Incoming Starbucks CEO’s tall order: Calming anxious employees

livemint.com:

Incoming Starbucks chief executive Brian Niccol is set to partake in a ceremonial “first sip" of coffee Monday as he reports for his first day of work. For Starbucks employees, it is another change to digest. The coffee chain’s board of directors, investors and longtime leader Howard Schultz have embraced Niccol since his hiring last month, praising the former Chipotle Mexican Grill CEO as the best possible choice to turn around Starbuck’s operations and restore its brand after a turbulent few years.

At the company’s Seattle headquarters and across its U.S. cafes, the reception is more mixed. Some Starbucks workers said the rapid turnover in the CEO role—Niccol will be the company’s fourth in less than three years—is fatiguing.

Many said they were hopeful that Niccol’s restaurant-industry experience would lead to improvements, though some felt jarred by former CEO Laxman Narasimhan’s abrupt August ouster, a year and a half into the job. Niccol plans to host a town hall this week, meet with baristas in cafes and employees at headquarters, and start assessing the company’s challenges and opportunities. Starbucks for years has struggled with cafe operations, where orders for often-complex drinks have frequently overwhelmed baristas and created long lines of frustrated customers.

Snarled stores and rising prices have contributed to employee turnover and declining traffic, pressuring the company’s results. Over the past five years, Starbucks shares have declined by about 5%, while the S&P 500 stock index has gained around 82%. In recent months, the company has faced activist investors and public criticism from Schultz over its operations.