In a surprising move, Michael Conway, Starbucks (NASDAQ:SBUX) CEO of North America has resigned after just six months in the role.
What happened: Conway, who took on the role in April, informed the company of his decision last week, according to a Securities and Exchange Commission filing. He will remain with the company until November 30 to assist with its leadership transition, completing his 11-year tenure at Starbucks, Business Insider reported on Tuesday.
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Prior to his role as CEO in North America, Conway served as group president of international and channel development and president of Starbucks Canada. His appointment was part of a reorganization effort by the former CEO Laxman NarasimhanBloomberg noted in March.
Instead of appointing a new CEO for North America, Starbucks announced it Sara Trillingthe company’s North American president, will oversee retail operations across the region. Trilling has been with Starbucks for 22 years and previously led 3,500 stores as senior vice president of the northern division.
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The company wants to improve decision-making efficiency by streamlining its leadership structure, The Wall Street Journal reports. Conway’s departure follows other significant leadership changes, including the recent appointment of Brian Niccolformer CEO of Chipotle, as new CEO of Starbucks.
Operational challenges have hit Starbucks’ North American stores, with complex beverage orders, rising prices and inconsistent foot traffic impacting staffing and profitability. Niccol plans to revamp its operations and focus on the customer experience, he said last week.
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Why it matters: This leadership change comes amid a series of strategic shifts at Starbucks. In March, the company announced a new geographic leadership structure to support global functions, appointing Conway as CEO of North America to lead this initiative.
The appointment followed in August Brian Niccol while the new CEO increased Starbucks’ valuation by more than $15 billion in just one day. Niccol, known for his successful stint at Chipotle, wants to guide Starbucks through the current challenges and improve the customer experience.
On his second day as CEO, Niccol outlined his vision to reconnect Starbucks with the coffeehouse’s roots in the community. He emphasized the need for comfortable seating and a clear distinction between ‘to-go’ and ‘for-here’ services to improve the in-store experience.
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This article Michael Conway, CEO of Starbucks North America, is stepping down after just six months in the role originally appeared on Benzinga.com