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The "Either or Thinking Trap" is used to describe one of the shortcuts our brain takes when it's tired and needs to conserve resources and/or quickly make decisions under threat to our wellbeing. Daniel Kahneman writes about this in Thinking fast and Slow... Notice, when you're stressed or exhausted ... the restaurant, article or plan is EITHER amazing OR HORRIBLE? I've been thinking about this trap a lot lately. Since starting MYNDY 4+ years ago, I've had countless conversations about building businesses as a "lifestyle businesses" today or "unicorns" in a few years. It's fascinating to me though to put growth in these "either/or" terms when I think of a business like Costco: ~50 years old and crushing it. Not to mention, values-driven, wildly profitable, oh and the only brand that can delight folks with a $1.50 hotdog special... ...The best hotdogs and a drink = All for $1.50. That's ONE dollar and 50 cents....forever. People always ask me what companies inspire me given my work with company culture + productivity. Oh so many! Today - I've been thinking a lot about Costco. What company inspires you?! #costco #inspirationstation #tgim

#ZACHMultimediaGlobalCorporateInsights "Inside Starbucks’ Surprising CEO Firing and Hiring "As the coffee giant’s shares sank and activists circled, the board arranged a cold call that brought dramatic change [Image - Current Starbucks chief Laxman Narasimhan has stepped down after roughly 16 months on the job. GRANT HINDSLEY for WSJ} By Heather Haddon and Lauren Thomas, The Wall Street Journal, 14 Aug 2024 === "Laxman Narasimhan bounded onto a stage late last month at Starbucks headquarters, sporting a varsity jacket with the chain’s logo emblazoned on the white sleeve and exclaiming to the crowd about the joy he felt and signs of a turnaround. "“We have big challenges, no question, but they’re not impossible,” he told employees gathered at the July 31 company forum in Seattle, according to a replay viewed by The Wall Street Journal. On the company’s quarterly earnings call the day before, he asked investors for patience. "His days leading the coffee giant were already numbered, as the company’s board eyed his replacement. Less than two weeks later, Narasimhan was out. "Narasimhan’s exit from Starbucks, announced Tuesday, continues a turbulent period at the world’s largest coffee chain. This year Starbucks has faced two high-profile activist investors, public criticism from longtime former CEO Howard Schultz, and slowing sales. This week, it named its third CEO in less than 2½ years. "By hiring restaurant industry veteran Brian Niccol as Starbucks’s new leader, the board said Tuesday it was bringing in a steady hand. Niccol, 50 years old, who helped turn Chipotle Mexican Grill into an industry powerhouse after it was laid low by food-safety problems, said he was energized at the opportunity to spur growth at Starbucks and improve things for customers and employees. "Behind the scenes, Niccol’s appointment was the culmination of months of internal angst over Starbucks’s direction and leadership. "Investors grew increasingly skeptical about company’s ability to pull off lofty financial targets set before Narasimhan joined the company. Some employees said they read news stories about activist investors’ demands, with questions and concerns. And the company’s board, once firmly in Narasimhan’s camp, quietly discussed finding a possible replacement while he remained in charge. [Chipotle CEO Brian Niccol is set to become the boss of Starbucks in September. Photo: Rozette Rago for WSJ] "Starbucks board chairwoman Mellody Hobson said in an interview that the board had been thinking about the company’s trajectory for some time. The board didn’t have a special connection to Niccol, but focused on him as the best candidate to potentially replace Narasimhan. The board set its sights on trying to directly woo him to Starbucks, rather than using a recruiter. Hobson said she had a trusted associate make a call to Niccol..."... ... https://lnkd.in/gUEEctqa

Starbucks has made headlines with a major leadership shakeup, appointing Brian Niccol, the current CEO of Chipotle Mexican Grill, as its new CEO and executive chairman of the board. This sudden change comes as Starbucks faces increasing pressure from activist shareholders and the need to revitalize its operations amid slowing sales and operational challenges. The announcement of Niccol's appointment not only surprised the market but also delighted investors, resulting in a remarkable 25% surge in Starbucks's stock price—a gain exceeding $20 billion. Narasimhan, who took the helm just 16 months ago as the first external candidate to lead Starbucks, struggled to align with the company's culture and faced public criticism, particularly from longtime former CEO Howard Schultz. His tenure was marked by efforts to address operational inefficiencies and revitalize the brand, but these initiatives failed to gain traction. Despite his optimism and attempts to navigate a complicated environment, Narasimhan's public persona and leadership style did not resonate with Starbucks's employees or investors. This disconnect was exemplified by his widely criticized turnaround plan, "Triple Shot Reinvention With Two Pumps," which preceded one of the worst quarters in Starbucks’s history. Behind the scenes, Starbucks’s board, led by chairwoman Mellody Hobson, began to question Narasimhan’s fit for the role. In response, they undertook a proactive and discreet recruitment process, personally reaching out to Niccol, known for his success in turning around Chipotle. Hobson, along with the board, meticulously managed the entire recruitment process, ensuring that Niccol was the best candidate to steer Starbucks through its current challenges. The leadership change also reflects the growing influence of activist investors like Elliott Investment Management, who had been in discussions with Narasimhan about strategic changes, including a review of Starbucks’s China business. However, as Starbucks continued to struggle with declining same-store sales and increasing competition, especially in the Chinese market, the board decided it was time for a new direction. Niccol, who brings a strong track record of digital innovation and operational success, is seen as well-suited to address Starbucks’s challenges in both the U.S. and international markets. His appointment signals a strategic pivot for Starbucks as it seeks to regain its footing, refocus on customer experience, and continue its global expansion under the guidance of a proven industry leader. Investors, who have expressed skepticism about the company's recent performance, are likely to give Niccol more latitude as he tackles these complex issues. #StarbucksLeadership #BrianNiccol #CorporateTurnaround #InvestorRelations #BusinessStrategy #LeadershipChange #StarbucksStock #HowardSchultz #ActivistShareholders #GlobalExpansion #DigitalStrategy #CoffeeIndustry #ChinaMarket

