Brian Niccol On Starbucks' Food Ambitions, Weeks Before Chipotle Takeover Speculation

Before reports began to surface that Starbucks had explored a Chipotle takeover, CEO Brian Niccol was candid with ADWEEK about where the coffee chain still has work to do: its afternoon food selection. Speaking to ADWEEK on Sept. 17 for its October cover story, Niccol did not discuss Chipotle or any potential acquisitions, but he said Starbucks was working on making its food program "category-defining." "We’re pretty darn good in the morning, but we have to be much better in the afternoon," he said. The chain is trying to build a second sales peak after 2 p.m., driven by cold drinks like Refreshers and matcha. Starbucks has reportedly worked with advisers in recent months on a takeover proposal for Chipotle, which Niccol himself ran from 2018 to 2024. First reported by the Financial Times, the plans were described as being at an early stage; it's possible a deal may never materialize. More than half of Starbucks’ U.S. sales (roughly $12 billion a year) happen before 11 a.m. Chipotle, meanwhile, splits its sales roughly evenly between lunch and dinner, CEO Scott Boatwright told investors in 2025. While buying Chipotle might not fix Starbucks' afternoon lull, it would hand the Seattle-founded chain a business that’s busiest when its own cafes are quieter. In a statement issued in response to the FT's report, a Starbucks spokesperson said that it doesn't comment on what it described as "rumors and speculation." The spokesperson stated its team was "laser-focused" on its ongoing Back to Starbucks turnaround plan. Coffee and burritos Over the past two years as Starbucks CEO, Niccol has focused on returning the brand to its roots as an inviting "third place," where people want to linger longer and spend more. He's initiated 1,500 store refurbs, a leaner menu, a revamped loyalty program, a marketing reset, and directed more than $500 million to shift scheduling and put more staff on shop floors during peak hours. As part of a $2 billion 2028 cost savings target, Starbucks closed 627 stores in 2025 and announced a further 250 closures in September, and has cut around 2,000 white-collar jobs since early 2025. Its Q3 July earnings showed comparable sales up 7.9%. Total revenue slipped 1% to $9.3 billion after Starbucks sold most of its China business, but it still raised its 2026 forecast, with Niccol stating "Starbucks is Back."Niccol told ADWEEK he wishes some elements of the strategy, including Starbucks' menu, were moving faster. "This is where you have to accept the scale of the business, which is when we want to do something, we've got to do it across 18,000 coffeehouses in the U.S." he explained. "It takes a little bit longer to scale up to that level, and I probably underestimated given just the scale of the business that Starbucks is." Combined, Starbucks and Chipotle would create a $50 billion sales behemoth, but lack some operational overlap. Chipotle largely doesn't serve breakfast or coffee, and Starbucks is focused on items like pastries, paninis, and wraps. Still, operational efficiencies are possible, David Mayer, senior partner and director of marketing and customer strategy at Lippincott, told ADWEEK, as are “cross-selling opportunities, and, longer term, the potential to add more brands to the portfolio.” A Chipotle merger could also theoretically reunite Niccol with his former employer, where he grew revenue from about $5 billion to nearly $10 billion during his six-year tenure. Chipotle shares closed up about 6% on Oct. 8 following the FT’s report. Starbucks shares fell as much as 6.7% during the day but recovered to close nearly flat.

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Brian Niccol On Starbucks' Food Ambitions, Weeks Before Chipotle Takeover Speculation

In an exclusive interview for ADWEEK's October issue, the CEO said Starbucks is 'pretty darn good' at breakfast. The afternoon is another story.

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Rebecca Stewart

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