduced elements associated with the “classic coffeehouse vibe,” including condiment bars, handwritten names on cups, and personalized service. Additionally, Starbucks has promised to speed up service, with a target of brewing fresh coffee in under four minutes, all while keeping prices steady through fiscal 2025.
The changes don’t stop there. Starbucks is also paring down its menu, tripling parental leave for its U.S. baristas, removing the up-charge for non-dairy milk alternatives, limiting bathroom access to paying customers only, and launching regular TV ads.
With these changes, Niccol is betting that a mix of speed and premium service will keep Starbucks competitive in an evolving market. The company is set to report its first-quarter earnings after markets close on Tuesday, Jan. 28.
Wall Street is cautiously optimistic. Analysts from Bank of America (BAC-0.22%), Citi (C+0.96%), and William Blair have factored in potential sales declines but see a possible recovery in the future. However, they agree that the recovery will take time.
In China, the chain’s second- largest market, Niccol appointed Tony Yang as the company’s first chief growth officer in mid-December. Yang, a former product development executive in the auto industry, will focus on partnerships with celebrities and entertainment brands to expand Starbucks’ presence in the region.