Starbucks unveiled a major leadership overhaul on Tuesday, as CEO Brian Niccol brought in two seasoned executives from Taco Bell to implement his “Back to Starbucks” strategy. The announcement marks another step in Niccol’s plan to reshape the company’s retail operations and improve accountability within its leadership structure.

“We need a new operating model for our retail team, with clear ownership and accountability, as well as appropriate scope for each role,” Niccol explained in a letter to employees shared on Starbucks’ website.

Niccol, who previously led Taco Bell under Yum Brands before a six-year stint as CEO of Chipotle, has been leaning on familiar faces to execute his turnaround vision. Last fall, he appointed Tressie Lieberman, a Chipotle and Yum Brands alum, as Starbucks’ global chief brand officer.

Key Leadership Changes and New Roles

The reshuffling includes splitting the position of North American president into two separate roles. Current North American president Sara Trilling, a Starbucks veteran of over 20 years, will depart the company.

Starting in February, Meredith Sandland will step in as chief store development officer. Sandland, CEO of Empower Delivery and former chief development officer at Taco Bell, brings deep expertise in restaurant operations and technology.

Meanwhile, Mike Grams, with over 30 years at Taco Bell, will take on the role of North America chief stores officer. Grams’ impressive journey, from restaurant general manager to global chief operating officer, underscores his operational prowess.

Both Sandland and Grams will spearhead Niccol’s ambitious “Back to Starbucks” strategy, focusing on three core goals:

1. Reducing service times to under four minutes per order.
2. Creating more welcoming, community-driven store environments.
3. Streamlining the menu to boost efficiency and customer satisfaction.

More Executive Departures in the Pipeline

Alongside these changes, Starbucks’ chief supply officer, Arthur Valdez, announced his departure. Valdez joined Starbucks in 2023 after a long tenure at Target. Niccol confirmed that a replacement has already been selected, with an announcement expected in the coming weeks.

Earnings Report and Industry Expectations

Starbucks is set to release its fiscal first-quarter earnings after the bell on Tuesday. Analysts predict another challenging quarter, with same-store sales expected to decline for the fourth consecutive period. Rising competition and shifting consumer habits in key markets like the U.S. and China have impacted Starbucks’ performance, but Niccol’s leadership shake-up signals a renewed focus on operational excellence and long-term growth.

This leadership overhaul comes at a critical moment as Starbucks navigates industry challenges and strives to reestablish its foothold in the global coffee market.