Starbucks (SBUX.O) announced a key leadership change on Wednesday, promoting Mike Grams, its North America chief coffeehouse officer, to chief operating officer. This move is part of a broader leadership reshuffle aimed at improving the company’s performance.
Since taking over as CEO last year, Brian Niccol has focused on returning Starbucks to its coffeehouse roots. He has pledged a simpler menu, the return of ceramic cups, offering refills and condiment bars, and reducing wait times to under four minutes. Niccol has also scaled back on deals and discounts to expand marketing beyond loyalty program members.
“Our performance isn’t yet where we want it to be,” Niccol said Wednesday. “We’re making additional organizational changes to bring teams closer together, strengthen leadership accountability, and allow teams to move with greater clarity and urgency.”
Starbucks faced challenges in the second quarter, reporting disappointing global sales and profits due to inflation and economic uncertainty affecting costs and reducing U.S. customer demand.
In recent months, Starbucks has also seen key departures and hires. In January, North America president Sara Trilling and chief supply chain officer Arthur Valdez left the company. In March, retail veteran Cathy Smith was hired as the new chief financial officer.
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