Starbucks’ new CEO has an impressive resume. He’s got his work cut out for him.

On paper, Starbucks couldn’t have made a much better choice for a new CEO to fight off the problems it has on multiple fronts than Brian Niccol. Now we’ll see whether the magic Niccol worked at Chipotle was his own, or whether people just really love burritos.

Starbucks is fighting a battle on pretty much every front — activist investors are piling into the stock; the company keeps getting unsolicited feedback from three-time CEO and perpetual Starbucks sherpa Howard Schultz; it has a seemingly never-ending labor battle on its hands; and oh, right, American consumers are finally saying “uncle” to the unrelenting price increases that have pounded them since the pandemic. (A $6 cup of coffee doesn’t look that appealing in this economy.)

Niccol’s resume is impressive. Chipotle’s stock has risen more than 750% in his six-year tenure as CEO of the company, while the S&P 500 has gone up just over 90%. The entirety of his time at Chipotle was spent with a notably aggressive activist investor, William Ackman, as a big shareholder. (Ackman disclosed a nearly 10% stake in the company in 2016, Niccol joined in 2018, and Ackman to this day still holds about 2.7% of the stock, according to FactSet.)

Niccol took the reins at Chipotle when it was still in a long recovery from a serious reputational hit after the company’s food sickened hundreds of people because of recurring issues with e.coli and norovirus. As he leaves Chipotle, the biggest problem on the company’s hands is whether customers think they’re sometimes getting shafted on the amount of meat they get in their burritos.

Now, Niccol will face his toughest test yet — turning around a ubiquitous brand while dealing with aggressive investors Elliott Investment Management and Starboard Value, as well as the opinions of a guy who just can’t let go, Schultz. 

The tack Schultz takes from here out will be key: during former CEO Laxman Narasimhan’s tenure, Schultz spent time shadow-criticizing company management on LinkedIn. These quotes from him in Narasimhan’s and Niccol’s hiring announcements are telling: 

Schultz on Narasimhan: “When I learned about Laxman’s desire to relocate, it became apparent that he is the right leader to take Starbucks into its next chapter.” … “I greatly look forward to our partnership over the coming months and years.”

Schultz on Niccol: “I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support.”

First, how does it become apparent that someone should be CEO because they have a desire to relocate? Second, whether it was purposeful or not, there’s no mention of a “partnership” between Schultz and Niccol in the news release today like there was when the company announced Narasimhan.

It’s also worth noting that Narasimhan didn’t take over the company until months after his hiring announcement. (Niccol, on the other hand, starts in less than a month). When he actually took the reins, the Starbucks press release mentioned he had spent the past five months traveling the world to visit Starbucks stores, getting his barista certification, and being “immersed in the reinvention plans for the company led by Schultz.” 

Those differences make it seem like Starbucks might take the restrictor plate off and let Niccol run the company how he sees fit. Of course, not all CEOs can repeat their success at their next stop. But given Niccol’s track record at Chipotle compared with Starbucks’ lackluster performance for several years now, they’d be smart to let him try.