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Brian Niccol

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— CH. 1 · INTRODUCTION —

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Brian Niccol

8 sections
  • Brian Niccol, born in 1974, is the American executive whose hiring sent Starbucks shares up 24.5 percent on the 13th of August 2024. That was the day the company named him its incoming chairman and chief executive. The reaction came after a career spent at food brands, from Pringles to Pizza Hut, Taco Bell and Chipotle. How does a young man who set out to study engineering end up as the person a coffee giant calls for a rescue? What did his earlier turnarounds involve, and what did they cost the people around him? And what happens when the executive hired to repair a company becomes a lightning rod himself?

  • Philadelphia is where Niccol comes from, and engineering is what he first planned to study at Miami University. A marketing class changed the plan. It piqued his interest enough that he began taking several elective courses in business. He also joined the Phi Delta Theta fraternity there.

    In 1995, while still a student, he took a college internship at Procter & Gamble. He graduated from Miami University in 1996. Later he added an MBA from the University of Chicago's Booth School of Business.

    After graduation he began his career in brand management at the same company. He spent two years as the brand manager for ThermaCare, a heat-wrap product. In December 2002 he moved over to represent Pringles. That snack brand was the last packaged product on his record before the restaurant industry.

  • In 2005, Yum! Brands hired Niccol as a vice-president of strategic marketing, and a study of fathers became his first notable project. The research identified fathers as an important customer segment. Acting on it helped lift sales at Pizza Hut and won the chain an additional point of market share. Two years later he was appointed Pizza Hut's chief marketing officer.

    The Great Recession was among his main challenges in that job, and digital tools were a large part of his answer. In January 2008, customers could place orders by text message or through the website. A year later Pizza Hut released an iPhone app. After two weeks it had been downloaded 100,000 times from the App Store. Within three months it had generated $1 million in sales. In October 2010, the chain announced a partnership with Foursquare to reward loyal customers with free breadsticks.

    Not every experiment worked. Through the first half of 2009, Pizza Hut tried a shortened logo reading simply "The Hut". The public reacted poorly, and the company retracted it. Niccol had argued that the shorter name "ties in nicely with today's texting generation". He said the company wanted to make the phrase "common vernacular" for Pizza Hut.

    Taco Bell would be his next stop, in October 2011.

  • Millions of dollars had gone into fighting a class action lawsuit over the quality of Taco Bell's beef by the time Niccol arrived as chief marketing and innovation officer. The lawsuit was dismissed, yet sales still dropped 5% in the second quarter of 2011. The company attributed the drop to damaged consumer perceptions of its food. Sales had already stagnated before he joined.

    In January 2012, the brand introduced a breakfast menu. It also launched a more upscale line called Cantina Bell, built to compete with fast-casual restaurants. Those plans helped reverse the chain's fortunes, and the company posted an 8% increase in fiscal year 2012.

    On the 1st of January 2015, Niccol was promoted to chief executive officer of Taco Bell. He presented an ongoing plan to make the chain appealing to Millennials and the generations after them. His time as chief executive is described as a successful turnaround effort.

    Chipotle Mexican Grill, one of the fast-casual rivals Cantina Bell was built to challenge, would eventually become his employer.

  • Steve Ells, the founder of Chipotle, was the person Niccol replaced as chief executive in March 2018. The company he inherited had been hit by a string of food safety issues beginning in 2015, and customer trust had suffered. A new queso had also met with mixed reception. In June 2018, Chipotle announced it would close up to 65 locations that year.

    Another setback arrived in July 2018. An outbreak of Clostridium perfringens at a location in Ohio made over 600 people sick. In September, Niccol responded with a marketing campaign reminding customers of the restaurant's fresh ingredients and preparation. He credited those advertisements with helping to improve sales.

    Newport Beach, California, was where Niccol had moved to take the Taco Bell job. He did not move back east to Denver for Chipotle. Instead, the company moved its headquarters from Denver to Newport Beach.

    Under his leadership, Chipotle's revenue doubled and its profits increased almost seven times. The stock price rose by almost eight times. He also increased salaries for the retail staff and expanded employee benefits. His total compensation in 2023 was $22.5 million, which was 1,354 times the median employee pay at Chipotle that year.

    His tenure there ended on the 31st of August 2024, and a new job began on the 9th of September.

  • Mellody Hobson as chairman and Laxman Narasimhan as chief executive were the two Starbucks leaders whose roles Niccol took over. His package was large. It included a starting salary of $1.6 million and a $10 million starting bonus. Another $75 million came as equity grants designed to pay out over time. His annual cash incentive had a target of 225 percent of his base salary. Total compensation for 2024 reached $97.8 million, equal to 6,666 times the median employee pay at Starbucks.

    At the start of his tenure, Niccol developed and began carrying out a plan called "Back to Starbucks". It included the potential for doubling the company's store count in the United States. The plan was not cheap. In the fiscal second quarter, operating margin fell to 6.9% from 12.8% as spending swelled on the turnaround.

    Starbucks Center in Seattle is the headquarters Niccol refused to move. He declined to relocate it closer to his residence in Orange County, California. Investors were disappointed. They had hoped a move would revitalize the company by tapping the much larger Southern California talent market, as had happened at Chipotle.

    How he travels between his home and that Seattle headquarters became its own controversy.

  • Augusta, Maine, was the site of a Chipotle store closed in 2022 under Niccol's leadership. Employees there had tried to make it the company's first unionized location. The workers filed a complaint with the National Labor Relations Board. The board ruled that the closure was an illegal act of union-busting.

