Dive Brief:
- Starbucks’ announced Tuesday that Sara Trilling, executive vice president and president of Starbucks North America, and Arthur Valdez, chief of customer solutions and supply chain, are leaving the company. They will be replaced in February by Taco Bell vets Mike Grams and Meredith Sandland, who will divide Trilling and Valdez’s responsibilities as part of a new corporate structure.
- Trilling’s responsibilities will be split between Grams as EVP, North America chief stores officer and Sandland as chief store development officer. Grams will also take on the customer solutions division currently overseen by Valdez. Starbucks will announce Valdez’s replacement for his supply chain responsibilities in March.
- The first months of Brian Niccol’s tenure as Starbucks CEO have seen significant changes to the company’s executive leadership, brand positioning and structure, with corporate layoffs expected in March.
Dive Insight:
So far, Niccol has overseen the elimination of Starbucks’ North America CEO role; changes in the internal structure of its support systems — likely resulting in job cuts; changes to its code of conduct; and the departure of longtime board member Mellody Hobson. At the store level, the chain has resurrected its coffee condiments bar and in-store ceramic mugs, and reversed its open door policy.
The changes to the company’s strategy and leadership were precipitated by a profound brand crisis that developed over the course of 2023 and 2024, culminating in a loss of 10% of its North American comparable year-over-year traffic in Q4 of FY2024.
In a statement announcing Trilling’s departure, Niccol said he had discussed splitting Trilling’s responsibilities in two, and that she concluded “neither new role was right for her.”
Valdez also agreed to leave the company given the changes to the scope of his role, according to the announcement.
Grams, as North American store chief, will be responsible for “retail teams, store performance and everything that happens in them.”
Grams spent more than 30 years at Taco Bell and Yum Brands, according to his LinkedIn profile, including five years as president and global chief operating officer for the chain. Sandland also worked at Taco Bell, from 2011 to 2017, including several years as chief development officer according to her LinkedIn profile, before a stint as chief operating officer at Kitchen United and two-and-a-half years as CEO of Empower Delivery.
Sandland will be tasked with leading “development strategy and store design, including leadership of a center of practice across our global Design community, all intended to deliver the community coffeehouses our customers and partners expect,” according to the release.
The appointment of Taco Bell vets to lead Starbucks’ North American operations could signal that Niccol intends for the coffee giant to mimic some of Taco Bell’s high-powered marketing and Yum’s focus on technological solutions for operational problems. Taco Bell has been a consistent winner in the QSR sector over the last couple years, with a savvy mix of premium and value meals and a strong digital presence. Both Grams and Sandland worked at Taco Bell during Niccol’s tenure as CEO of that brand, before his reign at Chipotle.
Trilling will remain with the company for some time to assist in the transition to the new leadership structure, according to a company spokesperson.
