The CEO of Starbucks is leaving the company after less than two years as the coffee chain tries to improve its falling sales. Laxman Narasimhan, who had been leading Starbucks, is stepping down and will be replaced by Brian Niccol, the head of Chipotle, a popular Mexican food chain. This leadership change comes as Starbucks faces a drop in sales due to price hikes and boycotts related to the Israel-Gaza conflict.
Former Starbucks executive Howard Schultz praised Mr. Niccol, saying he is the right leader for this challenging time in the company’s history. After the announcement, Starbucks shares rose by more than 20%.
The company has been struggling with longer wait times for drinks and higher prices, which have led to customer dissatisfaction. In recent months, Starbucks also reported a 3% drop in global sales, particularly in the US and China.
Additionally, the company has faced pressure from activist investors who are demanding changes in leadership and operations.
Brian Niccol has a strong track record, having successfully led Chipotle through a crisis and significantly growing its sales.
However, analysts suggest that Starbucks may pose a more difficult challenge due to its larger size and more complex issues, including boycotts and customer concerns about pricing.
Starbucks has also been caught in a controversy related to its stance on the Israel-Gaza conflict, leading to global boycott calls.
The company has denied taking sides and issued a statement condemning violence, but misinformation about its position has added to its challenges.
This summary is based on information provided by the BBC.
https://www.bbc.com/news/articles/cy0npj1n6rko