Starbucks appoints former Pizza Hut CMO as CEO amid sales slip

Starbucks has sacked its CEO Laxman Narasimhan and replaced him with Chipotle’s CEO Brian Niccol after recent lacklustre financial results.  

While Niccol has spent the last decade in chief executive roles at Taco Bell and Chipotle, he is a marketer by trade. His early career was spent in brand management roles at Procter & Gamble, before taking on positions across Yum! Brands’ portfolio, including as CMO of Pizza Hut and chief marketing and innovation officer at Taco Bell.  

Announcing his new role, Starbucks emphasised Niccol’s experience in people and culture, brand, menu innovation, operation excellence and digital transformation at Chipotle.  

Starbucks eliminates global CMO role

He joins Starbucks with a proven track record of growing brands. During his six-year tenure at Chipotle, revenue almost doubled, profits increased “nearly sevenfold” and the chain’s stock price rose by almost 800%.  

“His phenomenal career speaks for itself,” says Mellody Hobson, chair of Starbucks’ board. “Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth. Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience.”

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The board believes Niccoll will be a “transformative leader” for the business.  

Starbucks’ most recent financial results were troubling. In the third quarter, revenue dropped 4%, following a 3% fall in the second quarter. This is a sharp decline for a brand that saw its full-year revenue rise 11.5% in 2023.  

As the results were announced on 30 July, Narasimhan said the company’s three-part action plan was “beginning to work and driving operational improvements” expected to improve financial performance.  

“Our growing culture of focused innovation and relentless execution continues to enhance our capabilities, while helping return the business to sustainable growth,” he added. 

In March, Starbucks eliminated its global CMO role by appointing CMO Brady Brewer to CEO of its international business. Instead of replacing the top marketing job, the business appointed regional CEOs to be supported by localised marketing support. This was part of the company’s ‘Tripe Shot with Two Pumps Reinvention plan’ to grow worldwide, with new locations beyond the US.  

“To further accelerate progress, consistent with our ambitions, we are realigning the organisation to balance clear geographical focus with investing in functional capabilities to scale around the world, generating productivity and reinvigorating our partner culture,” said Narasimhan at the time.  

There have also been outside pressures for Starbucks to contend with. The coffee chain faced calls for a boycott last year after suing its workers’ union over a social post expressing “solidarity” with the Palestinians.

The business responded condemning “violence against the innocent”, adding that despite “false statements spread through social media” Starbucks had “never contributed to any government or military operation”.