Starbucks has appointed Brian Niccol as chairman and CEO, effective September 9, a move which according to an analyst, reflects the growing dissatisfaction from activist investors over the coffee chain’s operations.

Niccol will succeed Laxman Narasimhan who has stepped down as CEO and board member, effective immediately after just 16 months in the role.

Until September 9, the company’s CFO Rachel Ruggeri will take the role of interim CEO. Starbucks has also designated board chair Mellody Hobson as lead independent director.

“There is a sense that Starbucks has been on the back foot for too long and that it has lost sight of the basics. This has led to a poor performance, particularly in the US,” said Neil Saunders, MD of GlobalData.

“Niccol’s deep foodservice experience will be useful as Starbucks navigates a cocktail of challenges including increased costs, labor issues, operational inefficiency, and a growing dissatisfaction among customers.”

Saunders, however, noted that due to the scale of challenges, the leadership changes are not expected to translate into immediate results on the operations.

“His phenomenal career speaks for itself. Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth,” said Hobson.

“Our board believes he will be a transformative leader for our company, our people, and everyone we serve around the world.”

Niccol currently serves as CEO of Chipotle Mexican Grill, a position he has held since 2018.

Prior to that, he served as CEO of Taco Bell. He also served as president of Taco Bell and GM of Pizza Hut USA, both under Yum! Brands.