I Name CEO Starbucks CEO Brian Niccol "Worst CEO of 2025"

"I started the call by explaining to Lee that each year I select five finalists for worst CEO of the year, and this time the first name released was Starbucks CEO Brian Niccol. Despite joining in late 2023 and arriving with the prestige of his Chipotle turnaround, the early indicators are unfavorable. Store-level execution continues to deteriorate, product availability is inconsistent, and the company faces expanding employee strikes. These disruptions are now visible enough to undermine the brand's long-standing premium positioning."

"When we reviewed Starbucks' decision to place its China operations into a new joint venture, the strategic risk became clear. For decades, investors believed China would ultimately surpass the United States as Starbucks' largest market. Niccol's move effectively reduced direct control of the business in exchange for a payment that appears low relative to the size of the market opportunity. Lee noted that the new partner has no evident background in coffee retailing, which deepens doubts about long-term execution."

"Operational Misfires and Mounting Labor Issues Customers routinely report key menu items being unavailable. In the restaurant industry, that is a cardinal sin. High employee turnover, low hourly wages, and localized labor disputes add fuel to the fire. Even though the number of striking stores remains modest, we both acknowledged how quickly labor momentum can accelerate once early wins appear."

Brian Niccol joined Starbucks in late 2023 with a strong reputation from Chipotle, but early indicators show operational and strategic challenges. Store-level execution is deteriorating, with frequent product unavailability and mounting employee strikes that undermine the brand’s premium positioning. High employee turnover, low hourly wages, and localized labor disputes are worsening service reliability and could accelerate broader labor momentum. The decision to move China operations into a new joint venture reduced direct control and provided a payment that appears small relative to the market opportunity, while the new partner lacks evident coffee retail experience. Pricing remains high compared with quick-serve alternatives, increasing consumer trade-down risk during persistent food inflation.

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