Friend turned direct report is not taking me seriously

Same as above, I have moved to a manager role and one of my close friends is now reporting to me. His work is excellent is but there are conduct issues like not showing up for the daily standup, taking a lot of breaks in office, starting late in the noon on work while shift starts early in the morning. Not taking accountability of the adhoc work.

I have been giving direct feedbacks recently in person but we have the daily standup with my manager where he asks for the feedback for everyone. Should I let him know or try to tackle it on in person basis. I believe they think that since they are the top performer they should get a free pass and leverage in other aspects but that is unfair to the other direct reports under me.

How can I handle this without being rude?