In a letter to partners (employees), Starbucks ceo Kevin Johnson outlines further steps the company will take to advance inclusion, diversity and equity on behalf of its partners and the communities it serves.

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As we continue together on our journey to advance racial and social equity on behalf of our partners and the communities we serve, I keep coming back to three principles: intention, transparency and accountability.

That is, as we consider the role and responsibility of Starbucks, as a company, to lead by example in areas of inclusion, diversity, and equity, we will: 1) be intentional about the actions we take and how they line up with our Mission and Values, 2) commit to transparency with all stakeholders about our thinking and our goals, and 3) hold ourselves accountable.

Those are the same three principles we outlined for ourselves over two years ago in Philadelphia that led to the closing of our 8,000 company-owned stores for a day of anti-bias training. Those principles further led to our partnership with Arizona State University in developing our <a href="https://tobewelcoming.com/">To Be Welcoming</a> curriculum, to our <a href="https://stories.starbucks.com/press/2020/an-update-on-starbucks-civil-rights-assessment/">civil rights assessment</a> led by former U.S. Attorney General Eric Holder and a bold decision to make that assessment public, and our success in achieving <a href="https://stories.starbucks.com/press/2020/how-starbucks-is-addressing-the-pay-gap/">gender and race pay equity</a> in the U.S.

In the partner <a href="https://stories.starbucks.com/stories/2020/a-message-from-starbucks-ceo-to-partners-and-customers-on-civic-responsibility/">letter</a> I sent at the end of August, I outlined critical questions I believe each of us ought to be asking ourselves in this pivotal societal moment.&nbsp;

We are well underway with efforts to help answer the question about our roles and responsibilities as individuals, with action to <a href="https://stories.starbucks.com/stories/2020/fuel-our-democracy-starbucks-helps-partners-customers-prepare-to-vote/">reduce barriers to voting</a> for those who wear the green apron as well as for our customers.

Today, I’m pleased to tell you about several new actions Starbucks will be taking as we continue our journey and step up our efforts.

As we discuss inclusion, diversity and equity, we discover time and again that these topics are foundational to our Starbucks Mission and Values. Of course, they are. The very concept of the Third Place embodies inclusion – creating a place of warmth and belonging, where everyone is welcome. It’s what we mean when we talk about connecting with transparency, dignity and respect.

I believe our Mission and Values are what have made, and continue to make, Starbucks an enduring company. We share a purpose that transcends the pursuit of profit and that will carry us forward as we celebrate the 50th anniversary of Starbucks next year.&nbsp;

Advancing Starbucks Culture of Inclusion, Diversity and Equity

We know that a more inclusive environment will create a flywheel that leads to greater diversity, and thereby greater equity and opportunity for all. Greater diversity enables us to better fulfill our mission. We have already taken action on many of the recommendations that resulted from our Civil Rights Assessment but, while we have made progress in many areas, we know that there is still more work to be done.

Today, we are outlining additional actions we will take on our journey. Each of the actions lines up with our Mission and Values, and so we know they are not just fleeting initiatives, but rather woven into the fabric of Starbucks. And I ask you to be engaged in this journey, knowing this requires long-term thinking that is backed up by the daily, sustained work that we are committed to do. &nbsp;As a part of these actions:

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Supporting the resilience of the communities we serve

When we talk about using Starbucks “scale for good,” we mean that every business has the potential to promote equity in the community it serves; and since Starbucks serves more than 30,000 communities, we have the potential – and yes, responsibility – to promote equity on a larger scale than some other businesses.

I continue to be impressed and awed by the dedication and resilience of all partners who wear the green apron, especially now, when the communities we serve need the comfort, familiarity and safety that Starbucks provides. Thank you for all you do.

We have a responsibility to build bridges and create environments where all are welcome. Our journey continues as we are guided by intentionality, transparency and accountability.

In a letter to partners (employees), Starbucks ceo Kevin Johnson outlines further steps the company will take to advance inclusion, diversity and equity.

Starbucks role and responsibility in advancing racial and social equity

Stories to inspire and nurture the human spirit

Starbucks Stories

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An open letter from Starbucks Chief Sustainability Officer, Michael Kobori, shared with Starbucks partners in support of Climate Week.

We have felt the immediate impact of climate change across the world this year – from the west coast of the U.S. engulfed by fires and an apocalyptic orange sky, to the floods in Asia, and a record-breaking Atlantic storm season. Not even the northern-most point of our planet was spared, with 100-degree temperatures recorded in the Arctic. At this point, the climate crisis is not something that will happen in the future; it is upon us today.

At Starbucks, we also realize the climate crisis is inextricably intertwined with the other historic crises we are grappling with, among them: the global pandemic, a recession, and systemic racism. 

At the beginning of 2020, Starbucks announced a bold aspiration to become resource-positive, storing more carbon than we emit, providing more clean freshwater than we use, and eliminating waste. And we set targets to cut our carbon, water, and waste footprints in half by 2030.

Nine months on, sobered by what we have experienced this year, we realize we need to deepen that commitment and recognize how it is interlinked with our people-focused mission---to inspire and nurture the human spirit. We have taken the following actions:

These actions are a step in the right direction. But we all know that we need to do more and do it faster if we are to create a more sustainable, just, and prosperous world that is people and planet positive.

