Big day today!
Free for ALL Friday lives on! The people have spoken! (Seriously, the emails I received were about 150-5 in favor.) Glad to hear people like it. I did have an idea for something else in that space, but I think I might finesse it a bit more and unveil it on a different day. Change is good! OK, let’s get into today’s newsletter …
I was working on my laptop at Starbucks, and I asked a favor of the person next to me.
"I'm going to run to the bathroom," I began. "Do you mind keeping an eye on my things for a second?”
Sure, she said.
“If anyone tries to take them,” I continued, “please tackle them and hold them here until I get back."
She laughed a little. I felt good. Then, it occurred to me I'd been making that same lame dad joke at Starbucks for well over a decade.
Yes, I'm a longtime Starbucks fan -- despite everything. Even though I rarely order anything other than black coffee, I'd have to guess I've spent many hundreds if not thousands of dollars over the years.
I've written about Starbucks at Inc. often enough, too -- from the Starbucks effect on entrepreneurship, for example, to the weird trick using Starbucks gift cards that the CIA uses to contact secret agents.
But I've also seen what's happened to Starbucks as a loyal customer, and I've written about that as well: Falling sales and share prices, customer dissatisfaction, and then, last month -- an abrupt change with a new CEO.
Meet Brian Niccol, who spent the last six years as CEO of Chipotle, and who takes over as the new top leader at Starbucks starting today.
Why did Niccol get the job, replacing Laxman Narasimhan, who only had the job for less than two years?
I suppose the short answer is that Starbucks is in dire need of a turnaround, and Niccol -- both at Chipotle and before that as the CEO of Taco Bell -- has built a reputation as a turnaround specialist.
In fact, Chipotle's revenue and profit have skyrocketed under Niccol's leadership. Meanwhile, employees saw some improvements -- raises and a stock split designed to benefit them, for starters, although I'm sure some employees might beg to differ on that point.
But as for customers? It's a funny thing to say, but even as Chipotle's financial performance and stock price went up during Niccol's tenure, some customers said their satisfaction went in the other direction.
Anyway, I like Chipotle and I like Starbucks. In fact, I’m finishing today’s newsletter in a Chipotle.
But I'm curious, as many of the most loyal Starbucks customers will be, how Niccol's arrival will change Starbucks.
Starbucks itself clearly thinks he'll have a big impact, given his potential $113 million total compensation package, along with the right to work remotely in Newport Beach, California -- a thousand miles and probably 80 annual days of sunshine away from Starbucks in Seattle.
One unusual thing about the choice of Niccol, perhaps: There are so many Starbucks in markets like the United States that a lot of the growth opportunity for Starbucks is overseas.
But, Chipotle has a very small international footprint by comparison -- mostly just a handful of restaurants in Canada and Europe.
Anyway, if past is prologue, I guess we might expect the same thing as a best case scenario at Starbucks under Niccol's leadership at Starbucks that we did at Chipotle.
That would mean a focus first on increased revenue, profit, and stock price; then on marginally better employee relations; and then a customer experience just barely good enough to bring people back and keep them there.
I'm not sure what this says about me, but I'll probably be among them. At this point, I've got too much invested in my long-running dad jokes anyway.
7 other things …
Big night tomorrow: ABC News is hosting the second debate for the 2024 United States Presidential Election on Sept. 10 at 8 p.m. Central Time in Philadelphia. The debate comes as former President Trump has taken a slight lead over Vice President Harris in the latest national poll, 48% to 47%. (Austin American-Statesman, Politico)
The swift decision by prosecutors to charge the father of the 14-year-old suspect in the Georgia high school shooting will be another test of whether parents can be held criminally responsible for their children's actions. While details in the case against Gray, 54, remain limited, Georgia authorities arrested him Thursday on allegations that he had allowed his son to possess a weapon. (NBC News)
The commander of a Navy destroyer that’s helping protect the San Diego-based aircraft carrier USS Theodore Roosevelt in the Middle East has been relieved of duty about four months after he was seen in a photo firing a rifle with a scope mounted backward. The San Diego Union-Tribune reported that Cameron Yaste, commanding officer of the destroyer USS John McCain, was removed on Friday. (The Independent)
The USS New Jersey, the first U.S. Navy submarine fully integrated for mixed gender crews will join the Navy fleet next week. The fast-attack submarine's modifications included obvious ones — more doors and washrooms to create separate sleeping and bathing areas — and some that are more subtle — lowering some overhead valves and making them easier to turn and installing steps in front of the triple-high bunk beds. (Stars & Stripes)
A woman accused of attempting to drown two Muslim children in an apartment complex pool was recently indicted by a Texas grand jury. Elizabeth Wolf, 42, allegedly made “racial statements” before grabbing a 6-year-old boy and trying to drown his 3-year-old sister. (Gazette Extra)
The wealth of ultra-rich families will likely swell to $9.5 trillion by 2030, according to estimates from consultancy Deloitte, as family offices grow and morph to rival hedge funds. The figure would mark a 73% jump from the current $5.5 trillion controlled by people represented by family offices, according to the report. (Bloomberg)
“Fun” can be defined in many ways, but one study reveals that Americans can collectively agree on certain states that are considered more fun than others. A new study from WalletHub revealed that Florida is ranked number 1 among all 50 states across 26 key indicators of what people view as a good time, ranging from daytime activities to nightlife, while also considering cost-effective options. (WFLA)
Thanks for reading. Photo by Athar Khan on Unsplash. I wrote about some of this at Inc.com. See you in the comments.
I have been a Chipotle customer for over 20 years and I have to say the customer experience has gotten worse, especially over the last few years. Overcooked rice, burned chicken and employees who consider English a second (or third) language. The pandemic has presented us with a harsh reality: the customer no longer is a priority.
I agree that Chipotle’s quality has diminished over the past few years, so much so that my wife and I rarely think of it as a food option these days. It used to be what we considered about the only “healthy” fast-food type option.
Starbucks was a favorite of mine for years. It provided consistency when traveling as well a could be found in most airports. Since retiring we have our favorite coffees we grind and brew at home in our OXO grinder and brewer.