Why buying Chipotle would be a mistake for Starbucks, even with Brian Niccol in charge
Source: Fortune ·
Starbucks needs Niccol’s focus, not a struggling burrito chain.
From the source
If Starbucks bought Chipotle Mexican Grill, a possibility the Financial Times reported this week was being explored by the coffee giant, it would be the largest purchase of one restaurant chain by another ever in the U.S. It would also almost certainly be one of the biggest missteps, given the limited synergies between the two brands, the size of the deal and the potential distraction as Starbucks’ brass works on its turnaround. Chipotle investors initially reacted well to the report, with shares rising as much as 8% on Thursday after the report was published. They are now back down to roughly where they were before the article. It’s easy to understand their enthusiasm: Starbucks’ Brian Niccol is the star CEO who knows Chipotle intimately after turning it around in his six years leading the burrito chain, before leaving in 2024 to fix Starbucks. On his watch, Niccol led Chipotle out of a food safety crisis, improved its restaurants and operations, built a leading app, and ultimately…