Pitfalls Transitioning from a Full-Time CEO to a Partly Present CEO

 

In the ever-evolving landscape of corporate leadership, one thing remains constant: the CEO’s presence is crucial to a company’s success. Now according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® there are serious fundamental flaws in Starbucks new leadership lineup.

Yet, with Brian Niccol’s transition from Chipotle to Starbucks, we’re witnessing a concerning trend where top executives are seemingly abandoning the tried-and-true model of full-time commitment in favor of what can only be described as a “Partly Present CEO.” Niccol’s supercommuting setup, with one foot in Newport Beach and the other in Seattle, is a recipe for disaster—and here’s why.

1. Fragmented Leadership Equals Fragmented Vision

Leadership isn’t just about making the right decisions; it’s about being there to implement them, to lead by example, and to inspire a workforce. Niccol’s plan to split his time between Seattle and Newport Beach, commuting over 1,000 miles on a corporate jet, creates a fragmented leadership approach. Starbucks, a brand already struggling with declining same-store sales and customer dissatisfaction, needs a leader who is fully embedded in its culture and operations. A partly present CEO risks missing the nuances of day-to-day operations, leading to a fragmented vision and strategy that could further destabilize the brand.

2. The Cost of Corporate Jet Setting

Let’s talk dollars and sense—or in this case, the lack thereof. Starbucks’ decision to accommodate Niccol’s bi-coastal lifestyle by providing a corporate jet for his commute isn’t just an extravagant expense—it’s a slap in the face to the company’s stakeholders. While employees are asked to adhere to hybrid work policies and show up to the office three days a week, Niccol’s arrangement reeks of double standards. At a time when Starbucks’ stock has plummeted by over 21 percent and the brand is hemorrhaging customers, how can this kind of financial irresponsibility be justified?

3. Erosion of Corporate Culture

The Starbucks culture, once a beacon of community and connection, is already in peril. With Niccol choosing to remain largely in Newport Beach, the potential erosion of the company’s culture is inevitable. Corporate culture is not something that can be maintained remotely or during brief fly-in visits. It requires a constant, on-the-ground presence. The shift to a partly present CEO could lead to a disconnection between leadership and employees, further eroding the “third place” ethos that Starbucks was once known for.

4. The Illusion of Flexibility

Niccol’s arrangement is being framed as a modern approach to leadership flexibility in a tight labor market, but let’s call it what it is: an illusion. Flexibility in leadership should be about adapting to the needs of the company, not bending the company’s operations around the personal preferences of the CEO. While the rest of the workforce grapples with the realities of hybrid work, Niccol’s flexibility is a stark contrast that could breed resentment and diminish morale within the ranks.

5. The Danger of Outsourcing Accountability

A partly present CEO inherently outsources accountability. By not being physically present, Niccol risks losing touch with the day-to-day challenges and opportunities that arise within Starbucks. Decision-making from afar, no matter how connected one might feel through digital tools, is no substitute for the boots-on-the-ground leadership that Starbucks desperately needs right now. With declining domestic traffic and shrinking transactions, Starbucks needs a leader who is not just visible, but actively engaged in turning the tide.

6. The Risk of Losing Stakeholder Trust

Trust is the currency of leadership, and Starbucks is running low. Stakeholders—be they employees, customers, or shareholders—are already wary after the turbulent tenure of Laxman Narasimhan. Niccol’s decision to prioritize personal convenience over corporate commitment could further erode trust at a time when Starbucks can least afford it. The message being sent is clear: the CEO’s personal life takes precedence over the company’s future, and that’s a perilous precedent to set.

7. The Supercommuting CEO: A Short-Term Fix, Long-Term Liability

Niccol’s impressive track record at Chipotle cannot be denied, but his success there was built on a foundation of full-time leadership and immersion in the company’s operations. His new supercommuting role at Starbucks may offer a short-term fix to the company’s leadership void, but it’s a long-term liability. The demands of a global brand like Starbucks require more than a part-time presence—they require a leader who is fully invested, both physically and mentally, in the company’s success.

