New Leadership Brews Change at Starbucks
A Fresh Perspective
Starbucks is undergoing a significant transformation under the guidance of CEO Brian Niccol, who is drawing inspiration from his experience at Taco Bell. The coffee giant has appointed two seasoned executives, Mike Grams and Meredith Sandland, to key roles in its retail team. Grams, formerly of Taco Bell, will serve as chief stores officer, while Sandland, who previously led delivery meal company Empower Delivery, will take on the role of chief store development officer.
Streamlining Operations
Both Grams and Sandland will relocate to Seattle and begin their new roles in February, playing a crucial part in Niccol’s “Back to Starbucks” plan. This new operating model aims to bring clarity and accountability to the retail team, with each role having a defined scope. Grams will oversee retail teams and store performance, while Sandland will focus on store development strategy and design, ultimately delivering the community coffeehouses that customers and partners expect.
Changes at the Top
As part of this restructuring, Sara Trilling, president of Starbucks North America, will be leaving the company. Trilling oversaw growth plans and the rollout of the Siren retail system, as well as supporting employees across the US and Canada. Niccol plans to split her role into two new positions, which Trilling believes are not the right fit for her. Arthur Valdez, chief supply and customer solutions officer, will also be stepping down, with a successor to be announced in the coming weeks.
A New Era
Niccol acknowledges that these changes may be overwhelming, but he is confident that they are necessary for the company’s growth. As Starbucks prepares to post its first quarter fiscal year 2025 results, analysts expect revenue to reach $9.32 billion, with same-store sales and foot traffic projected to decline. However, with Niccol at the helm, the company is poised for a turnaround, having already seen a 32% rise in shares over the past six months.
What’s Next?
As Starbucks embarks on this new chapter, investors will be watching closely to see how these changes impact the company’s performance. With a focus on clear ownership and accountability, the coffee giant is brewing up a fresh approach to retail, one that prioritizes community coffeehouses and customer experience.
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