Brian Niccol No Longer Refries His Beans, He Roasts Them

Chipotle (CMG) CEO Brian Niccol has assumed the position of CEO for the bean brewer Starbucks Corp. (SBUX) replacing Laxman Narasimhan. Known to be a fixer, Niccol had previously been the CEO of Taco Bell until Chipotle called in 2018. Niccol reported to his newfound role in the midst of multiple food poisoning outbreaks that was burdening the burrito business. To help turn things around he instituted a loyalty program, increased marketing efforts and provided benefits to its employees, almost doubling Chipotle’s revenue.

As of late, Starbucks has faced a decline in sales as consumers no longer care to see it as a high end coffee retailer whose high prices customers no longer care to entertain. Niccol will now take on the challenge of managing 38,000 stores as opposed to the 3,500 restaurant chains he had at Chipotle. Additionally, the in-store experience which was once seen as a place to hangout has been tarnished by long wait times and an extreme influx of mobile orders.

Starbucks shares rose 20% on the news while Chipotle’s declined ~8%.