I look forward to your engagement and support as we address this challenge and opportunity of our lifetime.

Reaffirming Starbucks commitment to a resource-positive future - Starbucks Stories

Reaffirming Starbucks commitment to a resource-positive future

An open letter from Starbucks Chief Sustainability Officer, Michael Kobori, shared with Starbucks partners in support of Climate Week.

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Kevin Johnson unveils the voter registration initiatives Starbucks is launching to ensure partners and customers have the opportunity for their voices to be heard.

The struggle for civil rights and racial equity in America requires continuous conversations and daily work. This is especially true for a business like ours that lives its mission grounded in humanity and that touches the lives of hundreds of millions of people around the world.&nbsp;

Over the recent weeks, I, along with the entire leadership team, have revisited the <a href="https://stories.starbucks.com/uploads/2019/01/Covington-Report-to-Starbucks-Jan-23-2019.pdf">Civil Rights Assessment</a> of Starbucks that was conducted by Covington &amp; Burling, under the leadership of former U.S. Attorney General Eric Holder. That assessment, and the one-year update published <a href="https://stories.starbucks.com/press/2020/an-update-on-starbucks-civil-rights-assessment/">in February</a>, do a good job summarizing the actions Starbucks has taken to promote civil rights—for partners, for customers, and for the communities we serve. It shows the different ways that, <a href="https://stories.starbucks.com/press/2019/starbucks-equity-and-inclusion-timeline/">for years</a>, Starbucks has facilitated that conversation and engaged in the daily work.&nbsp;

However, the potency—and the potential—of this national moment highlights that, although we have made progress, there is still so much more for us to do. We approach this as a quest to stand up for racial justice and equity, create opportunity for others, and strengthen every community we serve and in which we live.

Roz and I have met with leaders of all our business resource groups and with retail leaders to reflect on our journey together, and to share and solicit ideas about how Starbucks and Starbucks partners can continue to do more. As a company, we know the benefit of being thoughtful and intentional, listening to our partners and stakeholders and making decisions that ensure our partners feel seen, heard and valued.&nbsp;That is exactly what we have been doing.

The upcoming election is a reminder that we, as citizens, play an active role in our society by simply getting involved and voting. Who you vote for is a very personal decision that you make as a citizen. It is one way for you to be heard. It is how democracy works. Yet we know that barriers exist, notably in Black and Brown communities throughout the nation, that lend to systemic racism and require greater voter access and protections. I&nbsp;want to share how we are working, in a uniquely Starbucks way, to ensure you&nbsp;have the&nbsp;opportunity for your voice to be heard.

Starbucks is taking a major step forward this year to ensure that no partner will have to choose between working their shift or voting on or before Election Day. Through conversations between managers and nearly 200,000 partners, we’ll ensure you have the tools and the time necessary to register and cast your vote. To further enable this, partners have created a new <a href="http://www.StarbucksPartnersVote.com">portal</a> with tools and resources to support your civic engagement, includinginformation onhow to register to vote, request a mail-in ballot, and volunteer to help make this year’s election safe and accessible.

Voting, while essential, is just one step toward addressing many of the issues in front of us as a society. In the coming weeks and months, you can expect to hear more about the principles we are developing and commitments we will make to further racial equity, justice and opportunity. You will hear about greater transparency into diversity and inclusion data when it comes to hiring, developing and advancing partners across all roles within the company. You will hear about us partnering with civil rights groups, non-profits, governments and first responders who share our belief that every single human being—including Black, Indigenous and people of color—feels safe, welcome and respected. You’ll also hear about other ways we are further using our scale for good in the communities we serve. The bottom line being: Starbucks will not wait for change, we will make change of our own.&nbsp;

THREE CRITICAL QUESTIONS

As we continue to build on all that we have done over the past several years, we are focusing on three important questions&nbsp;for each of us to consider. These questions serve as a framework for thoughtful conversation and action:

As a citizen, what is my role and responsibility?

As a Starbucks partner, what is my role and responsibility to promote a culture of inclusion, allyship, diversity, and equity, both in our stores and throughout our extended work environment?

As a company, what is Starbucks role and responsibility to step up our commitment to promote justice, equity, opportunity and resiliency in all communities we serve?&nbsp;

We will use these questions to guide an ongoing conversation, informed by the Civil Rights Audit and by suggestions from partners around the world, and by our 50-year journey as a company. I encourage all Starbucks partners to take part in this conversation. There are&nbsp; simple actions we can all consider taking now, such as re-reading the audit or signing up for a <a href="https://tobewelcoming.com/">To Be Welcoming</a> course, which we developed together with Arizona State University.

We have a responsibility to promote justice and build bridges, and a mission to inspire and nurture the human spirit. To truly accomplish that requires recognition of, daily commitment to, and investment in racial justice in America.&nbsp;Our journey continues.

With respect and gratitude, Kevin&nbsp;

Kevin Johnson unveils the voter registration initiatives Starbucks is launching to ensure partners and customers have the opportunity for their voices to be heard.

