Jonathan Maze

Editor-in-Chief

Articles by
Jonathan Maze

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Financing

Starbucks opts for experience over culture

The Bottom Line: In hiring Brian Niccol, the coffee shop giant opted to bring in an experienced hand, rather than focus purely on culture.

Leadership

Chick-fil-A names Susannah Frost president

Frost currently leads restaurant development and field operations for the chicken sandwich chain. The company also named a new chief operating officer.

The sandwich giant plans to give digital customers $6.99 Footlong subs starting later this month. The company has seen soft sales in recent months as consumers cut back on dining.

The coffee shop chain’s challenges are numerous, from its complexity to its drinks to China. It has activist investors and a vocal chairman emeritus in Howard Schultz. Now it has its second new CEO in two years.

The Bottom Line: Restaurant companies need to get consumers back in the doors. That could require lower margins, even if investors don’t like it.

The coffee shop giant will pay Niccol $85 million to make the jump from Chipotle Mexican Grill. Starbucks will also open a small remote office in California.

A Deeper Dive: Kerri Harper-Howie, a second-generation McDonald's operator out of California, joins the RB podcast to talk about the ups and downs of operating a franchise.

The Bottom Line: When Starbucks announced its hiring of the Chipotle Mexican Grill CEO to lead the company, investors poured money into the coffee brand—and hammered the burrito chain’s stock.

Laxman Narasimhan is stepping down from the coffee shop chain effective immediately. Niccol, the CEO of Chipotle Mexican Grill, will take over on Sept. 9.

Parent company Topgolf Callaway Brands is conducting a strategic review of the golf-focused restaurant concept to either reverse its sales decline or spin it off.

The drive-thru coffee chain increased its store-level profitability last quarter, despite higher labor costs thanks to the state’s $20 fast-food wage.

The Bottom Line: Restaurant executives have talked frequently about the “challenging” or “tough” macro environment so far this earnings season. They have good reason.

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