Laxman Narasimhan had only been in the role for a year-and-a-half, but had been under growing pressure following a string of disappointing financial results.
Starbucks has suddenly replaced its chief executive after the company suffered a bigger-than-expected drop in sales.
The coffee chain’s board announced on Tuesday that Laxman Narasimhan had departed the firm “effective immediately”.
They said Brian Niccol – the boss of burrito chain Chipotle – would soon take his place.
It comes following mounting pressure and speculation over the future of Mr Narasimhan, who had only been in the role for a year-and-a-half.
Last month, the firm reported that global sales had fallen by 3% during its third quarter – more than forecast by analysts, and the latest in a string of disappointing financial results.
Along with slumps in regions such as the US and the Middle East, sales plunged by 14% in China during the period.
The declines have been blamed on a combination of weaker demand amid price rises and boycotts related to the war in Gaza.
Mr Narasimhan, previously chief executive of multinational consumer goods firm Reckitt, had been under scrutiny over his lack of experience in the restaurant sector.
Despite spending months studying Starbucks’s business – including training as a barista – he came under further pressure in May when his predecessor Howard Schultz published an open letter urging the chain to make improvements.
There has also been pressure from activist investor Elliott Investment Management after it built a $2bn (£1.55bn) stake and demanded changes in the firm.
Mellody Hobson, who has stepped down as chairman to lead the company’s board as part of the shake-up, admitted to CNBC that she had begun pushing to have Mr Narasimhan replaced “a couple of months ago”.
Mr Niccol, who has also held senior positions at major US food brands including Taco Bell and Pizza Hut, will become chief executive on 9 September.
Ms Hobson said she was “thrilled”, adding: “His phenomenal career speaks for itself.”
Source: https://news.sky.com/story/starbucks-suddenly-replaces-ceo-after-sales-drop-13196457
