Brian Niccol’s success as Starbucks’ new CEO will be a high-wire act.
Niccol, who will wrap up his tenure as Chipotle’s chief executive in early September, will need to navigate a tricky environment at the coffee giant. Once he assumes the top post, he’ll need to win the support of its powerful ex-CEO Howard Schultz while also satisfying shareholder appetite for robust returns. With previous leaders failing to strike this delicate balance, Niccol’s biggest challenge yet is daunting — but crucial.
Ultimately, Niccol’s decades of experience in the restaurant industry (including consumer goods) could be the tall order Starbucks needs in lieu of a ‘triple shot strategy.’
🌯 ☕ Here’s what some analysts are saying about the C-Suite shake up:
Brian Niccol is “exchanging burritos for cold brews,” Citi analyst Jon Tower said in a research note.
“Niccol’s ability to drive consumer engagement and streamline operations is exactly what Starbucks needs to reignite its brand and recapture market share,” said Steve Taplin, CEO of software development company Sonatafy Technology, in a written statement to Quartz.
“There is an old saying that no man can truly serve two masters, but as the CEO of Starbucks, Brian will have to serve both shareholders and Howard [Schultz],” said Jerry Sheldon, vice president of technology at the market research firm IHL Group, in an email to Quartz.
“Chipotle has outperformed the quick-service restaurant space the past several years, and we’d expect new food and beverage products and advertising campaigns to be a focus early in his tenure at Starbucks,” said R.J. Hottovy, head of analytical research at foot traffic analytics firm Placer.ai, in an email to Quartz.
“Niccol’s task will be to re-energize consumers and build new loyalty to the coffee chain. The landscape has completely changed since Howard Schultz first created the American coffeehouse culture, and the brand can’t rest on its laurels,” said Brian Tierney, CEO of Brian Communications, said in a written statement to Quartz.