Starbucks has hired Chipotle CEO Brian Niccol to be its new CEO and chair, and that is positive news for the company’s strategy
While investors have quickly given the thumbs up to Starbucks’s choice for a new CEO, loyal latte lovers who may have found their visits to the iconic coffee chain’s stores a bit tepid recently should be cheering for this reason, too: He’s not a banker.
At Chipotle, he has overseen impressive growth. Revenue skyrocketed 800 per cent during his tenure. The company opened more than 270 stores last year and expects to nearly double its current total, to 7,000, in the near future. The Walt Disney Company’s former CEO Bob Chapek cratered the company’s value and reputation by putting bankers in charge of decision making, cutting creative talent and budgets and insulting loyal customers by treating them like numbers rather than family. At one point, Mr. Chapek told investors that members of Disney’s loyalty programs were costing the company too much money.
It was the type of mass customization that propelled Burger King years before when the chain promised you could “have it your way,” a direct slap at rivals such as McDonald’s. That, investors said, has made it increasingly difficult for the company to justify the price of its coffee, sometimes as high as US$6 a cup. In an inflationary environment, even loyalists have balked at those prices.
He has also taken a hard line on putting the customer experience first. Recently, in response to consumer complaints, he called out a number of store managers who were skimping on portion sizes in an effort to save costs. Jeopardizing the customer by nickel-and-diming is not how Mr. Niccol rolls.
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