June 4 (Reuters) - Starbucks ( SBUX ) on Wednesday
promoted its North America chief coffeehouse officer Mike Grams
to chief operating officer as part of a leadership reshuffle
aimed at boosting performance.
This is the latest in a series of moves from CEO Brian
Niccol, who took over the
top job
last year and has said he wants to return Starbucks ( SBUX ) to its
coffee house roots.
Niccol has promised a simpler menu and Starbucks ( SBUX ) cafes
going back to ceramic cups, offering refills and condiment bars,
while also reducing wait times to under four minutes. He has
also cut back on the company's deals and discounts, seeking
instead to broaden its marketing beyond loyalty program members.
"... our performance isn't yet where we want it to be,"
Niccol said in a statement on Wednesday, adding, "We're making
additional organizational changes to help bring teams closer
together, strengthen leadership accountability, and allow teams
to move with even greater clarity and urgency."
In April, the coffee giant reported disappointing global
comparable sales and profit for the second quarter, as inflation
and economic uncertainty increased costs and dampened U.S.
demand.
The company hired a new finance boss in March, tapping
retail industry veteran Cathy Smith for the role. This followed
an announcement in January that Starbucks' ( SBUX ) North America
president Sara Trilling and chief supply chain officer Arthur
Valdez would leave.
Trilling's role was then split, and Grams had assumed
the position of chief coffeehouse officer. In addition to
leading the company's cafes in North America, Grams will now
oversee global coffeehouse development and supply chain
operations, Niccol said in the statement.
Grams and Niccol are both former Taco Bell executives.
Starbucks ( SBUX ) said Grams' base salary will now be $900,000 per
year, up from $700,000 per year. His annual incentive bonus
target has been increased to 125% of his base salary from 100%.