A message from Starbucks ceo to partners and customers on civic responsibility

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A safe and welcoming public space is a shared community responsibility. Consistent with Our Mission and Values, we expect everyone in our third place community to&nbsp;treat others with respect and dignity, free of bias and discrimination. Behaviors that make anyone feel unwelcome or unsafe&nbsp;have no place on our store premises.&nbsp; We trust our baristas to address disruptive behaviors appropriately guided by our existing policies and training.&nbsp;

When in our stores:&nbsp;&nbsp;&nbsp;

Anyone not contributing to a safe and welcoming environment will be asked to change their behavior.&nbsp; Anyone not changing their behavior may be asked to leave the store with possible assistance from law enforcement.&nbsp;

We are committed to creating a culture of warmth and belonging where everyone is welcome. This policy is intended to help maintain the third place environment in alignment with our mission.

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We believe in bringing communities together, both in person and online, and we stand against hate speech. We believe more must be done to create welcoming and inclusive online communities, and we believe both business leaders and policy makers need to come together to affect real change.

Since Starbucks paused advertising on all social media platforms in July, we have spent the last two months in meaningful discussions with key internal and external stakeholders to help us create a principled approach to our demands of the social media industry. In our path forward, we will monitor all platforms’ content, community health and brand suitability, with a continued focus on: transparency (demanding more information about their progress on addressing content that goes against our brand standards and about where our ads appear); enforcement of their standards across platforms (to ensure they are eliminating prohibiting content); and governance and accountability (to ensure that they have the mechanisms to enforce and will continue to make progress where needed).

Based on the productive conversations and commitments of these platforms to date, we evaluated each platform separately and have resumed paid social media advertising on social media platforms based on these principles over the remainder of this calendar year. We will hold our media partners accountable to the commitments they have made and will reserve the right to revisit our ad placement strategy to ensure continued progress towards a more civil online environment.

Creating Welcoming and Inclusive Online Communities - Starbucks Stories

Creating Welcoming and Inclusive Online Communities

Starbucks pauses advertising on social media and calls for a stop to the spread of hate speech on those platforms.

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An open letter to Starbucks partners from Kevin Johnson, Starbucks chief executive officer and president, and Roz Brewer, Starbucks chief operating officer and group president

The last three weeks have provided a powerful opportunity to listen, learn and reflect upon how Starbucks is living up to its mission to nurture the human spirit, one person, one cup, one neighborhood at a time.

That reflection starts with how we failed to create a warm and welcoming environment in one of our Philadelphia stores two years ago. The incident revealed we had real work to do, and <a href="https://stories.starbucks.com/press/2019/starbucks-equity-and-inclusion-timeline/#:~:text=The%20Starbucks%20Foundation%20commits%20%241,towns%20across%20the%20United%20States.">we’ve been on a journey</a> ever since. Now, the recent events triggered by the murder of George Floyd once again call for us to pause and examine our progress towards racial justice, equity and inclusivity. And the truth is, while we’ve made headway in many areas, there is much more to do. In fact, the potency – and potential – of this moment in our nation’s history demands we do more.

To build on our existing foundation and identify meaningful, measurable steps to take moving forward, Starbucks leadership is spending more time listening to and learning from thousands of partners and our Partner Networks, particularly our Black Partner Network (BPN). You saw the result of this recently concerning dress code and our decision to make sure partners feel seen, heard and valued. It’s also through conversations with BPN and allies, we decided Starbucks will stand in solidarity with our black partners to celebrate freedom and condemn oppression by recognizing <a href="http://www.juneteenth.com/history.htm">Juneteenth</a> as an annual U.S. company holiday. As shared earlier today, just as we honor Martin Luther King Jr. each year, Starbucks will pause and reflect upon the ending of slavery in the U.S. on June 19th, the progress we’ve made, and the work ahead for us as a company and individuals. Our stores, distribution centers and plants will remain open and hourly, non-exempt partners who work will receive pay 1.5 times their regular rate. Salaried partners required to work will receive a holiday in lieu, and support partners will receive the day off with regular pay.

Of course, our work doesn’t stop here. Using our<a> </a><a href="https://stories.starbucks.com/press/2020/an-update-on-starbucks-civil-rights-assessment/">Civil Rights Assessment</a> as a blueprint for progress, we’ll&nbsp;continue to listen and learn and do our part to help America live up to its ideals by creating tangible and lasting change within our culture and workforce, the communities we serve, and as citizens. Being a different kind of company has always required us to act with courage and tenacity, even more so now. We won’t always get it right, but our intentions are real, and we’ll continue to listen to our partners, take action and learn and grow from our mistakes. Please continue to share your thoughts on Workplace, the Partner Hub, and through our Partner Network leaders. With respect and gratitude, Kevin and Roz

Letter to Starbucks partners: Continuing to support racial justice with action - Starbucks Stories

Letter to Starbucks partners: Continuing to support racial justice with action

An open letter to Starbucks partners from Kevin Johnson, Starbucks chief executive officer and president, and Roz Brewer, Starbucks chief operating officer and group president, on both the progress and the work ahead for us as a company and individuals.

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A letter to partners from Roz Brewer, Rossann Williams and Zing Shaw

We have always led with Our Mission and Values. Through every moment in our history, and in every crisis, Starbucks has come together to show: We will not be bystanders. This has never been more true than today.

