Tuesday, February 7

Here are six restaurant chains with new leaders


Restaurant CEOs are the latest wave of workers to join the Great Resignation.

In the last six months, six chief executives of publicly traded restaurant companies have announced plans to step down, either to retire or to move on to a new corporate challenge. Their announcements came after a tumultuous two years for the restaurant industry, which battled for its survival through pandemic lockdowns, worker shortages, supply chain snarls and sky-high food costs.

Privately held restaurant companies have seen a similar exodus. Chick-fil-A, Torchy’s Tacos and Red Lobster have all announced CEO changes in recent months.

“A lot of people, when the pandemic hit, had to spend more time at home with their families. My sense is for a lot of chief executive officers, it was the opposite,” said Timothy Hubbard, an assistant management professor at University of Notre Dame’s Mendoza College of Business. “They might have been at home, but their workload just went through the roof.”

While many firms have tapped company insiders to take over, others are hunting for their next chief executive even as their current one exits.

“My general sense is, just from the pandemic, succession plans have been demolished,” Hubbard said. “This is across all industries: succession planning throughout the pandemic was not a priority, and the plans that were in place didn’t seem to be very effective at all.”

In some cases, the outgoing CEO may have started considering stepping down before the pandemic or during it. For example, former Starbucks CEO Kevin Johnson said in his retirement announcement that he signaled to the company’s board roughly a year earlier that he was looking to depart.

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Of course, not all chief executives who retire stay retired. For example, Johnson’s temporary successor — and predecessor — Howard Schultz, returned earlier this month to lead Starbucks as interim CEO. After a little rest and relaxation, some of these corporate leaders could return to the game.

Here are the restaurant companies that will see CEO transitions this year:

Darden Restaurants

Darden Restaurants outgoing CEO Gene Lee

Source: Darden Restaurants

Dominos Pizza

Richard Allison, CEO of Domino’s Pizza, speaks at CNBC’s Evolve conference in Chicago on Sept. 24, 2019.

Jeff Schear | CNBC

Domino’s Pizza said in early March that CEO Ritch Allison will step down, effective May 1. Allison, 55, will serve as an advisor until his official retirement in July.

“I’m at the point in my life now where my wife and I are ready to go back home to North Carolina … and I’ll tell you that I feel really good about doing that because the company is in such a fantastic place right now,” the Charlotte native said in an interview on CNBC’s “Mad Money.”

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Russell Weiner, the company’s chief operating officer, will succeed Allison.

Denny’s

John Miller, president and chief executive officer of Denny’s Corp.

Peter Foley | Bloomberg | Getty Images

wingstop

Charles Morrison, CEO, Wingstop

Scott Mlyn | CNBC

Crazy Chicken

Former El Pollo CEO and current Zaxby’s CEO Bernard Acoca

Source: Zaxby’s

starbucks

Kevin Johnson, CEO, Starbucks

Scott Mlyn | CNBC

In March, Starbucks announced ahead of its annual shareholder meeting that Kevin Johnson, 61, would retire in early April. His retirement from him came as Starbucks faced a unionization push from its baristas, on top of the rest of the challenges the broader industry faced.

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Former CEO Howard Schultz has returned as interim chief while the board searches for a long-term candidate, although Wall Street is split on whether Schultz will stick around longer than six months.


www.cnbc.com

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