In 2018, when Chipotle was reeling from multiple food poisoning outbreaks that had sickened 1,100 people, the company called Taco Bell CEO Brian Niccol to turn things around.
As Chipotle’s Chairman and CEO, Niccol beefed up the company’s marketing and product innovation, added a loyalty program and improved store operations. He also instituted employee benefits, like a program that pays employees’ college tuition costs at certain schools.
On Tuesday, Niccol answered another call, this time from Starbucks.
The Seattle coffee giant named Niccol as its new chairman and CEO, hoping he can revive fading sales and re-establish Starbucks as a destination where customers are willing to pay premium prices.
“I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners,” Niccol said.
However, Niccol faces far larger and deeper challenges at Starbucks, which has 38,000 stores worldwide compared with Chipotle’s largely U.S.-based chain of 3,500 restaurants. Niccol has to figure out how to get inflation-weary U.S. customers back into stores for its pricey drinks.
“I will pay $9 for a burrito.
I’m not sure I’m going to pay $9 for a cup of Venti shaken espresso,” said Nancy Tengler, CEO of Laffer Tengler Investments, which owns shares in Starbucks and Chipotle.
