Starbucks Revives COO Slot, Appoints Mike Grams, Shares Rise

Starbucks CEO Brian Niccol has revived the COO position, appointing Mike Grams to oversee full operations, including supply chain management. Grams' salary has increased to $900,000, and his incentive bonus target is now 125% of his salary. The move aims to speed up momentum in coffeehouses and unify teams. Starbucks stock rose fractionally after the announcement.

Starbucks Corporation (SBUX) has appointed Mike Grams as the new Chief Operating Officer (COO), a move aimed at boosting operational efficiency and speeding up momentum in its coffeehouses. Grams, who previously served as the North America chief coffeehouse officer, will oversee global coffeehouse development and supply chain operations. This appointment is part of CEO Brian Niccol's ongoing leadership reshuffle, which also includes the appointment of Cathy Smith as the new finance boss and several other organizational changes [1][2][3].

Grams, who has a background of nearly 30 years at Taco Bell Corp., will now report to Niccol. His base salary has been increased to $900,000 per year, up from $700,000, and his annual incentive bonus target has been raised to 125% of his base salary from 100% [1][2][3]. The appointment comes after a series of disappointing financial performances, including a decline in global comparable sales and profit for the second quarter, which Niccol attributed to inflation and economic uncertainty [1].

The new COO role is part of Niccol's broader strategy to return Starbucks to its coffeehouse roots, which includes simplifying the menu, reducing wait times, and enhancing customer experience. The company has also announced that heads of development and supply chain will now report to Grams, with the aim of unifying teams and strengthening accountability [3].

The appointment of Grams as COO follows a series of leadership changes within the company. In April, Starbucks reported disappointing financial results, leading to the resignation of several executives, including Sara Trilling and Arthur Valdez [1]. The company has since hired a new finance boss and brought together its global coffee and sustainability team with its global brand team to further cement coffee at the core of its operations [3].

Starbucks' stock price has shown a slight increase after the announcement of Grams' appointment, indicating investor confidence in Niccol's leadership and the company's strategic direction. However, the company will need to demonstrate tangible improvements in operational efficiency and financial performance to maintain this momentum [4].

References:
[1] https://finance.yahoo.com/news/starbucks-names-mike-grams-operating-202533912.html
[2] https://www.morningstar.com/news/dow-jones/202506048876/starbucks-names-grams-chief-operating-officer
[3] https://www.qsrmagazine.com/news/starbucks-promotes-mike-grams-to-coo/
[4] https://www.marketscreener.com/news/latest/Global-markets-live-Amazon-Apple-Microsoft-Citigroup-Dr-Martens--50169241/