
Starbucks is struggling. So it hired fast food’s Mr. Fix-It
CNN
In 2018, Chipotle was reeling from food safety fears after an E. coli outbreak, restaurants were considered messy, and new menu items like queso weren’t landing with customers.
In 2018, Chipotle was reeling from food safety fears after an E. coli outbreak, restaurants were considered messy, and new menu items like queso weren’t landing with customers. The company turned to Brian Niccol to solve its mountain of problems. Niccol had previously led a turnaround effort at Taco Bell, introducing breakfast at the chain, creative items like Doritos Locos tacos, nacho fries and new “Cantina” restaurants. Niccol then successfully revived Chipotle, leaning on advertising, new menu additions like quesadillas, carne asada and pollo asado, and digital and drive-thru ordering to position the brand as upscale fast food. Chipotle’s revenue has surged more than 800% over the past five years as a result. Last quarter, its sales at stores open at least a year increased 11%, despite tepid growth from competitors like McDonald’s and Wendy’s. So, starting next month, fast food’s fix-it man will work to turn around Starbucks as its new CEO, the company announced on Tuesday. Niccol will be Starbucks’ fourth CEO in two years, taking the helm amid a slump in Starbucks’ business and pressure from employees and investors. Investors cheered the news. Starbucks closed up 25%, while Chipotle fell 8% after people heard about the CEO switch. “It really is a similar story. The comparisons here are pretty spot on between Chipotle in 2018 and Starbucks today,” RJ Hottovy, an analyst at Placer.ai, told CNN.