Starbucks promoted Mike Grams to chief operating officer and the company’s chief legal officer is departing amid a wave of organizational changes announced on Wednesday, according to a federal securities filing.
The changes are designed to “bring teams closer together, strengthen leadership accountability and allow teams to move with even greater clarity and urgency,” CEO Brian Niccol said in a system message.
The changes follow continued weakness at the Seattle-based coffee giant, including a 2% decline in U.S. same-store sales last quarter, the fifth such decline.
“Our performance isn’t yet where we want it to be,” Niccol said. “We’re making the changes necessary to get back to Starbucks, and I’m encouraged by our progress.
“We’re on the right path, but we need to move faster.”
Brad Lerman, who was named chief legal officer in 2023, is leaving the Seattle-based coffee shop giant “in the coming months,” CEO Brian Niccol said in a message to the company on Wednesday. Starbucks is starting a search for a new chief legal officer.
Grams, meanwhile, was promoted from North America chief coffeehouse officer, a position he took only in February, to global chief operating officer. He will oversee global coffeehouse development and global supply chain.
As part of the promotion, his base salary will increase to $900,000 per year from $700,000 and he will be eligible for an incentive bonus equal to 125% of his salary, up from 100%, according to a federal securities filing.
Meredith Sandland, EVP and chief development officer, and Sanjay Shah, EVP and chief supply chain officer, will both report to Grams.
“I’m excited to see these functions together and see the impact of Meredith, Sanjay and Mike working closer together to elevate the design, build and operations of our coffeehouses and to deliver a world-class supply chain that empowers our green apron partners and delights our customers,” Niccol said.
Starbucks also said that it is bringing together its Global Coffee and Sustainability and Global Brand teams together to “further cement coffee at the core of our menu, product innovation and marketing” and “further embed sustainability in our products, packaging and operations.”
Michelle Burns, EVP of global coffee and sustainability, will report to Chief Brand Officer Tressie Lieberman.
Deb Hall Lefevre, chief technology officer, will report to Chief Financial Officer Cathy Smith. “Delivering world-class technology that enables our partners to craft high-quality beverages and spend more meaningful time with customers is a priority,” Niccol said. “It’s an important area of investment and I know that working together Deb and Cathy will help us accelerate this work.”
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