Starbucks' New CEO Brian Niccol to Hold More Power

Brian Niccol, the incoming CEO of Starbucks Corp., will assume the roles of CEO and chairman on September 9, a departure from the transition model used for his predecessor, Laxman Narasimhan. Narasimhan had spent over five months as CEO-in-training under Howard Schultz and did not take on the chairman position. Niccol, who is leaving his role as CEO of Chipotle Mexican Grill Inc., will immediately have more authority to guide Starbucks' strategy.

Niccol's appointment comes at a challenging time for Starbucks, which is grappling with slumping demand from inflation-affected customers in key markets such as the United States and China. The company is also dealing with ongoing contract negotiations with unionized workers. While Niccol brings extensive experience from his tenure at Chipotle and Yum! Brands Inc., managing a company of Starbucks' size and scope, which operates in over 80 markets and has about 381,000 employees, will be a new challenge.

Analysts and stakeholders have expressed optimism about Niccol's ability to stabilize and turn around businesses, a reputation he earned at Chipotle. However, he will need to address concerns from workers skeptical of how Chipotle responded to a unionization drive during his tenure. Additionally, Niccol's leadership will be tested as Starbucks continues to adapt its business model in response to changing consumer behaviors and economic pressures.