Starbucks is struggling, replacing highly-paid CEO Laxman Narasimhan with Brian Niccol from Chipotle following an intervention by founder and still influential Howard Schultz.
Increasingly accident-prone Starbucks has come under more fire as Niccol will spend much of his expensive time (he’s getting a signing-on fee of $113m) working from his southern California home. Now it’s reportedly looking for a global ad agency/network with creative and media up for grabs.
Although never historically a big advertiser Starbucks is clearly a major prize for any global holding company. WPP, Mark Penn’s Stagwell and Interpublic are reportedly in the hunt alongside existing indie agency SPCSHP.
Starbucks’ problems should be blazingly apparent to any customer: lumpy, slow service and over-priced, weak coffee. Doubtless new CEO Niccol and whichever lucky agency wins the business will find more to sink their teeth into.