These are alarming, uncertain times and people everywhere are hurting. You’ve told us you need a way to express yourself at work, asking:

Do you understand the black community is in pain?

We see you. We hear you. Black Lives Matter. That is a fact and will never change.

This movement is a catalyst for change, and right now, it’s telling us a lot of things need to be addressed so we can make space to heal.

As we talked about earlier this week, we’re designing new t-shirts with the graphic below to demonstrate our allyship and show we stand together in unity. Until these arrive, we’ve heard you want to show your support, so just be you. Wear your BLM pin or t-shirt. We are so proud of your passionate support of our common humanity. We trust you to do what’s right while never forgetting Starbucks is a welcoming third place where all are treated with dignity and respect.

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Designed for partners, by partners, our Starbucks Black Partner Network and allies created the t-shirt to recognize the historic significance of this time. Together, we’re saying: Black Lives Matter and it’s going to take ALL of us, working together, to affect change. That means using our voice to vote in our elections, volunteering in our black communities, joining local peaceful protests, ensuring our diverse slates of job candidates translate into diverse hires, mentoring and sponsoring partners of color so they can reach their maximum potential and taking steps to build greater understanding with empathy. Most importantly, it means ensuring we create a safe third place where you are seen, heard and valued.

You’ll receive additional operational guidance by Monday, June 15.

Your partners, Roz, Rossann and Zing

Standing together against racial injustice - Starbucks Stories

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Standing together against racial injustice

A letter to partners from Roz Brewer, Rossann Williams and Zing Shaw.

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A letter to Starbucks U.S. partners from Kevin Johnson, Starbucks ceo and president

Last night we called for a partner forum for any Starbucks partners who felt compelled to join a conversation about the murders of George Floyd, Ahmaud Arbery and Breonna Taylor and the many other racial injustices that have shaken the entire country and each one of us. And today, on a Saturday, two thousand partners – many joined by family members -- came together virtually to share stories, express emotions, and support one another as we all try to make sense of what is happening in our society.

As we all deal with our personal feelings and experiences through this, there are important questions in front of us. How can we help each other heal, and how can we contribute to society in a positive and constructive way on the topic of racism and injustice?

During this afternoon’s 90-minute forum, Zing Shaw, our global chief inclusion and diversity officer at Starbucks, shared Dr. Martin Luther King Jr.’s quote: “A riot is the language of the unheard. What is it that America has failed to hear?” She stressed the importance of us listening to each other and the power of acknowledging the work that we need to do as a country and as a society.

Today was an opportunity for us to listen to one another as partners. &nbsp;

Shaun Spearmon, a program manager at Starbucks, said that as a Black man, he lives with the reality that far too many in the world don’t value his life, something he had to learn as a child – and something he worries about every day as he raises a young son. “I’m terrified his experience will be like mine,” he said.

The solution starts with a sense of urgency about change, he said. “Racism and the targeting of people of color and of Black men has to be our problem, not just mine. It needs to be shared by all of us. Our lives literally depend on it.”

Other partners also courageously shared their stories. Kris Clemmons, a director of regional operations, U.S. field operations, talked out how his great grandparents were born into slavery. They could have looked back at their history and, based on that, not had reason to think anything would change going forward but, still, they dreamed of a different life.

“I am the descendent of believers in the impossible,” Kris said. “But for their dream, I wouldn’t be here. … It reminds me of my duty to dream the impossible for future generations.” 

That dreaming isn’t a passive activity, he said, people can donate money to organizations working to dismantle racial oppression and vote and fight to protect the rights of others to vote.

Toward the end of the session, Zing told us that she wakes each morning asking herself two questions: “If not me, who? If not now, when?” She challenged us to ask ourselves those questions, to listen to the answer and to use it to understand the difference we can make.

“We must remain optimistic,” she told us. “We must be honest about the situation and be open to listen and learn. We must be willing to take positive steps forward. That’s what I think we are doing by having this session.”

We have always believed in being a different kind of company. Today was an example of that – and we will continue having these conversations. Roz Brewer and I are grateful for the partners who led today’s discussion including Zing, Kris, Shaun, Camille Hymes and Adam Modzel who all shared their stories and participated in the conversation with our partners. I appreciate all who joined us and for those who shared their very important and unique perspectives on the events our country is grappling with. &nbsp;

While we may not have all the answers, we know the path forward requires these courageous conversations with one another. As I shared at the close of today’s meeting it is, in part, our promise to one another as partners to live our mission and values daily. We are a family. We act with empathy and compassion. And we honor our differences, always. We uplift each other. Because that is what true Starbucks partners do.

Letter from ceo: Courageous conversations in the wake of George Floyd’s murder - Starbucks Stories

Letter from ceo: Courageous conversations in the wake of George Floyd’s murder

During a Starbucks partner forum, thousands of partners and members of their families joined virtually to address the question of how we can help each other heal and contribute to society in a positive way when it comes to ending racism and injustice, writes Kevin Johnson, chief executive officer of Starbucks.

