Starbucks names Mike Grams as operating chief in top brass shuffle to boost business

Audio By Carbonatix

Enlarge

(Reuters) -Starbucks said on Wednesday North America chief stores officer Mike Grams would now serve as the operating head of the coffee chain as part of a leadership reshuffle aimed at boosting performance.

In January, Grams assumed the chief stores officer role after North America president Sara Trilling’s responsibilities were split into two roles, when she stepped down.

Following the split, Meredith Sandland was named North America chief store development officer, and she, along with Sanjay Shah, the chief supply chain officer, will now report to Grams.

These moves are part of CEO Brian Niccol’s plan to return Starbucks to its U.S. coffee house roots by introducing a simpler menu that includes ceramic cups, refills and condiment bars, while also reducing wait times at cafes to under four minutes.

Starbucks also said it was merging its global coffee and sustainability team with its global brand team.

This initiative is to reinforce coffee as the core of its menu, product innovation and marketing strategies, and to embed sustainability in its products, packaging and operations.

In April, the coffee giant reported disappointing global comparable sales and profit for the second quarter, as inflation and economic uncertainty increased costs and dampened U.S. demand, challenges that Niccol, who was brought in last year to revive the business, is now tasked with addressing.

Niccol is known for his success as a fast-food executive, notably for reviving Chipotle Mexican Grill during his tenure as CEO since 2018.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Mohammed Safi Shamsi)