ALBAWABA - Starbucks CEO Laxman Narasimhan has officially stepped down after a year in the role, according to the coffee chain on Tuesday, Aug. 13, 2024.
Replacing Narasimhan will be Chipotle's Brian Niccol who will be both the CEO and chairman for Starbucks, according to CNN. It's worth noting that Niccol has been leading the American fast-food chain since 2018.
The famous coffee chain praised Niccol and said that he set "new standards in the industry and driven significant growth and value creation."
Starbucks suffered tremendously under Narasimhan's command with its sales dropping 3 percent globally in stores opened for at least a year, as reported by CNN.
Starbucks CEO Laxman Narasimhan steps down
This could've been due to the ongoing calls for a boycott among pro-Palestine and human rights activists of several fast-food chains including Starbucks. Israel's ongoing aggression on Gaza since Oct. 7, 2023, resulted in the killing and injuring of tens of thousands of Palestinians.
Other fast-food chains like McDonald's, KFC, Burger King, and many more also suffered the same fate of boycotting.
Moreover, Coca-Cola, Pepsi-cola, and many other products are also being boycotted for claims from users that they support the occupation of Israel.
Howard Schultz's beef with Narasimhan
Former Starbucks CEO Howard Schultz testifies about the company's labor and union practices during a Senate Committee on Health, Education, Labor and Pensions hearing on Capitol Hill in Washington, DC, March 29, 2023. (Photo by SAUL LOEB / AFP)
CNN claims that Starbucks' stock dropped due to "Consumer fatigue" which increased prices at food chains, restaurants, and stores.
Another reason was the tension between Narasimhan and the company's previous CEO, Howard Schultz who blasted Narasimhan in a LinkedIn post.