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An open letter to Starbucks partners from Rossann Williams, evp and president, U.S. company-operated business and Canada

When we began navigating the COVID-19 crisis together, we made a commitment to you to do everything we can to care for your health, safety and well-being. This focus allowed us all to take timely, proactive steps, including closing our cafes and expanding our safety protocols to exceed national and local health guidance whenever possible. As the crisis began to peak, forcing more than 38 million Americans out of work, we stood strong, together, and built the most comprehensive set of temporary COVID-19 benefits to support our partners, including Service Pay to recognize your hard work and efforts as we modified operations, Catastrophe Pay for you to take care of yourself and your family, as well as expanded mental health, childcare, food and beverage benefits. Most importantly, with Our Mission and Values at our core, we showed up for each other and our communities with courage, strength and resilience to do what we do best: inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.&nbsp;

Our intent is to keep partners safe and employed as we rebuild our business, safely and responsibly. I am especially grateful for all the partners – in our stores, and our support centers – who continue to work around the clock to reimagine what’s possible as we modify stores and adapt to new ways of operating. Yet, even as we re-open more than 85% of our stores here in the U.S., and know from our experience in China, we are not immune to the widespread economic impacts of COVID-19. Customer routines and occasions have changed – for all retailers – and it will take some time to recover. As many of you are already seeing, the need for modified operations and reduced store hours as well as economic impacts and shifted consumer behaviors are unfortunately impacting our partner hours.

I know that many of you have been having open and honest conversations with your managers since early May about your individual needs and expectations. Your feedback has been critical as we consider how to best support partners who are not getting the hours they need, including implementing a new&nbsp;COVID-19 Leave of Absence&nbsp;policy for partners who prefer to take an unpaid leave through Sept. 30 and accrue up to 20 hours per week toward benefits eligibility. On this leave, partners will be able to keep their existing benefits like Lyra, Headspace, Spotify, Care@Work, the Starbucks College Achievement Plan (SCAP), and our food/beverage benefits, and explore any COVID-19 federal and state unemployment compensation they may be eligible for, such as $600 per week of unemployment assistance under the CARES Act. In addition, Starbucks will pay your health care premiums in full while on leave, if you are currently enrolled in one of our plans.

Thousands of partners are already taking advantage of our 30-day Personal Leave of Absence policy and we want to help make sure partners can now make use of the COVID-19 Leave of Absence if they do not have enough hours available to them during this economic crisis. I know that&nbsp;every partner’s situation is deeply personal, and each store’s business needs look quite different.&nbsp;For instance, some partners may prefer to continue working in a store, even though we anticipate that there will initially be a reduced number of hours to offer partners as we rebuild the business. Other partners may prefer to take an unpaid COVID-19 Leave of Absence so they can leverage unemployment compensation and feel supported with their current healthcare plan and benefits, while taking the time to stay home or care for a loved one. I know some partners who are facing reduced hours may prefer to take this opportunity to pursue a different path outside Starbucks, and we are considering how to best support and care for these partners as well.

I know you will all have lots of questions for us, and please know that&nbsp;we will get you all of the information and details, with complete transparency, next week, so you have the support needed to fully understand the different options, based on your store’s needs as well as your personal preferences. This week, we are supporting your district managers in assessing what their stores need, given the economic impacts of COVID-19. Following that, next week, we will connect with your store managers, so they have all the details about our partner care options, including the COVID-19 Leave of Absence. Your store managers will then connect with each of you personally to understand your needs, expectations, and preferences, so we can do what’s best for each store and support you.

As I’ve said before, this is truly our&nbsp;defining moment&nbsp;– and it rings more true each day. Whether you are in the store, field or support center, we all have a responsibility to do everything we can to safely get our stores back in business so we can protect as many partner hours as possible. This is our time to come together and drive our best thinking on how we are going to create Best Moments for our customers, adapt to their new routines, and continue to be that beacon of hope in our communities.

As we do this, you have our word – and my personal commitment – that we will always keep partner care front and center, especially as we continue to weather the economic crisis ahead. Because we trust in you. We believe in you. And in my heart, I know that we will emerge from this stronger, more resilient than ever before.

A letter to partners: Partner care as we rebuild from COVID-19 - Starbucks Stories

A letter to partners: Partner care as we rebuild from COVID-19

Starbucks is implementing a new COVID-19 Leave of Absence policy for partners who prefer to take an unpaid leave through Sept. 30.

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A letter to Starbucks U.S. partners from Kevin Johnson, Starbucks ceo and president

Throughout history, when humanity is faced with adversity, new ideas are born and people embrace change. This reinvention is healthy as it enables lasting progress.

For example, during the American Civil War when the United States was divided like never before, President Abraham Lincoln initiated the construction of the Transcontinental Railroad, which brought the country closer together. When the nation lived in fear of polio, investments in medical research encouraged and allowed Dr. Jonas Salk to discover a vaccine. During the Cold War, President John F. Kennedy united the country around a quest to the Moon.

Similarly, we will all be shaped by this shared experience as we navigate a global pandemic, and this experience will be a catalyst for new ideas. Ideas that reshape our future and create lasting positive change.

At Starbucks, we have been on this journey together, every step of the way since the virus emerged and then grew into a global pandemic. From the beginning, we have used three simple principles to guide our decisions – prioritizing the health and well-being of our partners and customers; playing a constructive role in supporting health and government officials as they work to mitigate the spread of this virus; and showing up in a positive and responsible way to serve our communities.