Think about this, the pitfalls of transitioning from a full-time CEO to a partly present CEO are glaringly evident in Niccol’s move to Starbucks. As the Grocerant Guru®, I can tell you that in the competitive world of food and beverage, leadership isn’t just about making decisions—it’s about being there to ensure those decisions are carried out effectively. Starbucks is gambling with its future by accommodating Niccol’s bi-coastal lifestyle, and it’s a bet that could cost them dearly. The success of any company hinges on the strength and presence of its leadership, and right now, Starbucks is being led by a CEO who is only partly there.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Fast Food Index Insightful Fresh Fun Food Insights

 

While 2022 is fast coming to a close, fresh food news never stops.  Once again, we are reminded that it just might be time for some of the recycled restaurant industry CEO’s to step aside and give a new generation a chance at evolving your concept rather than recycling old ideation in an incremental so as no one is interested, all that according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. 

So, if you are paying nearly $5:59 for a McDonald's Big Mac in Tacoma, WA you could be paying $3:39 in Oklahoma. The question is do you want to live in Oklahoma? You may not but many others are more than willing to flee the high price of Seattle, San Francisco, Chicago, or New York City for a real house with land and rock solid, low cost, burger from McDonald’s. Do you work from home?  I do.

The Fast Food Index and website was developed by Riley Walz a college student. You read that right.  Not a recycled chain restaurant CEO but a college student that values a dollar.

What does it say about America that a college student is behind a website that has provided some fascinating insight into the wide range of prices at fast-food chains. A young industry outsider understood that key primary products from four national chains: McDonald’s Big Mac, Chick-fil-A’s Chicken Sandwich, Taco Bell’s hard-shell taco and Chipotle’s chicken burrito could tell everyone a lot about America.

So as Johnathan Maze wrote, “Walz is a 20-year-old business student who describes himself as a “self-taught engineer.” And he has developed a habit of pursuing what he calls “shenanigans.” For instance, in 2020, as a high-school student, he created a fake congressional candidate who would then be verified by Twitter, leading to changes in the social media site’s verification policies.

In this instance, Walz’s work delves into the surprising world of fast-food prices.

Major chains are built for consistency. So, a Big Mac is the same in Washington State as it is in Florida and as it is in Texas. But costs in those locations vary, particularly for labor. So McDonald’s franchisees, who have power to control their local prices, will set prices accordingly. That results in substantial differences from one region to the other.

The lowest price for that sandwich ranged from $3.39 to $7.89. On average, the price of a Big Mac is $5.05.

Walz did not know this (what college student would?) until he ordered a burrito at a friend’s apartment at Columbia University. It cost 15 cents more than the burrito he typically buys in New York’s Upper East Side.

“I wanted to see what these trends were like across the country,” Walz said in an interview conducted over email, rather than via what us old people call a “phone.” “I figured if I was interested in seeing the data, other people might be, too.”

Uh, yes. Restaurant chains have wanted for years to get at competitive pricing data by city and state.

In the old days, you’d have to call individual restaurants to get at this data, which made it cumbersome and quite expensive. But in more recent years, the advent of digital ordering made it possible to see prices all over the country. Last year, for instance, I was able to craft this story on Big Mac pricing by using McDonald’s app to search for prices in different locations across the country. But I am not a self-taught engineer and it took me forever.

Walz said he selected these four restaurants because they are well-known and everywhere. He tried to get Subway and Starbucks, but their respective apps made the process more difficult.

“The items I picked at the four chains are the most classic, most basic items (in my mind, at least) at each chain,” he said. “A Big Mac is the gold standard, the must-have item at every McDonald’s. The same is true for the simple, plain, crunchy taco at Taco Bell.”

He then reverse-engineered each chain’s mobile app to figure out how to get data for prices, then made thousands of requests through the app to place an order for each of the items at each of the chains’ various locations.

We were able to confirm some of the prices, but not all of them.

In looking at the data, it appears that franchises have greater variations than corporate chains. The price for the Crunchy Taco at Taco Bell was more than triple in the highest-priced city, in California, than in the lowest-priced cities (Mississippi and Texas).

The range for McDonald’s Big Mac is 133%. But for Chick-fil-A, the range is 70% at $3.69 to $6.29. For Chipotle it’s just 41%, $7.85 to $11.10.

Regardless, the site gives customers—not to mention the chains themselves—the opportunity to see just how much prices vary from one place to another.” Thanks to the Fast Food Maven and J Maze for sharing a view from a college student.

Is your brand ready for some outside eyes?  Are you still recycling last year’s ideations with whose of ten years ago?  Does your brand look more like 1999, 2009, or 2019?

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter