Starbucks Names Chipotle’s Brian Niccol as New C.E.O.

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The coffee chain said that Chipotle’s Brian Niccol would replace Laxman Narasimhan, who is leaving the company after just over a year at the helm.

A man seated looking into the distance wearing a green jacket and purple shirt.
Brian Niccol has held the top position at Chipotle since 2018. Credit...Benjamin Rasmussen for The New York Times

Danielle Kaye

Aug. 13, 2024Updated 9:01 a.m. ET

The chief executive of Chipotle Mexican Grill is moving over to Starbucks, the coffee chain announced on Tuesday.

Brian Niccol, who has held the top position at Chipotle since 2018, will take the helm of Starbucks next month, the company said. He will replace Laxman Narasimhan, whose relatively brief tenure began in March last year, when he became the first chief executive to come from outside the company.

Mr. Niccol’s career also includes a stint as chief executive of Taco Bell.

The sudden change in management comes as the coffee chain grapples with weak results in the United States and China, and amid pushback from activist investors who are looking for a shake-up to address slowing sales. The company has also faced mounting pressure from union officials and activists who argue it illegally retaliated against workers and resisted contract negotiations, in the midst of a nationwide union campaign.

Mr. Narasimhan will step down as chief executive and board director immediately, with the chief financial officer Rachel Ruggeri stepping in as interim chief executive until Sept. 9.

“I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners,” Mr. Niccol said in a statement.

Shares of Starbucks rose more than 14 percent in premarket trading. Chipotle’s stock fell 8 percent.

Workers United, part of the Service Employees International Union, represents workers at more than 400 of Starbucks’ roughly 10,000 company-owned stores in the United States.

Under former chief executive Howard Schultz — who characterized union organizers as outside forces and urged employees not to be “distracted” by them — the company largely resisted engaging with the union. By contrast, Mr. Narasimhan appeared to take a more pragmatic approach. The company began bargaining a framework for a labor contract with union stores earlier this year and has said that it hopes to wrap up the bargaining process with individual stores by the end of the year.

Noam Scheiber contributed reporting.

Danielle Kaye is a business reporter and a 2024 David Carr Fellow, a program for journalists early in their careers. More about Danielle Kaye