I am proud of all Starbucks partners, and how you have shown up in support of one another and in support of the communities we serve. You are the heartbeat of Starbucks, and you have demonstrated why our company is resilient.

In <a href="https://stories.starbucks.com/stories/2020/navigating-through-covid-19/">regular letters</a> to customers, partners and all stakeholders, as well as through weekly virtual meetings with several thousand field and support center partners, I have had open, honest and transparent conversations about the challenges we face, and the progress we are making, together as a Starbucks family. We are now in a new phase of this journey during which, step-by-step, we are reopening stores, reconnecting with customers and recovering our business globally.

Over the past two weeks in the U.S., we are seeing a positive response from customers as they adapt their daily rituals to this “now normal.” However, until a vaccine is developed and broadly available, consumers will be cautious as they return to work or go back to school. And with over 36 million Americans suddenly out of work and concerned about their future, there are questions about the overall shape of the economic recovery in this COVID-19 economy.&nbsp;

We know that after several weeks of lockdown and sheltering-in-place, consumers will seek experiences that are safe, familiar and convenient. The reopening of our stores in China, the U.S. and elsewhere have confirmed that to be true. Over the last week, we have now regained about 60-65 percent of prior year comparable U.S. store sales while reopening under modified operations and with reduced hours.&nbsp; In China, we have seen progress as well and our comparable store sales have reached about 80 percent of prior year levels, reflecting gradual improvements over the past several weeks.

We learned in China that when we re-open stores, we begin a recovery process that starts with those safe, familiar and convenient experiences and grows from there. Our recovery progresses each week, and we know that it will take time to fully recover and post positive comparable store sales growth. For example, we began reopening a large number of stores in the U.S. in the second week of May and we are tracking slightly above our forecasted recovery curve. With the launch of our new summer menu today, we are hoping to begin welcoming back more customers to Starbucks.

We are pleased with our progress, but we are by no means immune to this global pandemic. Therefore, I want to be straightforward in describing our plan that both adapts to the new COVID-19 economy while building a bridge to the future. Our “Bridge to the Future” includes three clear actions that I want to share with you here:

While we believe the focused actions we are taking – to deliver contactless customer experiences, coupled with continued beverage innovation and expanded digital capabilities – will over time allow us to recover the business and recreate the momentum we experienced prior to the pandemic, we need to acknowledge that during this COVID-19 economy, many of our stores will maintain modified operations and reduced hours and will not require the same level of staffing.

As we stated recently in our earnings report, as customer traffic builds, we will see an increasing number of partner hours allocated to our stores. Until that time, however, the number of hours many of our partners were used to pre-pandemic won’t be available. It is important that we are open and honest about the current reality of the COVID-19 economy, and work directly with each partner to ensure they understand the options in front of them whether they choose to stay with Starbucks or choose to pursue a different path.

To help Starbucks partners who choose to stay, understanding the limited hours available, we are extending the COVID-19 unpaid leave policy through the end of September as an option for those partners who need the safety net of Starbucks comprehensive benefits and wish to remain a Starbucks partner, while being able to access any emergency benefits they may be eligible for by their state or by Congress through the CARES Act. In addition, Starbucks will cover the health care premiums for eligible partners during this public health crisis for those on COVID-19 leave. We are finalizing the details now and will be sharing those with all U.S. store partners starting next week.

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With health officials’ recommendations and evolving local governments’ directives, it may seem that the business environment during this pandemic is ever-changing. Regardless, the path for Starbucks has been clear and consistent since the beginning of this pandemic. Our goal has been to protect customer and partner safety, support local government and health officials while working to exceed their guidelines for safety, and to show up in a positive way for the communities we serve.

This much I know is true: connection and community are fundamental to humanity. As we gradually come out of isolation, people will continue to crave connection and crave a sense of community.

So that is our job now: to build a bridge to a future that – yes – will look different, but that stays true to Starbucks mission and values. We will build it together, and it will carry us all to a better tomorrow for Starbucks and the communities we serve. Out of this crisis, just as those of our past, will come lasting progress. I predict that progress, whatever shape it takes, will lead to greater joy in each of us and more sense of community than we’ve ever known.

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Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “remain,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to: the timing and effects of the third place transformation initiative; the temporary nature of the impact of COVID-19 on our business, operations and financial results and the anticipated timing of recovery of business; the assumption and effects of improvements in traffic in stores; our optimism for business recovery over time; and the ability to leverage operational insights from our experience in China to inform our actions in other markets, including the U.S. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: further spread of COVID-19; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including restrictions on business operations or social distancing requirements, and the duration of such restrictions; the potential for a resurgence of COVID-19 infections in a given geographic region after it has hit its “peak”; fluctuations in U.S. and international economies and currencies; our ability to preserve, grow and leverage our brands; the ability of our business partners and third-party providers to fulfill their responsibilities and commitments; the acceptance of the Company’s products by our customers and evolving consumer preferences and tastes and the availability of consumer financing; changes in the availability and cost of labor; the impact of competition; inherent risks of operating a global business; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; the disruption to our business related to COVID-19; and other risks detailed in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” sections of Starbucks Annual Report on Form 10-K for the fiscal year ended September 29, 2019 and Starbucks Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2020. The Company assumes no obligation to update any of these forward-looking statements.

