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To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. When Brian Niccol joined Starbucks as CEO in September 2024, the coffee chain was flailing against steep declines in traffic and sales. Niccol quickly got to work, creating a Back to Starbucks plan to entice lapsed customers back and optimize cafe operations.This wasn’t the first time Niccol overhauled a struggling restaurant chain. Niccol honed his turnaround skills at Chipotle in 2018, where he was brought on after several high-profile food safety incidents that gutted traffic. Within a year at Chipotle, Niccol rolled out stores with “Chipotlane” mobile pickup lanes, which now make up about 80% of new development and pull 15% higher sales than traditional Chipotle units.Could Niccol’s touch also turn Starbucks to gold? Maybe. A big part of a brand turnaround’s success is finding the ideal CEO, experts said. Boards should look for an executive who can develop a clear strategy to bring order to a company’s chaos, said Chad Hesters, CEO of global executive search firm Boyden.“Turnarounds are difficult because, very typically, a CEO will take that job and have to be painting the plane while they’re flying it,” Hesters said. “That’s an incredibly stressful situation for boards, CEOs and management teams.”Several restaurant chains, like Potbelly and Chili’s, have recently undergone successful brand transformations, with BJ’s Restaurants seeing early successes with its own strategic shifts. Many more, like Red Robin, Papa Johns and El Pollo Loco, are in the midst of their own strategic shifts.No turnaround is exactly the same, but successful brand transformations share core tenants to better deliver on diner, and in some cases shareholder, expectations.Some companies have brought in industry outsiders during turnarounds to offer new perspectives. But executives with little industry knowledge face steep learning curves, which can undermine transformation strategies.Laxman Narasimhan, for example, had no restaurant experience when he became CEO at Starbucks in 2023, after working at consumer health company Reckitt Benckiser Group. He lasted about a year and a half before Starbucks replaced him with Niccol following investor dissatisfaction.“Having to get up that learning curve while you’re in the middle of a street fight, which is what a turnaround feels like … that learning curve is too steep,” Hesters said. “That’s the reason you see a lot of those outside the industry CEOs maybe not be successful. … If you get too far afield, the curve may be too steep for success.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,688.46 +27.25 (+0.41%)Dow 3046,397.89 +81.82 (+0.18%)Nasdaq22,660.01 +68.86 (+0.30%)Russell 20002,433.64 -1.61 (-0.07%)VIX16.06 -0.06 (-0.37%)Gold3,887.70 +32.50 (+0.84%)PortfolioSign in to access your portfolioSign inTop gainersWOLF Wolfspeed, Inc. 28.95 +6.85 (+31.00%)UNFI United Natural Foods, Inc. 37.64 +5.88 (+18.53%)SMTC Semtech Corporation 71.45 +9.47 (+15.28%)BE Bloom Energy Corporation 84.64 +11.04 (+15.00%)CRWV CoreWeave, Inc. 136.85 +14.33 (+11.70%)Top losersMENS Jyong Biotech Ltd. 39.38 -10.62 (-21.24%)FLY Firefly Aerospace Inc. 29.32 -7.64 (-20.67%)DOCU DocuSign, Inc. 72.09 -10.05 (-12.24%)KVYO Klaviyo, Inc. 27.67 -3.82 (-12.13%)BRZE Braze, Inc. 28.44 -3.78 (-11.73%)Most activeSNAP Snap Inc. 7.72 -0.68 (-8.10%)NVDA NVIDIA Corporation 186.58 +4.70 (+2.58%)OPEN Opendoor Technologies Inc. 7.97 -0.23 (-2.80%)PFE Pfizer Inc. 25.48 +1.62 (+6.81%)INTC Intel Corporation 33.55 -0.92 (-2.67%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersPFE Pfizer Inc. 25.48 +1.62 (+6.81%)CRWV CoreWeave, Inc. 136.85 +14.33 (+11.70%)LLY Eli Lilly and Company 762.59 +36.08 (+4.97%)DKNG DraftKings Inc. 37.40 -4.90 (-11.59%)NVDA NVIDIA Corporation 186.58 +4.70 (+2.58%)Top economic events