In this article, Starbucks announced another stage in its leadership shake-up on Tuesday. CEO Brian Niccol will bring in two more executives who previously worked at Taco Bell, his former employer, while dividing key leadership roles. Niccol stated in a letter to employees on the company’s website that a new operating model is needed for the retail team as part of the “Back to Starbucks” plan, with clear ownership and accountability for each role.
The announcement was made shortly before Starbucks reported fiscal first-quarter earnings and revenue that exceeded analyst expectations. Despite a decline in same-store sales for the fourth consecutive quarter, the results were better than anticipated by Wall Street.
Niccol, who previously served as CEO of Taco Bell and spent six years at Chipotle, has been making changes since joining Starbucks in September. He has recruited former colleagues to assist in transforming the company, such as Tressie Lieberman, who was appointed as Starbucks’ global chief brand officer.
The latest organizational changes at Starbucks involve splitting the role of North American president into two positions. The current North American president, Sara Trilling, will be leaving the company after being with Starbucks since 2002. Meredith Sandland will assume the role of chief store development officer in February, coming from Empower Delivery and having previous experience at Kitchen United and Taco Bell.
Mike Grams will also join Starbucks in February as the North America chief stores officer. With over 30 years at Taco Bell, Grams started as a restaurant general manager and rose to become the chain’s global chief operating officer. Sandland and Grams will work on implementing Niccol’s strategy to return “back to Starbucks,” which includes reducing service times, enhancing store ambiance, and streamlining the menu.
Furthermore, Arthur Valdez, Starbucks’ chief supply officer, is planning to depart the company. He joined in 2023 after seven years at Target. Starbucks has already identified his successor, and Niccol mentioned that the news will be shared in the upcoming weeks.