Boston Celtics beat the Dallas Mavericks: 107 -89. What has this to do with Luckin Coffee and Starbucks. Well, Boston Celtics had a big lead (23) at half-time that was cut to 8 pts by Dallas. It looked like momentum has turned, but BC ran out winners. Luckin Coffee is back and beating Starbucks in China. They are trying to compete with Starbucks on being more targeted to the Chinese palate, and being way cheaper. "Starbucks has often shrugged off Luckin’s threat. As recently as January of this year, the US company appeared to dismiss Luckin’s low prices as a temporary phenomenon. “You see an influx of mass-market competitors focused on fast store expansion and low-price tactics to drive trial. This will shake out over time,” Belinda Wong, who oversees Starbucks in China, told analysts." And Starbucks is NOT able to come up with a competitive reaction. "Yet Starbucks has begun to struggle. For the quarter through March, sales in China sank 8% from a year earlier, compared with a 42% surge at Luckin." And they want to compete by being more Chinese in their ordering and payment. Here's what I think: Chinese Coffee Chains will beat Starbucks, but Starbucks will still be around. In other words, the biggest threat to Luckin is another Chinese coffee chain. First, there will always be a market for Starbucks - it, McD, will still be there. Two, there is always a market for good enough coffee - for a given definition of good enough. In Australia, Starbucks was not good enough. Three, Starbucks has always charged a brand premium for slightly better than good enough coffee. I think that has to change. (also the slightly better than good enough microwaveable food). That is the product. Starbucks actually has a free product - it was supposed to be your 'third place.' But that was in a pre-smartphone world, today - most of us are in our third place with a smartphone and headphones, and doom scrolling. We need not have physical stores. So if Starbucks is so bad, why would I back them to beat Luckin? I did not say that - I said that Chinese Coffee will have a turf war. And Starbucks will respond with smaller cups, but not go into the war itself. If I have an option (in SG), I prefer Paris Baguette over SB; but since I drink good enough coffee - I really don't care. (This is a personal choice thing, no one except Nescafe really benefits from my coffee drinking habits) Luckin still does not beat Kopi-O Kosong.

This famous failure led to $100 million in sales in just 10 months - and changed the way we drink coffee. Here’s the lesson to be learned: As a cell chemist, Don Valencia was an avid coffee drinker. Tired of low-quality options, he started tinkering with coffee beans 🫘 He was dead set on improving his on the go experience. Don shared it with family and friends first. Surprised by how much they loved it, he wondered who else might enjoy it. Not knowing any better - he took his coffee to the famed Starbucks at Pike Place market in Seattle. He offered it to the baristas … They all refused to drink, so he left it on the counter. He walked out confused and defeated. But curiosity got the better of the baristas. After a few sips they chased him down and less than 1 week later the CEO of Starbucks (Howard Schultz) was in Don’s kitchen. Howard practically begged Don to lead product development. And he accepted the challenge. Don moved his family to Seattle. On his journey to perfect instant coffee, he managed to create an absolute bust. We knew it as Mazagran 😵💫(left) But here’s the thing … Like Don, you’re not defined by your failures if you keep going. His curiosity and conviction lead to the release of VIA (right) and The Frappuccino. Not to mention numerous patents he was awarded. The point is, life tends to lend favor to those with curiosity, conviction, and persistence. Regardless of setbacks and rejections. And you’re bound to make mistakes so you may as well shoot your shot. For his efforts, his family and Starbucks honor his legacy. If this post was helpful, share it and follow Gabrielle Bosché for more. #purpose #success

