American coffee chain Starbucks has announced changes in its management. CEO Laxman Narasimhan has left his post. His place will be taken by Brian Niccol, who currently runs the Chipotle chain of Mexican restaurants, Kommersant reports.
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Analysts attribute the management change to Starbucks' declining sales, particularly in its two core markets, the US and China. Laxman Narasimhan took over in March 2023 as the company struggled to overcome the challenges posed by the COVID-19 pandemic and widespread lockdowns. However, the lifting of Covid restrictions did not help the company much – in the last quarter, it reported a 3% decline in sales overall, and a 14% decline in China.
Some of Starbucks' investors, including one of its largest shareholders, investment fund Elliott Management, have called for a change in management. The appointment of a new CEO was also supported by Howard Schultz , who founded the Starbucks chain. He currently serves as honorary chairman of the board of Starbucks.
Starbucks net profit down 2% in 9M fiscal year
