Next round of investments will lead to enhancements in partner pay, modernized training and collaboration, store innovation and a return to the celebration of coffee
With these new investments and record customer demand, Starbucks expected to deliver historic financial performance, returning to healthy long-term growth
SEATTLE--(BUSINESS WIRE)-- Starbucks Corporation (NASDAQ: SBUX) – Today, on Starbucks FY2022 Q2 Earnings call, ceo Howard Schultz announced the company will make additional investments in partners and stores for prioritized areas such as increased pay, modernized training and collaboration, store innovation, and the celebration of coffee, bringing the total investments to nearly $1 billion in this fiscal year alone. This decision enables Starbucks to meet record customer demand and partner needs in an operating environment deeply impacted by COVID.
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Starbucks announced the company will make additional investments in partners and stores for prioritized areas such as increased pay, modernized training and collaboration, store innovation, and the celebration of coffee, bringing the total investments to nearly $1 billion in fiscal year 2022 alone. (Photo: Business Wire)
On the call with investors, Schultz shared, “What you will see is the transformation of the Starbucks customer and partner experiences. The transformation will accelerate already record demand in our stores. But the investments will enable us to handle the increased demand – and deliver increased profitability - while also delivering an elevated experience to our customers and reducing strain on our partners. And we will reintroduce joy and connection back into the partner experience.”
Since his return as ceo on April 4, Schultz and other Starbucks executives have been visiting retail and roasting plant partners around the country to hear firsthand how their work and lives have been impacted over the last two years. In immersive collaboration sessions, many partners spoke bluntly of the challenges on and off the job, and the unprecedented operational and physical impacts from COVID on the partner and store experience. They offered suggestions for improvements and innovations based on their direct experience, gave feedback on investments under consideration, and voiced hope for what the Green Apron can stand for in the future.
A truly different kind of company, for partners, by partners
Schultz today announced the following investments designed to transform and elevate the experience of Starbucks partners and customers – all co-created by retail and non-retail partners working together.
In a letter to Starbucks partners earlier today, Schultz wrote, “As I shared with you last month, love and responsibility are what brought me back to Starbucks: my love of the company and my deep responsibility to our partners and shareholders. Hearing from so many of you since my return has only deepened my commitment and affirmed the need to take bold action to restore your trust and belief in Starbucks. I could not be more optimistic or confident in our next chapter that is now underway.”
Additional Investments Planned as Co-Creation Continues
As Schultz and Starbucks leaders continue to meet with and hear from partners, additional areas of investment have been prioritized for upcoming investments:
To investors on the earnings call this afternoon, Starbucks chief financial officer, Rachel Ruggeri spoke about the investment decisions, “We are confident the investments we are making in our partners, our stores and our brand, will deliver significant returns, in excess of historical levels, resulting in accelerated long-term growth.”
The company also confirmed it will move its Investor Day previously planned for December in New York to take place now in September in Seattle.
Implementation
New pay and benefits changes will apply to stores where Starbucks has the right to unilaterally make these changes. Where Starbucks lacks the right to unilaterally make these changes (for example, stores where there is a union or union organizing) Starbucks will provide wage increases that were announced in October 2021 and will otherwise comply with all applicable legal requirements.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or www.starbucks.com
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Starbucks Contact, Media: Maggie Jantzenpress@starbucks.com 206-318-7100
Source: Starbucks Corporation