Starbucks hosted its biennial Investor Day on Tuesday; here are some of the day’s highlights
Starbucks hosted its biennial Investor Day today at the Starbucks Support Center in Seattle, where Howard Schultz, interim chief executive officer, Rachel Ruggeri, chief financial officer, and other members of the Starbucks leadership team showcased the company’s Reinvention plan. They discussed the actions and investments the company is making to enhance the Starbucks Experience for partners and customers and drive accelerated long-term growth.
Highlights shared by the company include:
1. Reinvention plan positions Starbucks for the next chapter of growth
The Reinvention plan is ushering Starbucks into a new era of growth, underpinned by a renewed focus on the foundations of its business – partners, stores and customers. Investing in this powerful “Triple Shot for Growth” will continue to differentiate the Starbucks brand and experience. The company announced today that it expects deliver 10-12 percent net revenue growth and 15-20 percent net earnings growth annually over the next three years, surpassing the 10-12 percent range shared at the last Starbucks Investor Day in 2020. This reflects acceleration in each and every building block of our growth, powered by Starbucks green apron partners around the globe.
2. Starbucks is focused on reinventing the partner experience
Company leaders shared commitments to radically improve the retail partner experience, making changes to focus on helping partners thrive at work, as individuals and together through new tools such as wage innovation, well-being benefits and personalized career mobility. It’s paying off as Starbucks has started to see results with retention rates steadily rising and on track to return to and exceed pre-pandemic levels.
3. The Starbucks brand is building on strength
The Starbucks brand is more relevant and differentiated than ever before with the number one market share and brand affinity. It’s a strong, relevant brand that is poised for growth. Starbucks has the highest brand affinity among Gen Z and multicultural consumers, who also make up more than half of the customer base. And, among multicultural consumers, Starbucks is the market leader on brand affinity, visits and is the first choice among away-from home coffee drinkers that identify as LatinX, African American and Asian American.
4. Going Global: The digital Starbucks experience is coming to all stores
With mobile orders accounting for 25 percent of customer transactions in the U.S., Starbucks is elevating the digital Starbucks Experience, including through providing real-time updates in the app and a dedicated mobile order pick-up lane. By making Mobile Order & Pay more personalized and effortless, Starbucks will continue to drive relevancy for customers and growth in mobile orders.
To meet growing customer demand, Starbucks is committed to expanding its digital Starbucks Experience to all locations, from airports and grocery stores to international markets, and Starbucks Connect is the new technology that is making this possible. With a consistent digital experience across Starbucks entire portfolio of stores, customers will get a holistic Starbucks Rewards experience, including Mobile Order & Pay and a wider arrange of star redemption opportunities, no matter which Starbucks they visit.
5. A purpose-built approach to meeting customer needs
Over the next three years, Starbucks sees continued opportunity for purpose-built store growth as demand for the brand increases. This includes increasing the number of drive-thrus while also expanding the number of stores that are “purpose built,” such as delivery only and curbside pick-up stores. In addition, this design approach will help modernizing physical stores to serve the increasing demand while creating an environment that is inclusive and accessible, through the lens of sustainability. It’s all part of meeting customers whenever and wherever they are.
6. Harnessing global store growth opportunities
Starbucks is rapidly expanding its global footprint and expects to approach 45,000 stores by the end of 2025 (up from nearly 35,000 now) and 55,000 stores by 2030 – this means opening eight new stores a day. Starbucks is already well on its way; in China, Starbucks has increased its footprint nearly 10-fold to 6,000 stores, and is continuing to grow, as it targets increasing store count by 50 percent to reach 9,000 stores by fiscal year 2025.
7. New, innovative equipment will give baristas more time for customer connections
Starbucks is introducing more efficient state-of-the-art equipment putting better tools in the hands of partners and, in turn, driving an improved partner and customer experience. Starbucks has developed a redesigned Cold Beverage Station, which reduces the time and number of steps to make a cold beverage. It has also begun rolling out new Clover Vertica™ equipment, which will freshly grind and brew a cup of coffee, on demand, in 30 seconds.
8. Cold Brew took center stage at the morning coffee tasting
Green apron partners (employees) offered hand crafted, high quality arabica coffee to Investor Day participants, highlighting the coffee and craft at the center of the Starbucks Experience. Attendees tasted Starbucks popular Cold Brew beverage, which has a unique flavor profile that is unlocked by a blending, roasting and steeping process
Photos by Josh Trujillo and Connor Surdi / Starbucks Stories