©Maria Kray via Canva.com
Starbucks Plans To Have 55,000 Global Stores in Total by 2030
November 3, 2023
Starbucks has recently shared its plans for an ambitious global expansion that also aims to save the company costs.
Starbucks’ CEO, Laxman Narasimhan, declared the coffee giant’s intention to grow its international presence to 55,000 store locations by the end of 2030. The expansion strategy was revealed during the company’s 2023 “Reinvention Update and Holiday Launch” conference held this Thursday. Starbucks is no stranger to bold moves, and this plan solidifies its commitment to broadening its global impact.
The coffee powerhouse aims to establish itself in 35,000 locations outside of North America by the end of 2030, marking an addition of nearly 15,000 stores to its existing 20,200 international outlets as of Oct. 1.
“Three out of every four new stores over the near term is expected to be opened outside of the U.S. as our store portfolio becomes increasingly global.”
Michael Conway, president of Starbucks’ international and channel development divisions, via CNBC
In addition to this, Narasimhan outlined a strategy focused on financial efficiency, aiming to save more than $3 billion over the upcoming three years. This targeted cost-saving plan underscores the company’s pledge to further streamline its operations, enhancing profitability and shareholder value.
As the final part of its plan, Starbucks also declared a “Triple Shot Reinvention Strategy” that will substantially increase the hourly wages of its baristas. The goal is to double their fiscal 2020 earnings by the end of fiscal 2025. The wage increase will be achieved through a combination of higher pay rates and increased working hours. Further details about this plan are set to be disclosed next week.
This announcement comes on the heels of unionization efforts at over 350 Starbucks locations, as recorded by the National Labor Relations Board (NLRB). Despite these stores banding together under Workers United, Starbucks and the union have yet to finalize a collective bargaining agreement at any of the locations.
Both the union and the NLRB have accused Starbucks of violating federal labor law, citing instances such as alleged unlawful withholding of wage increases at unionized stores. Starbucks, however, has categorically denied all allegations related to union busting.
Starbucks Excels in Fiscal Sales Growth Results
Starbucks shared impressive fiscal fourth-quarter results on Thursday, outperforming Wall Street’s projections for both quarterly earnings and revenue. This led to a significant rise in stocks by 9.5%, effectively reversing earlier losses this year and boosting the company’s market cap to $115 billion.
The company’s “reinvention” initiative, introduced by former CEO Howard Schultz and currently under execution by Narasimhan, is reportedly progressing ahead of schedule. The plan largely focuses on simplifying operations and improving service speed and quality. Innovations include new coffee-making equipment, changes in store formats, and increased automation.
These developments are designed to address recent challenges, such as complex drink orders, increased use of the mobile app and drive-thru lanes, and the associated customer expectation for faster service. A new single-cup drip coffee brewer, part of this initiative, is now installed in over 600 Starbucks locations.
Starbucks also shared a fiscal 2024 sales growth forecast of 5% to 7%, slightly lower than last September’s projection range of 7% to 9%. However, all other fiscal targets for the upcoming year align with the previously announced plan.
Recent News
Media Giants Depend on Sports As Content Shortages Rise
As Hollywood emerges from last year’s strikes, major media companies are turning to live sports to attract audiences and advertisers. This trend was evident during this year’s Upfront presentations, where media giants showcased their upcoming content and advertising opportunities.
New Trader Joe’s Opens in SF After 10 Years
San Francisco’s Hayes Valley neighborhood welcomed a highly anticipated new addition on May 17, 2024, with the grand opening of a Trader Joe’s at 555 Fulton St., on the corner of Laguna Street. This event marks the end of a decade-long wait for residents who have been eagerly looking forward to a new grocery store in their area.
China’s Property Market Boost: Stocks Surge, Copper Hits Highs
The Chinese government unveiled a comprehensive support package that has sent ripples through financial markets. This initiative includes a slew of measures aimed at stimulating housing demand and addressing the excess inventory burdening developers. The immediate impact was a significant rally in Chinese stocks and a surge in commodity prices, notably copper, which hit record highs.
Mercedes-Benz Workers in Alabama Reject Union
In a pivotal moment for autoworkers in the southern United States, employees at a Mercedes-Benz plant in Alabama have voted against joining the United Auto Workers (UAW) union. The outcome, with 56% of workers voting against unionization and 44% in favor, comes as a significant setback for the UAW’s efforts to expand its influence in the region.