Brian Niccol, CEO of Chipotle, is set to take over the CEO position of Starbucks in September. He is replacing former CEO Laxman Narasimhan, who took the position of CEO last March, after Starbucks decided to end his employment.
Niccol is also going to become board chairman of the coffee company. After the announcement of the change in leadership, stock in Starbucks increased by 21 percent. This is a big contrast to Narasimhan’s control, during which shares fell over 20 percent. This fall in shares was coupled with falling sales in two of the company’s biggest markets: America and China. This was assumed by Starbucks fans to be due to Narasimhan’s lack of knowledge of the restaurant business.
Starbucks board members are hoping for a continuation of growth and improvement of the company after Niccol’s takeover. They believe that the success of Chipotle and the knowledge of the industry that Niccol possesses will keep the company on the up.