Starbucks ceo: Building a bridge to our future - Starbucks Stories

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Starbucks ceo: Building a bridge to our future

Starbucks ceo Kevin Johnson outlines the company's plan to adapt to the new COVID-19 economy while staying true to the company's mission and values.

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https://stories.starbucks.com/press/2020/starbucks-ceo-building-a-bridge-to-our-future/

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A letter to Starbucks partners and customers from Kevin Johnson, Starbucks ceo and president

Over these past months, as the entire world has responded to the global pandemic of COVID-19, I have been inspired by the strength of humanity united in common cause — the compassion shown by those working in service of others — as well as the courage, emotional resolve and attitude of optimism demonstrated as we overcome adversity.

At Starbucks, that inspiration has come from our partners, whose dedication and ability to adapt leaves me feeling proud every day. During this unprecedented challenge, Starbucks partners have risen to the occasion every step of the way and have shown up for their communities and front-line responders. Our partners make Starbucks resilient, and that gives me immense confidence that we can overcome any challenge we face.&nbsp;

As so many in our family of partners come back this week, <a href="https://stories.starbucks.com/stories/2020/a-message-from-starbucks-ceo-kevin-johnson-preparing-for-the-next-phase-in-the-us/">responsibly re-opening stores</a> across the United States, we are poised to adapt very rapidly, in meaningful ways that enhance the Starbucks Experience for our partners, customers, and the communities we serve. We are accelerating many forward-looking initiatives to address the realities of the current situation. We do this to provide a safe, familiar and convenient experience for our customers.

These adaptations will reinforce the concept of the third place— a warm and welcoming place, outside of our homes and our workspaces, where we connect and build community. We think of the third place as a mindset — a feeling of comfort that uplifts customers everywhere, and in every way, they experience Starbucks. And the third place has never been more relevant than now, as communities seek to reconnect and heal.

Starbucks is proud to be an active participant in tens of thousands of communities battling this crisis and working toward a time of healing. After seven weeks of sheltering at home in the U.S., we have embraced an approach of monitoring, rapidly adapting to, and even shaping, the “now normal.”

Health officials tell us it could be many months until there are effective COVID-19 treatments and a vaccine. As we gradually come out of isolation, people will crave the connection and community that are fundamental to humanity. However, customers will want experiences that are safe, familiar and convenient. With health and safety prioritized, we are defining the future of Starbucks to meet evolving customer expectations and societal change.&nbsp;&nbsp;

Starbucks is committed to create a third place experience that is exactly tuned to that need — providing safe, familiar and convenient experiences.

By the end of this week, Starbucks partners will have responsibly reopened over 85 percent our company operated stores across the U.S., and we are expecting more than 90 percent of our stores to be open by early June, under modified operations and hours.The foundation of our approach comes from what we have learned in China, where more than 98 percent of our stores are now open and operating under revised protocols. We have adapted these protocols for the U.S. and our goal is to exceed the standards outlined by the Centers for Disease Control and Prevention for a safe experience, including heightened emphasis on <a href="https://stories.starbucks.com/press/2020/what-customers-need-to-know-about-starbucks-response-to-covid-19/">cleaning and sanitizing protocols in our stores</a>.

We have expanded service beyond drive-thru to include mobile ordering for contactless pick-up, delivery and, in some locations, curbside pickup and grab-and-go through the café.

We are putting immense emphasis on the safest and most convenient way for customers to order their favorites from Starbucks. Nearly 20 million customers are using the Starbucks App as part of their daily routines and as those routines evolve, we’ll be finding ways to tailor the app to customers’ individual needs.

The third place experience created by Starbucks partners in our stores is extended and enhanced by the digital relationships we have with our customers. Our Starbucks App will enable new features, including optimizing for curbside pick-up, entryway handoff, improved drive-thru experiences, voice ordering through Siri and the ability for everyone to earn stars that can be redeemed for rewards. We will also shift toward more cashless experiences, knowing that the handling of cash creates consumer concerns about the spread of viruses. We predict the mobile app will become the dominant form of payment.

We continue to invest in our <a href="https://stories.starbucks.com/stories/2020/how-starbucks-plans-to-use-technology-to-nurture-the-human-spirit/">Deep Brew</a> suite of artificial intelligence (AI) capabilities, and we will double down there as well. One immediate Deep Brew solution supports our operations and field leadership team as they make data-driven decisions related to store re-openings and operating protocols. And the <a href="https://stories.starbucks.com/stories/2019/inside-the-tryer-center-the-starbucks-lab-where-anything-is-possible/">Tryer Center</a>, which we opened last year to innovate on store design and in other areas, has kicked into overdrive as well. These investments were made with an eye toward innovation and the future of Starbucks; they’re now poised to help us adapt as we accelerate a retail transformation.

Starbucks is well-positioned for this transformation. Pre-COVID-19, more than 80 percent of customer orders in the U.S. were for “on the go” — through the drive-thru, in a café at point-of-sale or through Mobile Order for pickup or delivery. That means the majority of Starbucks customers are already familiar with the safe, convenient experiences that are now called for by physical distancing recommendations.

