Being the CEO of a major company can put you on a pedestal where the rank and file feel uncomfortable giving you feedback and ideas that would move the company forward faster. Plus, there is the relentless pressure of hitting quarterly performance targets. It can leave you feeling isolated. The CEOs of Starbucks (NASDAQ: SBUX) and Chipotle (NYSE: CMG) have taken a novel approach to this problem: they've become workout buddies.
Fortune reports that Starbucks CEO Brian Niccol and his counterpart at Chipotle, Scott Boatwright, have been meeting at 5 a.m. for workout sessions at their local gym. These workout sessions also lead to a lot of strategizing about improving their respective businesses. On the surface, it may seem like an unlikely friendship. Although Starbucks and Chipotle sell different products, they compete for the same consumer dollars.
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Fortune says their friendship dates to 2018, when Niccol was Chipotle’s CEO and Boatright served as chief operating officer. "Brian and I made a great tag team because I was effectively running the business," Boatwright told Fortune. "I think I ran a pretty good business, and I know that Brian really managed a great stock."
The two worked very closely together in the C-suite until Niccol was chosen to take over as CEO of Starbucks, which led to Boatwright replacing him at Chipotle. Being promoted to CEO was a significant step up from Boatwright's previous role as COO, and Niccol had some succinct advice for his successor. Boatwright told Fortune that Niccol's counsel amounted to four simple words: "Don't screw it up."
Despite no longer working together at Chipotle, Boatwright and Niccol's relationship continued because they lived near each other. The two men would continue their relationship during 5 a.m. workout sessions at the same gym. It's a friendship that has proven to be mutually beneficial because Boatwright and Niccol have more in common than the fact that they are chief executive officers.
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Although casual observers might assume that Starbucks and Chipotle are successful, their stockholders would beg to differ. Widespread consumer anxiety about the economy has led to consumers tightening their belts, and dining out is one of the first places Americans look to cut back when that happens. That has hurt the bottom line at Chipotle and Starbucks.
Starbucks’ Q2 fiscal 2025 earnings report was largely considered to be a disappointment. Earnings were down by 50% compared to the previous year, and same-store sales dropped for the fifth consecutive quarter. Adjusted earnings plummeted by 40% to $0.41 per share. The outlook for Chipotle is also challenging. Its Q1 2025 earnings report revealed that revenue missed analyst expectations, and same-store sales declined for the first time since 2020.
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That means Boatwright and Niccol are leading turnarounds at their respective companies. This reality adds another layer of pressure to their already stressful jobs. Ironically, that makes Boatwright and Niccol's workout partnership even more valuable. Being able to exchange ideas with a contemporary in a neutral setting has proven very beneficial.
According to Fortune, the two discuss everything from AI to Chipotle's conversion to using automation to make guacamole as a cost-cutting measure. They share a unique bond, and it seems to get deeper with every workout. Starbucks and Chipotle shareholders certainly hope their friendship will have an equally beneficial effect on the bottom line.
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