Restaurant companies have continued changing CEOs at a dramatic pace this month. After at least eight chief executive transitions in August, the first two-and-a-half weeks of September have seen no fewer than five major restaurant chains shuffle their top leadership. That rush of activity came on the heels of a dramatic earnings season, which saw big performance gaps between winners and losers.
Darden’s earnings call Thursday morning opened the restaurant industry’s third earnings season in 2024. The next few weeks may determine whether the sector sees a slowdown in executive transitions or another hasty burst of CEO switchups.
Many of this month’s executive changes took place at brands that have seen sales or unit volumes slip recently. Starbucks, whose executive transition was the most high profile of August’s departures, will also lose the CEO of its North America division in November. That post will dissolve, the company said, but Starbucks is now looking for a global chief brand officer in its first major C-suite shakeup under new CEO Brian Niccol. The coffee chain’s sales have declined and its brand identity has been muddled by competing pressures, so the coffee giant’s new hires face an uphill battle.
On the Border lost CEO Lyle Tick to BJ’s Restaurants, which hired Tick as its president and chief concept officer. Tick’s move came shortly after BJ’s replaced CEO Gregory Levin with board member C. Bradford Richmond on an interim basis.
Walk-On’s Sports Bistreaux named Chris Porcelli as CEO, its third chief executive since January 2023. The sports bar concept has seen its average volume dip by 8% since 2021 while growing its unit count.
But not all the CEO swaps heralded trouble. Red Lobster welcomed Damola Adamolekun as chief on Sept. 16 after a court approved a restructuring deal that included his appointment. This leadership change signaled the end of its Chapter 11 process and, according to Adamolekun, the beginning of a new era.
“Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history,” Adamolekun wrote in a press release
Whataburger’s executive change resembles a planned succession, rather than a hasty effort to stabilize a flailing brand. The burger chain reached 1,000 units in January under CEO Ed Nelson. Nelson will be succeeded by Debbie Stroud on Jan. 1, 2025.
Check out September’s chief executive changes below.