    A workers' strike at Starbucks in 2025 began during his time as chief executive. It arose amid claims of unfair labor practices and stalled contract negotiations.

    A jet commute of roughly 1,000 miles drew criticism in 2024. As the newly appointed chief executive, Niccol was reported to be using the company-owned jet to travel from his residence in Newport Beach to Seattle. He was expected to work in person there at least three times a week. At the time, Starbucks was cutting commuting benefits for store employees. Environmentalists raised concerns about greenhouse gas emissions and other harmful environmental effects.

    Away from these disputes, Niccol has collected board seats and honors across several industries.

  • Walmart and Starbucks are the two companies whose boards of directors Niccol currently sits on. Before that he served on the boards of Chipotle Mexican Grill, KB Home and Harley-Davidson. He was also a member of the Board of Governors for the Boys & Girls Clubs of America.

    In 2019, he appeared on The Bloomberg 50 and was named to Fortune's Businessperson of the Year recognition. The University of Chicago's Booth School of Business placed him on its Distinguished Alumni list in 2020. In 2021, EatingWell included him on its American Food Heroes list.

    Niccol is married to Jennifer, and the couple have three children. At Starbucks, the job is still being written, and he holds it alongside his Walmart board seat.

Updated

Common questions

Who is Brian Niccol?

Brian Niccol, born in 1974, is an American businessman and the chairman and chief executive officer of Starbucks. He previously led Chipotle Mexican Grill and Taco Bell and held marketing roles at Pizza Hut and Procter & Gamble.

When did Brian Niccol become CEO of Starbucks?

Brian Niccol began as Starbucks chairman and chief executive on the 9th of September 2024. Starbucks had named him incoming chairman and CEO on the 13th of August 2024, replacing Mellody Hobson as chairman and Laxman Narasimhan as CEO.

What did Brian Niccol do at Chipotle?

Brian Niccol became Chipotle's CEO in March 2018, replacing founder Steve Ells, and led it until the 31st of August 2024. During his tenure revenue doubled, profits rose almost seven times and the stock price rose almost eight times.

How much is Brian Niccol paid at Starbucks?

Brian Niccol received $97.8 million in total compensation in 2024, equal to 6,666 times the median Starbucks employee pay. His package included a $1.6 million starting salary, a $10 million starting bonus and $75 million in equity grants.

What is the Back to Starbucks plan Brian Niccol started?

Back to Starbucks is the turnaround plan Brian Niccol developed and began implementing at the start of his tenure as CEO. It included the potential for doubling Starbucks's store count in the US, and operating margin fell to 6.9% from 12.8% in the fiscal second quarter as spending rose.

What controversies has Brian Niccol faced?

The National Labor Relations Board ruled that Chipotle's 2022 closure of a store in Augusta, Maine, was illegal union-busting. In 2024 he was also criticized for using the Starbucks company jet for a commute of roughly 1,000 miles from Newport Beach to Seattle.

All sources

61 references cited across the entry

  1. 3NewsStarbucks Ousts CEO and Taps Chipotle's Brian Niccol as BossDaniela Sirtori — Bloomberg — 13 August 2024
  2. 8NewsHow I Made It: Taco Bell CEO Brian NiccolSamantha Masunaga — 2015-07-19
  3. 9MagazinePizza Hut names Niccol CMO2007-09-20
  4. 13Magazine40 Under 40Kate Macarthur — 2007-07-16
  5. 14MagazinePizza Hut Names Brian Niccol CMOEmily Bryson York — 2007-09-20
  6. 15MagazineHot, Fast and EngagedBrian Quinton — June 2010
  7. 17MagazinePizza Hut First Pizza Chain to Launch iPhone AppEmily Bryson York — 2009-07-15
  8. 20MagazineWhen Digital Marketing Actually WorksCalvin Jones et al. — 2010-10-07
  9. 21MagazineWho Wants to Be the Mayor of Pizza Hut?Austin Carr — 2010-08-05
  10. 23MagazinePizza Hut: No name changeRon Ruggless — 2009-06-22
  11. 24MagazineQ&A: How Pizza Hut Is Going After the Over-35 CrowdElaine Wong — Adweek — 2009-03-07
  12. 25MagazineTaco Bell names new CMOMark Brandau — 2011-10-14
  13. 30MagazineTaco Bell CEO: 2015 plans include deliveryLisa Jennings — 2015-03-24
  14. 31NewsStarbucks is struggling. So it hired fast food's Mr. Fix-ItNathaniel Meyersohn — CNN — 14 August 2024
  15. 32NewsStarbucks Ousts CEO, Names Chipotle Boss as ReplacementHeather Haddon — 13 August 2024
  16. 38NewsChipotle to close up to 65 stores this yearZlati Meyer — 2018-06-27
  17. 41NewsChipotle Finds Its Voice With a New Ad CampaignDavid Marino-Nachison — 2018-09-24
  18. 46NewsStarbucks taps Chipotle's Niccol as CEO in surprise move, shares soarSvea Herbst-Bayliss et al. — Reuters — 13 August 2024
  19. 47NewsStarbucks replaces CEO Laxman Narasimhan with Chipotle CEO Brian NiccolAmelia Lucas et al. — CNBC — 13 August 2024
  20. 48NewsStarbucks forces out CEO, brings in Chipotle's Brian NiccolAaron Gregg et al. — 13 August 2024
  21. 57The Bloomberg 50Bloomberg — 4 December 2019
  22. 61NewsStarbucks CEO's jet commute to work: The carbon footprint will blow your mindIndia Today Environment Desk — 27 August 2024

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