Consumer

Starbucks’ New CEO Has to Contend With Crisis and Howard Schultz

  • Former leader emails executive team with advice, complaints
  • Coffee chain is one of the worst performing restaurant stocks
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Newly appointed Starbucks Corp. Chief Executive Officer Brian Niccol is taking over a company in crisis. The coffee chain on Tuesday ousted its previous leader after he failed to revive a flagging business and assuage board members and the ever-present Howard Schultz.

Niccol, who orchestrated a remarkable turnaround at Chipotle, will have to contend with inflation-weary consumers forgoing $6 iced lattes and staffing changes that have angered once-loyal customers. On top of that, activist investors Elliott Investment Management and Starboard Value have been circling, and three-time former CEO Schultz has been both publicly and privately griping about the business.