Brian Niccol, the CEO of Chipotle, has announced he will leave the fast-casual restaurant to become the new chief executive of Starbucks. This news came from both companies on Tuesday.

Niccol’s start date in his new role will be September 9, and he will replace Laxman Narasimhan, who has resigned “with immediate effect,” as noted in a Starbucks press release. Niccol’s last working day at Chipotle will be August 31, as stated in a separate announcement.

During this transition, Starbucks Chief Financial Officer Rachel Ruggeri will temporarily assume the role of CEO.

Narasimhan’s sudden exit follows a 17% decline in Starbucks’ stock shares this year and comes after a critical open letter from former CEO Howard Schultz, who slammed the company’s leadership. Although Schultz did not specifically mention Narasimhan in his LinkedIn post, he indicated that the chain’s U.S. operations are the “main reason for the company’s decline.”

On Tuesday morning, Starbucks’ shares rose over 23% in trading.

Who is Brian Niccol?

Brian Niccol has been at the helm of Chipotle since 2018 and has served as the chairman of its board since 2020.

Niccol is recognized for revitalizing Taco Bell during his previous leadership there. He succeeded the founder of Chipotle, Steve Ells, and quickly took action to help the company recover from a food safety scandal by retraining all employees nationwide.

During a call with investors in the second quarter this year, Niccol mentioned plans to ensure employees consistently prepare bowls and burritos correctly to address widespread complaints regarding portion sizes. This issue led to a viral TikTok trend where customers filmed their orders in an effort to pressure staff to provide larger servings.

Last July, Niccol oversaw the introduction of the Autocado, a prototype designed to automate the cutting, coring, and peeling of avocados for guacamole preparation.

Starbucks praised Niccol’s achievements, noting that under his leadership, Chipotle’s revenue nearly doubled and its stock price surged by nearly 800%.

“I am immensely proud of what we’ve accomplished since I joined Chipotle in 2018,” Niccol expressed in a statement. “The strategic goals our team has set have put Chipotle in a position for both current success and future growth. Departing from such a remarkable company and talented individuals is challenging, but I leave knowing the business is well-prepared and has a strong, experienced leadership team.”

Following Niccol’s departure, Chipotle’s board has appointed Chief Operating Officer Scott Boatwright as interim CEO while they search for his permanent successor.

“I’m thrilled for the new opportunity to lead our business forward,” Boatwright said in a statement. “We have a top-tier organization filled with talented leaders who are committed to our brand and mission.”

Niccol’s New Role at Starbucks

Niccol’s appointment as Starbucks’ CEO follows Narasimhan’s departure, less than 18 months after he took charge of the Seattle-based coffee company in March 2023.

Starbucks board chair Mellody Hobson expressed excitement about bringing Niccol on board, believing he will be a “transformative leader”.

“His exceptional career speaks volumes. Brian embodies our culture and comes with extensive experience and a strong record of promoting innovation and growth,” Hobson stated. “He shares our belief that a remarkable customer experience begins with an exceptional partner experience.”

Looking ahead, Starbucks is gearing up to update some of its stores with tech enhancements at new locations and 1,000 existing ones.

“I am eager to join Starbucks and thankful for the chance to help guide this wonderful company, together with our dedicated partners,” Niccol remarked in a statement. “I have

Starbucks is celebrated for its well-known brand, distinctive culture, and dedication to fostering meaningful human connections worldwide.