Starbucks announces stock split, outlines delivery plans, talks race relations
Seattle -- Starbucks Corp. stirred up controversy even as it excited shareholders at the company’s annual meeting on Wednesday.
The coffee giant announced a two-for-one stock split (its sixth to date), which entitles each shareholder as of March 30 to one additional share for every share held. It also announced details of its new coffee delivery pilots. But the biggest headlines had to do with the company’s venturing into the nation’s debate about race relations, with founder and CEO Howard Schultz announcing that Starbucks and USA Today will jointly publish national inserts called “Race Together,” and launch a digital hub at racetogether.usatoday.com, which will all serve as “learning tools and conversation starters for Starbucks customers, partners and the nation to encourage a greater understanding, empathy, and compassion toward one another.”
More than two million of these inserts will be available across the country in USA Today newspapers, and special standalone "Race Together" inserts will also be available in Starbucks company-operated stores beginning on March 20.
“Doing what is right for society and what is right for business cannot be mutually exclusive endeavors,” said Schultz. “Today more than ever, companies such as Starbucks must use their resources to create opportunities for their people as well as for the communities they serve. “Last year on this very stage, I posed the question: ‘What is the role and responsibility of a for-profit, public company in today’s society?’ This year, I hope that we have answered that question and showcased how Starbucks can truly use our scale for good and play a role in changing the narrative and national conversation to create opportunities for all.”
In other announcements at the meeting:
• Starbucks unveiled two delivery models including, a test collaboration with Postmates, a leading on-demand delivery service, which will allow customers to order their food and beverage items via the Starbucks mobile app and receive on-demand delivery within defined areas. The delivery pilot will begin in Seattle in the second half of 2015.
In its second delivery model, Starbucks will offer a “Green Apron” barista delivery option enabling customers within specified office-buildings to order food and beverages for delivery by Starbucks baristas. The test will begin in New York the second half of 2015.
• Starbucks said it remains on track for a full national roll-out in 2015 of its mobile ordering feature, which is integrated into Starbucks’ mobile app and the company’s loyalty program. The feature officially launched in the Pacific Northwest this week. This expansion will also lay the groundwork for Starbucks to begin testing various food and beverage delivery options in the coming year.
• The company committed to hiring at least 10,000 over the next three years where Starbucks as it looks to focus on creating new career opportunities for young adults.
News of Starbucks’ decision to wade into the conversation about race relations surfaced before the meeting and created a firestorm on social media, much of it negative. But Schultz was reported undeterred.
“We knew it wouldn't be easy — and we knew there would be criticism," said company spokeswoman Linda Mills in a USA Today report. "But the conversation on race and America is too important. We can't just be silent bystanders. We, as a company, have never stayed silent before."