A longtime Starbucks (SBUX) executive is retiring as CEO Brian Niccol tries to turn around the flagging coffee chain.
On Monday, Starbucks North America CEO Michael Conway, 58, announced plans to retire.
He will stay on with the company as an executive advisor through the end of November.
The company says the decision was made prior to the CEO transition.
Niccol officially took the helm one week ago after former CEO Laxman Narasimhan stepped down and CFO Rachel Ruggeri served as interim CEO.
Conway was just named into the newly created position in April, when Narasimhan’s team eliminated the role of global chief marketing officer.
Upon Conway’s retirement, the company will eliminate the North America CEO role and create a chief brand officer position, which it’s actively recruiting for.
Sara Trilling, who serves as Starbucks’ North America President, will stay in her current job and report directly to Niccol.
Niccol, the former CEO at Chipotle (CMG), recently wrote an open letter to employees and customers that admitted the coffee giant is “beloved” but has “drifted” from its core.
He has held numerous roles, including at Starbucks Canada, Starbucks licensed stores business for the US and Latin America, and Starbucks global channel development.
In an effort to turn around the struggling coffee chain, CEO Brian Niccol of Starbucks (SBUX) is retiring a longstanding executive.
On Monday, Starbucks North America CEO Michael Conway, 58, announced plans to retire. As an executive advisor, he will continue to work for the company until the end of November.
According to Conway, who made this statement to Yahoo Finance, he “could not think of a better time to begin my transition towards retirement” and is encouraged by “the energy and enthusiasm for Brian’s early vision.”. ****.
Prior to the change in CEOs, the company claims the decision was made. Since former CEO Laxman Narasimhan resigned and CFO Rachel Ruggeri filled in as acting CEO, Niccol has been in charge formally for a week. After Narasimhan’s team eliminated the position of global chief marketing officer in April, Conway was just named to the newly created role.
The company plans to eliminate Conway’s CEO position in North America upon his retirement and replace it with a chief brand officer role, for which applications are now being accepted. The position will be in charge of creative, digital and customer insights, product, marketing, and store concepts.
As President of Starbucks for North America, Sara Trilling will continue in her role and answer directly to Niccol.
The coffee giant is “beloved,” but has “drifted” from its core, according to Niccol, the former CEO of Chipotle (CMG), who recently wrote an open letter to staff members and patrons.
Its US stores “do not always deliver.”. The product is inconsistent, the wait time is excessively long, the handoff is too hurried, and the menus can seem transactional,” he stated.
Same-store sales in the US decreased by 2% during the previous quarter.
Niccol stated that while the company is looking to expand globally, including in the Middle East, it will “work to dispel misconceptions about our brand.” Niccol will initially concentrate on the US market. “.”.
During Howard Schultz’s second term as CEO in 2013, Conway became a member of the team. He’s worked for Starbucks in a variety of capacities, including global channel development, Starbucks Canada, and the US and Latin America licensed store business.
Under Conway’s leadership as head of global channel development, the company’s main growth drivers included introducing Keurig’s K-Cups (KDP) into grocery stores.
Since 2015, Conway has also been a member of the McCormick (MKC) board of directors.
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Yahoo Finance’s senior reporter is Brooke DiPalma. You can send her an email at bdipalma@yahoofinance.com or follow her on Twitter at @BrookeDiPalma.
