Starbucks on Tuesday said Laxman Narasimhan is stepping down from his role as CEO and as a member of the Starbucks board with immediate effect. The coffee chain appointed Brian Niccol as chairman and chief executive officer.
During his tenure, Narasimhan improved the Starbucks partner experience, drove significant innovation in our supply chain, and enhanced our store operations, the company said.
Narasimhan, who joined Starbucks as CEO on October 1, 2022, holds a degree in Mechanical Engineering from the College of Engineering, University of Pune. He was among the growing ranks of Indian origin CEOs who are heading big U.S. companies like Satya Nadella of Microsoft, Sundar Pichai of Alphabet, Shantanu Narayen of Adobe, Punit Renjen of Deloitte and Raj Subramaniam of FedEx.
Narasimhan held various leadership roles at PepsiCo, including as global chief commercial officer, where he was responsible for the company’s long-term strategy and digital capabilities. Prior to PepsiCo, Narasimhan was a senior partner at McKinsey & Company, where he focused on its consumer, retail and technology practices in the U.S., Asia and India and led the firm’s thinking on the future of retail.
Starbucks new CEO Niccol will start in his new role on September 9, 2024. Starbucks chief financial officer, Rachel Ruggeri, will serve as interim CEO until that time. Mellody Hobson, Starbucks board chair, will become lead independent director.
“In the face of some challenging headwinds, Laxman has been laser focused on improving the business to meet the needs of our customers and partners,” said Hobson.
Niccol currently serves as chairman and CEO of Chipotle. Since becoming CEO in 2018, Niccol has transformed Chipotle. Revenue has nearly doubled, profits have increased nearly sevenfold, and the stock price has increased by nearly 800% during his leadership, all while increasing wages for retail team members, expanding benefits, and strengthening the culture, the company says in a statement.
“I have long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe. As I embark upon this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values,” says Niccol.
Niccol joined Chipotle as Chief Executive Officer and a director in March 2018, and became Chairman of the Board in March 2020. Before joining Chipotle, he served as Chief Executive of Taco Bell. Before becoming CEO he held roles including Chief Marketing and Innovation Officer, and President. He also served in leadership roles at Pizza Hut, another division of Yum! Brands. He began his career in brand management at Procter and Gamble.
Niccol currently serves on the board of directors of Walmart Inc. He previously served on the board of KB Home and Harley-Davidson. Niccol holds an undergraduate degree from Miami University and an MBA from the University of Chicago Booth School of Business.
