The Niccol Effect has Starbucks (NYSE: SBUX) barreling toward fresh highs, and this is only the beginning. The Niccol Effect is the impact Brian Niccol has on the business he operates. Using Chipotle Mexican Grill (NYSE: CMG) as the primary example, he turned that struggling chain into a fast-casual superstar on track for widespread global expansion. Critical details from his six-year tenure include a reinvigorated culture, rationalizing the growth strategy, and unleashing unit throughput and efficiency. Most importantly, he established CMG as a digital-first leader.
The digital-first attitude spans all aspects of Chipotle’s and now Starbucks’ operating environment. Not only were digital transformations seen in back-end operations, but also all the way through to the consumer. The combinations of Chipotlanes, which only work via app, and the digital-first approach were central to organic growth and margin strength, a focus now and one that’s showing results.
