Laxman Narasimhan has stepped down as CEO of Starbucks after a 16-month tenure.  He was selected to succeed Howard Schultz, the entrepreneurial founder of the company who was responsible for early growth and expansion into China. Schultz grew the coffeehouse chain of 20 stores to more than 100 during the four first years of his management and established Starbucks as a world brand with 38,000 stores in 86 nations by 2023.

The Board of Starbucks was disillusioned with their CEO and after consultation with activist investor, Elliot Management, the decision was made to search for a replacement eventually focusing on Brian Niccol who has accepted the position of CEO and will become member of the Board.  An indication of investor confidence in Niccol is indicated by the fact that following the announcement, Starbucks shares soared 20 percent with a corresponding 10 percent decline in the value of Chipotle Mexican Grill.

Starbucks has been troubled by organizational and labor issues including long wait times, waning of the perception of company stores as a place to gather, extreme competition and since COVID consumer reluctance to spend on high-priced gourmet and exotic coffee drinks.  This was reflected in a decline in revenue, pessimistic guidance all contributing to a declining share price, and erosion of image.