Starbucks has a new chief executive with a talent for wrapping burritos. The coffee chain announced Tuesday the appointment of Brian Niccol, CEO of Chipotle Mexican Grill, who will take the helm starting Sept. 9.
The news comes just 17 months after Starbucks hired Laxman Narasimhan to take the reins from founder (and returning CEO) Howard Schultz. While Narasimhan spent six months training alongside baristas to learn how to create the full drink menu, his legacy was marred by conflicts with unions, plummeting sales, activist investors, and even his CEO predecessor. After what Narasimhan described as a “disappointing” second-quarter performance at Starbucks, Schulz blasted the company on LinkedIn, arguing the chain needed to overhaul its strategy.
“At any company that misses badly, there must be contrition and renewed focus and discipline on the core,” he wrote. “Own the shortcoming without the slightest semblance of an excuse.”
Schulz seems more inclined to back his company’s new CEO, telling Mellody Hobson, the chain’s sixth-largest shareholder, that the hire of Niccol, who also previously served as Taco Bell’s CEO, was a “home run.”
Fortune met with Niccol in May at a New York City Chipotle restaurant to learn more about how the serial C-suite executive spends his day running a company that pulled in nearly $3 billion in revenue last quarter.
Like Narasimhan, Niccol said he also spent time training with staff at a Chipotle kitchen when he first joined to learn the tools of the trade—most importantly, how to wrap the perfect burrito.
“Wrapping a burrito is an art; you need some repetitions to do it fast,” he told Fortune, but admitted he’s a “very slow burrito roller,” and ripped a few too many tortillas during training.
“You get a real appreciation for what it takes to get the restaurant ready, both from morning prep standpoint, and then how to handle a peak, and then also what it takes to close a restaurant,” he said.
Chipotle portion debate
The fast-casual chain has recently come under fire from customers slamming its supposedly shrinking portion sizes on social media.
In the May interview with Fortune, Niccol said “portions have not gotten smaller,” and offered a tip for scoring a bigger bowl: Give workers a secret look. However, Wells Fargo analyst Zachary Fadem and his team later decided to “put the ‘weight debate’ to rest” by comparing the size of 75 burrito bowls, and found the orders to be wildly inconsistent.
Following the release of Chipotle’s second-quarter earnings in July, Niccol addressed the portion debate, telling investors there was “never a directive to provide less to our customers,” and committed to making portions more standard.
“Generous portion is a core brand equity of Chipotle,” Niccol said on the earnings call. “It always has been, and it always will be.”
Now, with nearly a decade of experience as CEO of Fortune 500 companies under his belt, Niccol is ready for a new chapter with Starbucks. He told Fortune the secret to juggling his work-life balance is taking control of his calendar.
“Somebody recommended this to me: if you say yes to a work activity or a personal activity, then that means yes,” he told Fortune, adding, “you also have to say no to things.”
The CEO, who spends his weekends reading, playing golf, or moonlighting as an “average photographer,” gave Fortune an exclusive look at his daily routine, which kicks off bright and early at 5:45 a.m.
Burritos, meetings, and the key to work-life balance
5:45 a.m.: Niccol immediately begins his morning getting up to speed on the news of the day, reading the Wall Street Journal and turning on CNBC’s Squawk Box while enjoying his first cup of coffee. He estimates he consumes three or four cups per day.
The chief executive prefers espresso, especially a good Americano: “Always hot, and if I can, I like to have a cookie with it.”
7 a.m.: Niccol readies himself for a workout, alternating between strength training, weight lifting, and a “run-slash-walk.”
“I am 50, so I don't want to run too much,” he jokes.
Breakfast typically consists of a shake with fruit, oats, peanut butter, and protein powder, or Niccol will switch up the menu with eggs and sausage. Following his meal, Niccol drives his youngest daughter to school before heading to work.
8:30 a.m.: After a 15-minute commute through the scenic views of Newport Beach, Calif.,, Niccol arrives at Chipotle’s headquarters. He begins his day checking in with his assistant for a brief run-down of meetings and objectives.
His first hour is spent answering emails, setting the schedule for the week. Around 10 a.m., Niccol heads to the team’s first staff meeting for a two-hour-long agenda in which his direct reports provide project updates.
“We come together to talk about their respective parts of the business and how it's impacting the overall performance,” he said.
12 p.m.: At Chipotle HQ, lunch is a “highlight of the day,” Niccol said. Before you ask, “of course we have Chipotle.”
The chief executive admits, however, he doesn’t eat the grilled menu every day: “If I could, I would, but not every day.”
His go-to order is a chicken bowl with white rice, fajita veggies, pico de gallo, and a little bit of cheese. His full order also includes a barbacoa quesadilla and chips and guacamole on the side.
“It's probably a little too much food for my age,” he said. “But you know, it's hard to resist.”
1 p.m.: Following lunch, Niccol falls right back into the daily grind, fielding phone calls, reading materials, and preparing for upcoming meetings.
His team then assembles for a strategic initiatives meeting for another several-hours-long conversation to review key items they’re working on.
3:30 p.m.: The tail end of Niccol’s day is dedicated to one-on-one meetings with company leaders before wrapping up around 5:30 p.m.
“I do try to end the day where you don't have any meetings or phone calls so that you can kind of just think through what happened throughout the day,” he said. “What do you think you want to talk about tomorrow? Or are we working on the right things? And are we talking about the right stuff?”
Niccol dedicates 20 to 30 minutes to reflect on the work day and plan ahead for the next day’s goals before heading home.
6:30 p.m.: Niccol helps prepare a meal for his family with his wife, Jennifer. Around 7 p.m., the family congregates to eat, but with their busy schedules, it’s “not usually a sit-down dinner,” Niccol said.
“The kids complain about what they didn't particularly like that we made,” he said. After dinner, Niccol and his wife walk their miniature golden Labradoodle, Lucky, and their routes often pass through Corona del Mar State Beach.
“Usually, the walk with the dog is about a 20-to-30-minute walk,” he said “I could go longer, but he doesn't want to walk as much anymore.”
9 p.m.: Niccol and his family wind down by watching TV together. Their usual rotation includes a Netflix show–they recently finished The Gentlemen—or ESPN’s SportsCenter. Recently, they’ve spent evenings watching his youngest daughter’s favorite show: Modern Family.
“I feel like I've rewatched all of them,” he said. “We're in, I think, season 10 or 11. It's a funny show.”
After winding down with his family, the CEO usually heads to bed with “lights out by 10.”