So Laxman Narasimhan is out at Starbucks, only eighteen months after he was brought in to take the coffee chain through the next stage of its development. Eighteen months is barely enough time for a CEO to work out where the bathrooms are, let alone implement a strategy for a global leader. But Narasimhan has paid the price for activist discontent, and - let’s be honest - the dissatisfaction of former leader Howard Schultz. Shifting out the old CEO and bringing in Brian Niccol from Chipotle Mexican Grill buys the board some time. But the clock is already ticking on Niccol, and he’ll need some quick wins to keep Schultz and activists like Elliott Investment Management L.P. happy. Are we approaching a time when CEOs of public companies are treated more like professional sports coaches, jettisoned if they don’t achieve immediate results? #ceotransition #investorrelations #corporatecommunications

When going after your ambition, there are only three things that matter: ⚡️ Can people trust you? ⚡️ Can people believe you? ⚡️ Can people rely on you? When you get this right, your results are simply astonishing! This is what Chipotle Mexican Grill has done. They set a massive ambition and went after it with focus and determination and energy. Let's break it down: 1. Number one. 𝗖𝗮𝗻 𝗽𝗲𝗼𝗽𝗹𝗲 𝗧𝗥𝗨𝗦𝗧 𝘆𝗼𝘂? Trust is about character. It is about integrity. It is about doing what you say you're going to do. It is anchored in values and virtues and respect. At an aggregate level, we call this CULTURE. Workforce culture. Employee culture. No surprisingly, Brian Niccol (Chipotle's CEO) has unequivocally stated that his team's focus on Culture is a number one contributor to their success. ✪They built the culture - underscored by values and virtues - so that we would trust them. Remember, you get the culture you deserve. And you deserve what you get based on how intentional you are and how much you work at it. 2. Number two: 𝗖𝗮𝗻 𝗽𝗲𝗼𝗽𝗹𝗲 𝗕𝗘𝗟𝗜𝗘𝗩𝗘 𝘆𝗼𝘂? Think about this: What's the biggest reason why someone might NOT believe you? Because you don't follow-through. Or you make promises you can't keep. In this case, Chipotle made promises. And then they followed through on those promises and delivered. By making investments in the right places to build the CAPABILITY to deliver. ✪They built the capability to deliver so that we have to believe in them. 3. And Number three: 𝗖𝗮𝗻 𝗽𝗲𝗼𝗽𝗹𝗲 𝗥𝗘𝗟𝗬 𝗢𝗡 𝘆𝗼𝘂? This is about dependability. How you get things done. Your systems. Your structure. Does it build the ability for you to deliver - CONSISTENTLY. ✪For Chipotle, they left nothing to chance. They invested in systems and processes and structure because they know we need to rely on them to deliver consistently - whether we're in Calgary or Canary Wharf or Kansas City. It's not surprising to understand how Chipotle Mexican Grill have delivered. ⚡️ Their culture - how they do what they do, how they treat one another and how they treat customers >> means we can TRUST them. ⚡️ The choices and the investments they make - what they do and what they don't do (i.e. their 'strategy') >> means we can believe that they will follow-through. New innovative products or new enhancements to their services. ⚡️ Their systems, the training, the rigorous investment in processes >> this all leads to us knowing that we DEPEND on them to deliver CONSISTENTLY. Thanks Barron's for the insights. ~~~ I want teams to achieve the massive impact they deserve. So I wrote The Ambition Playbook™ to help leaders and teams accelerate their impact. I'm also making it available now for consultants who want to leverage The Ambition Model with their clients. 💬 If we aren't connected, please reach out and let's start a conversation.

Every morning, when I do my daily offering at the local Starbucks, I think of my grandfather. Specifically, I think of him yelling at me as I chuck over $3.50 for a simple black cup of coffee. You see, my grandfather was many things. Strong. Hardworking. Tough as nails. He was also a frugal and stubborn man of principle. The routine “walk outs” from restaurants due to poor service or food left the teenage Myers boys feeling more awkward than Mark Zuckerberg at a MMA Walk Out. For my grandfather, anything restaurant related, from price to service quality, tied back to working at his father’s diner. In economic speak, he was anchored to his first experience with a restaurant. What do I mean by anchoring? Behavioral economics tells us that not only do we need options to make decisions, we also get anchored on the first introduction of pricing, regardless of how arbitrary the price point. So just how my grandfather was anchored by his introduction to the service industry, drawing all comparison off of that experience, so too does the introduction of a price point serve to anchor a sale or negotiation. Tomorrow, with the help of a bread maker, we will dig into why it works and how we can use it to maximize a deal.

So you decided to launch a CPG brand and need to build out your entire accounting and finance team? You need bazooka-level expertise and talent —but your budget only stretches to a water gun. After a powerful EOS vision session, an inspiring YPO retreat, and an energizing in-person team gathering, I’ve never been clearer about what we’re building, how we’re building it, and why we’re building it. Our mission? To help passionate food and beverage entrepreneurs feel financially confident. Think of us as the bazooka every founder needs to bring to the CPG battlefield. (Btw, I had fun making this image in Midjourney!)