Starbucks CEO replaced by Brian Niccol, a fixer who revived Chipotle when the chain was in distress

(AP) — In 2018, when Chipotle was reeling from multiple food poisoning outbreaks that had sickened 1,100 people, the company called Taco Bell CEO Brian Niccol to turn things around.

As Chipotle’s Chairman and CEO, Niccol beefed up the company’s marketing and product innovation, added a loyalty program and improved store operations. He also instituted employee benefits, like a program that pays employees’ college tuition costs at certain schools.

Chipotle’s revenue since then has nearly doubled.

On Tuesday, Niccol answered another call, this time from Starbucks. The Seattle coffee giant named Niccol as its new chairman and CEO, hoping he can revive fading sales and re-establish Starbucks as a destination where customers are willing to pay premium prices.

“I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners,” Niccol said.

However, Niccol faces far larger and deeper challenges at Starbucks, which has 38,000 stores worldwide compared with Chipotle’s largely U.S.-based chain of 3,500 restaurants. Niccol has to figure out how to get inflation-weary U.S. customers back into stores for its pricey drinks.

“I will pay $9 for a burrito. I’m not sure I’m going to pay $9 for a cup of Venti shaken espresso,” said Nancy Tengler, CEO of Laffer Tengler Investments, which owns shares in Starbucks and Chipotle.

In the U.S., Starbucks has struggled to balance demand for mobile orders and faster service with a place where other customers can find relaxing cafe environment. Tengler said long wait times and a deluge of mobile orders have damaged the in-store experience at Starbucks, and Niccol will have to develop a plan to flip that around.

But Starbucks is facing challenges on multiple fronts in its drive for growth.

In China, Starbucks’ second-largest market with 6,500 stores, customers are increasingly opting for coffee from lower-priced rivals. In the Middle East Starbucks is seeing boycotts related to the Israel-Hamas war.

Niccol replaces Laxman Narasimhan, who is stepping down immediately after spending a little more than a year in Starbucks’ top job. Niccol will become Starbucks’ chairman and CEO on Sept. 9. Chief Financial Officer Rachel Ruggeri be the interim CEO until then.