The coffee shop giant is making its second executive change since the arrival of new CEO Brian Niccol. Belinda Wong, who had been co-CEO along with Liu, will remain as the market’s chairwoman.

Starbucks is making another major change in its c-suite, naming Molly Liu the sole CEO of its China operations.

Belinda Wong, who had been co-CEO along with Liu for the past year, will remain as chairwoman of the market.

The move is the second change in the c-suite since Brian Niccol took over as CEO earlier this month. Michael Conway, who had been CEO of Starbucks North America, announced his retirement last week.

Another move is imminent: Starbucks is planning to hire a global chief brand officer.

The China move will be closely watched given the market’s challenges of late. Starbucks has 7,300 locations there, making it the company’s second-biggest market after the U.S.

But the company’s sales have struggled there this year amid economic weakness in China and rapid growth of some locally-owned competitors that have flooded the market with a lot of stores and a bunch of cheap coffee.

Before Niccol’s hiring Starbucks said it was examining its options for the market, which could include a spinoff in some form.

Niccol in his early plan for the company said his initial focus will be on the U.S. business. But on China, he said, “We need to understand the potential path to capture growth and capitalize on our strengths in this dynamic market.”

Liu was named co-CEO of Starbucks China last year. She has worked with the company for 12 years and had previously held leadership roles in the market, such as chief operating officer and vice president of digital ventures.

“Over the past year, we have significantly up-leveled our innovation engine,” Liu said in a statement. “Our operational muscle has never been stronger, our brand power remains second to none and partner retention is at an all-time high.”

Wong is a 25-year employee with Starbucks and has led the market for the chain since 2011. The market’s store count has increased 15-fold since she took over market leadership. Wong “has built a strong foundation for Starbucks in China over the past 13 years,” Niccol said in a statement, where he praised her “entrepreneurial drive and passion for the brand and people.”

Source https://www.restaurantbusinessonline.com/leadership/molly-liu-named-ceo-starbucks-china