Starbucks Appoints Former Taco Bell Executives to Drive "Back to Starbucks" Plan

Starbucks Corporation (SBUX) has announced the appointment of two former Taco Bell (YUM) executives, Mike Grams and Meredith Sandland, to key leadership positions.

* Mike Grams will assume the role of Executive Vice President (EVP) and Chief Stores Officer, overseeing retail teams and store performance.
* Meredith Sandland will serve as EVP and Chief Store Development Officer, responsible for store development strategy and design.

These appointments align with CEO Brian Niccol's "Back to Starbucks" plan, which aims to strengthen store operations and improve customer experiences. Under Niccol's leadership, the company has introduced a new operating model that emphasizes "clear ownership, accountability, and an appropriate scope for each role."

Grams and Sandland will relocate to Seattle and begin their roles in February. Both executives have extensive experience in the quick-service industry. Grams previously served as Chief Operating Officer at Taco Bell, while Sandland held the position of President and CEO at delivery meal company Empower Delivery.

Sara Trilling, EVP and President of Starbucks North America, is leaving the company. The company plans to split Trilling's role into two and has announced that Trilling will not take on the new roles. Arthur Valdez, EVP and Chief Supply and Customer Solutions Officer, is also stepping down.

Niccol stated that "both Sara and Arthur agree that integrating the customer solutions team with the stores team is the right approach." A successor to Valdez will be announced in the coming weeks.

Trilling and Valdez will remain with the company for a few months to assist with the transition. Starbucks is expected to release its first quarter fiscal year 2025 results on Tuesday after market close. Analysts anticipate revenue of $9.32 billion, a slight decline from the previous year. Same-store sales and foot traffic are projected to decrease year-over-year.

Despite the recent challenges, Starbucks shares have gained 5% in the past year and 32% in the past six months. The company continues to focus on improving its operations and delivering value to customers and shareholders.