In what promises to be a busy week for Starbucks ahead of its Tuesday earnings, the brand followed up Monday news of in-store changes with some leadership appointments.
CEO Brian Niccol, in a published letter, noted the chain would need a new operating model for its retail team “with clear ownership and accountability and an appropriate scope for each role” as it amplifies its “Back to Starbucks” plan. Included will be the departure of Sara Trilling, the company’s EVP and president of North America, and Arthur Valdez, EVP and chief supply and customer solutions officer.
Niccol said he discussed with each what the new model means for their existing roles, and they made the decision to leave Starbucks based on impending changes.
In tandem, he announced three new leaders joining the company to take on the following jobs in Starbucks’ refreshed approach.
Mike Grams, a Yum! Brands and Taco Bell vet (more than three decades), who for the past five years served as president and global chief operating officer, is stepping into the position of EVP, North America chief stores officer. Meredith Sandland, the CEO of Empower Delivery, whose roots also trace to Taco Bell when she was the CDO from 2013–2017, will take on the position of EVP, chief store development officer. Sandland also served as COO of Kitchen United and consulted at Bain & Company and is a co-author of the popular industry book series “Delivering the Digital Restaurant.”
Niccol was Taco Bell’s CEO from 2015 to 2018 before he left for Chipotle, and president from 2013–2014.
Additionally, Starbucks said it’s identified a new EVP, chief supply chain officer to replace Valdez, who will be announced “in the coming weeks.”
Niccol provided context on the new operating model and what Grams and Sandland will be tasked with at Starbucks. The North America chief stores officer (Grams) will be responsible for retail teams, store performance, and “everything that happens in them.” Starbucks’ customer solutions group will move to this team.
Sandland’s chief store development officer post will be charged with directing Starbucks’ store development strategy and design, including leadership of a center of practice across the company’s global design community—“all intended to deliver the community coffeehouses our customers and partners expect,” Niccol wrote.
Trilling, who has been with Starbucks since 2002 and served as SVP and president of Starbucks Asian Pacific before her North America title, was leading the growth plans and support of more than 240,000 employees across the U.S. and Canada in 18,000-plus stores and Siren Retail. Starbucks is splitting the role in two (into the jobs listed above). Niccol said Trilling agreed with the decision, but neither newly created position was right for her. “Sara has been with Starbucks for over 20 years. Before her current role leading North America, Sara held leadership roles across the company and around the world. In every role, she’s demonstrated the best of Starbucks with a relentless focus on team, mission and impact,” he said.
Valdez, Niccol added, believed integrating the customer solutions team with the stores unit was the correct shift as well. “This change will drive clarity and accountability for how we set our partners up for success in our stores,” Niccol wrote. “With this change in scope, Arthur decided it was time to hand things over to a supply chain new leader. Since he joined Starbucks in 2023, Arthur has championed transformation and innovation across our supply chain and in how we deliver the tools and equipment our store teams need to serve customers.”
Trilling and Valdez will assist with the transition over the next few months.
As mentioned, Starbucks has a host of evolution on deck for this week. It announced Monday in an email some parts of its transformation plan were now live in U.S. and Canada corporate stores. Guests who order a beverage “for here” will now be served a coffee mug, glass, or in the customers’ personal cup. Customers may also receive free refills of hot brewed or iced coffee, or hot or iced tea. Starbucks has also officially brought back the condiment bar, including the return of creamer, milk, and several sweeteners. It signaled the start of a new coffeehouse code of conduct policy, as well. Most notably, the dining room, patios, and bathrooms are for paying customers only.
Niccol’s “Back to Starbucks” strategy also centers on four-minute wait times, adding staffing in thousands of shops, and writing order names on cups. The brand has already removed the upcharge for non-dairy milk and pivoted away from price-pointed discounting in favor of focusing on the value of its story and coffee leadership.
Starbucks revealed earlier this month that it will lay off some corporate employees to remove complexities and redundancies throughout the organization.
More details will be forthcoming when Starbucks reports Q1 2025 earnings after the bell on Tuesday.
North America and U.S. same-store sales declined 6 percent during the chain’s fiscal fourth quarter. The comp was dragged by a 10 percent plunge in comparable transactions (traffic), partially offset by a 4 percent lift in average ticket. Traffic declined across all channels and dayparts.
