Starbucks CEO Laxman Narasimhan will resign, with Brian Niccol, the current head of Chipotle, set to take over, as announced by the company. This leadership change comes in response to declining sales at Starbucks, attributed to rising prices and boycotts related to the ongoing israeli genocide in Gaza.

According to Starbucks board member Mellody Hobson, discussions regarding leadership changes have been ongoing for the past two months. The company reported a 3% decline in global sales for the three months ending in June. Additionally, Starbucks has faced backlash over long wait times for service and significant price increases, intensifying pressure from activist investors such as Elliott Investment Management.

Narasimhan, who succeeded Schultz as CEO in March 2023, was selected for the role in 2022. However, Schultz raised concerns about the company's direction earlier this year after disappointing sales figures. Niccol, who has successfully led Chipotle since 2018, is credited with revitalizing the brand, doubling sales, and significantly increasing the company's share price. He acknowledged the challenges ahead as he transitions to Starbucks, recognizing the complexities involved in addressing its current issues.

Starbucks previously experienced sales growth as the economy reopened post-COVID-19 lockdowns, but it has faced difficulties related to unionization efforts among its staff, which have affected its public image. The company's legal disputes with union members and its involvement in the contentious geopolitical situation in Gaza have further complicated its standing, leading to widespread calls for boycotts.

Another reason for the boycotts is that Howard Schulz, a significant shareholder of Starbucks stocks, is a staunch zionist and invests heavily in israeli companies.