Starbucks is targeting 55,000 locations globally by 2030.
Starbucks Corp. unveiled an ambitious strategy for long-term growth that includes growing to a total of 55,000 locations by 2030.
As part of the coffee giant’s new “triple shot reinvention with two pumps” strategy, the company also plans to generate $3 billion in savings over three years. Of the savings, $2 billion is expected to come from outside the store through savings on its cost of goods sold. The remaining $1 billion is expected to come from making stores more efficient.
The new plan was unveiled at the company’s 2023 investor day on Thursday, the same day that it reported better-than-expected fourth-quarter earnings and sales. It builds on the reinvention strategy introduced at the company’s 2022 investor day by former CEO Howard Schultz, which involved resetting the business to elevate the in-store experience for employees and customers and making its stores more efficient.
The company, which has about 20,200 international stores, plans to expand to 35,000 locations outside of North America by 2030. In total, Starbucks has set a total of reaching 55,000 locations globally by 2030, up from its current count of approximately 38,000.
“Three out of every four new stores over the near term are 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, said during an investors day presentation.
Starbucks’ U.S. store count is slated to reach more than 16,300 – with 4% net new store growth planned for fiscal 2024 — and a goal of 20,000 over the long term. The company said it will grow its U.S. store portfolio with more “purpose-defined stores“ such as pick-up, drive-thru only, double-sided drive-thru and delivery-only as well as accelerated renovations.
“We see an opportunity to better leverage our footprint to serve the evolving needs of our customers,” said Sara Trilling, executive VP and president of Starbucks North America. “To capture that demand we will build more new stores — with new formats, in new cities and cities we’re already in. To be clear, Starbucks has not saturated the U.S. market.”
Starbucks is also raising wages. By the end of fiscal year 2025, the company expects to have doubled hourly income in the U.S. versus fiscal 2020 through more hours and higher wages.
Starbucks also announced three new technology collaborations it plans to launch to enhance its customer and employee experiences.
•A partnership with Microsoft will be extended through collaboration in its innovation lab to take product development and personalization to the next level.
•The company will collaborate with Apple products in its first “Green Apron Innovation store” to experiment and refine technology to assist partners across the globe.
•The company is reimagining the customer in-store experience with Amazon One and Just Walk Out technology.