As we adapt, we build on our heritage and remain focused on our mission: To inspire and nurture the human spirit — one person, one cup and one neighborhood at a time.

As this global pandemic has impacted the lives of everyone on the planet, I have been reflecting on how significant generational life experiences reshape humanity. I immediately thought about lessons I learned from my grandfather. When I was a young boy, he shared stories of his life growing up during the Great Depression and serving in WWII. Those life experiences taught him to appreciate the simple things in life, the things that are often taken for granted, like good health and loving relationships. This global pandemic will serve as a reminder that life is fragile and create a renewed appreciation for health, love and joy.

On the other side of this challenge, we will treasure human connections — from warm embraces with our loved ones to small everyday interactions with those in our communities — like we never have before. Human connections will not only be restored, but reinforced and re-invigorated. The third place will not just survive, but with adaptations and new routines, it will thrive.

And when that happens, as my grandfather did for me, I will share wonderful stories about my life experience with my grandchildren, knowing that Starbucks will be there for them and future generations to come.

Starbucks ceo: The third place, needed now more than ever before - Starbucks Stories

Starbucks ceo: The third place, needed now more than ever before

Starbucks continues to adapt while navigating COVID-19, prioritizing health and safety of partners and customers and providing a third place for communities.

https://stories.starbucks.com/press/2020/starbucks-ceo-the-third-place-needed-now-more-than-ever-before/

From day one, our commitment to you has been to make proactive decisions, based on the facts and science, with our three guiding principles: ensuring your safety and well-being, supporting our public health and government officials and being in service to our communities. As we navigate the way forward, you have my word that we will continue to do what’s right for you and your families, so you feel supported every step of the way.

Like many of you, I’ve been thinking about Starbucks role and responsibility as our country faces the harsh realities of COVID-19. More than 17 million Americans have now filed for unemployment, and many of you have shared how the crisis has hit home, impacting your loved ones. I am grateful to work for a company where we can make the decisions necessary to care for our partners through a crisis like this, and we’re going to do everything we can to continue to make that a priority. But we must act urgently – together. As states begin to relax their stay-at-home orders and more communities prepare to reopen, we will need to get our stores back up and running, wherever it is safe and responsible to do so, so we can keep every partner employed and be a light for our communities through this next phase of rebuilding and recovery. 

Some of you have asked if we will be able to re-open all our stores at once, and to be honest, there’s no one-size-fits-all solution. The impact of COVID-19 varies across communities, and decisions will need to be made locally, with our field leaders, store managers and local health experts. As <a href="https://stories.starbucks.com/stories/2020/a-message-from-starbucks-ceo-kevin-johnson-preparing-for-the-next-phase-in-the-us/">Kevin shared in his letter</a>, we are entering a phase of “monitor and adapt” and will need to modify operations to Drive-Thru, Delivery, MO&amp;P or Entryway Handoff only, store by store, with best in class safety protocols. We will use the strongest data available to help us assess a store’s readiness, considering things like the trajectory of the virus, local mandates, operational capabilities and customer and partner sentiment. And even if we can re-open a store, we will always pause to consider should we re-open, so we can support our field leaders in making the best decisions possible. I have full confidence in the approach because 1) we did this successfully in China, where over 95% of all stores have now re-opened, 2) we are already operating modified formats in half our stores in the U.S. and 3) we have the best partners in the business to help execute this thoughtfully, with partner care front and center.

With that in mind, here’s how we’re going to approach this next phase:

Beginning May 4, we will re-open as many stores as we can with modified operations and best in class safety measures, and intend for any partner who is healthy and well to come back to work. We will make time the first week of May to reconnect as a team and welcome back our partners. And we’ll do this in a way that only Starbucks can – celebrating each other, making time for training across our new formats and safety protocols and re-immersing in our mission and purpose as a team.

To support our partners, we will extend Service Pay through the end of May with an additional $3 per hour for anyone who is healthy and choosing to work, and we will similarly extend Catastrophe Pay for partners who have been diagnosed or exposed to COVID-19, so they can stay home and self-isolate. We will continue our expanded Food/Beverage benefit and expanded Care@Work benefit with 20 backup days. All other benefits like Lyra for free mental health support, paid sick leave, paid time off, and more are always available, whether you are working or being supported with Catastrophe Pay. We will also continue to have Catastrophe Pay available for partners whose stores have to close, or stay closed, during May. And in order to ensure partners are paid for their average baseline hours, we will make Catastrophe Pay available to help close the gap between hours worked on Service Pay and average baseline hours through May 31.

For those partners whom the CDC has identified as at higher risk for severe illness from COVID-19, or partners who live with a health care worker who works with COVID-19 patients, I encourage you to connect with your leader in the coming weeks so we can better understand your specific circumstances and how we can best help you manage your situation. That could include placing you in a lower risk environment (i.e. delivery only store), identifying resources and benefits to support you, or extending Catastrophe Pay until the end of May, if that’s what you need. We will similarly provide Catastrophe Pay until the end of May for partners navigating childcare challenges. Everyone’s situation is different and always evolving, and we want to help you make the right decision for you.&nbsp;&nbsp; 

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