For the last month, Starbucks chief executive officer Howard Schultz and other company leaders have met with retail partners (employees) in small groups around the country to co-create the next chapter of Starbucks. In dozens of collaborations sessions, partners shared their frustrations, hopes and ideas. On Tuesday, Schultz shared the new investments that came out those sessions.&nbsp;

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A truly different kind of company, for partners, by partners &nbsp;

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During the Starbucks quarterly earnings call, Schultz today announced the following investments designed to transform and elevate the experience of Starbucks partners and customers – all co-created by retail and non-retail partners working together. They will bring the total investments in the partner and store experience to $1 billion this fiscal year.&nbsp;&nbsp;

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The company is also planning to introduce credit /debit card tipping, equipment and technology enhancements and launch a modernized recognitions program. Also during the Tuesday earnings call, Brady Brewer, Starbucks chief marketing officer, <a href="https://stories.starbucks.com/stories/2022/starbucks-creating-the-digital-third-place/">shared plans for a series of branded NFT</a> collections, the ownership of which initiates community membership, and allows for access to exclusive experiences and perks.

"From our beginning, we have nurtured human connection and served a fundamental belief that coffee brings us together. We brought this to life in what we’ve called the Third Place – a place between home and work where you could connect and feel a sense of belonging, over coffee. Now, we are extending the Third Place concept of Starbucks into a new kind of community," Brewer said during the earnings call. "... We are creating a Digital Third Place."

To read the full press release on investments, go <a href="https://stories.starbucks.com/press/2022/starbucks-commits-one-billion-in-fy2022-investments-to-uplift-partners-employees-and-the-store-experience/">here</a>.&nbsp;

The ceo’s letter to partners&nbsp;

In a letter to Starbucks partner on Tuesday, Schultz reflected on what he’s learned during collaboration sessions over the last month and shared his ongoing commitment:&nbsp;&nbsp;

“As I shared with you last month, love and responsibility are what brought me back to Starbucks: my love of the company and my deep responsibility to our partners and shareholders. Hearing from so many of you since my return has only deepened my commitment and affirmed the need to take bold action to restore your trust and belief in Starbucks. I could not be more optimistic or confident in our next chapter that is now underway.” &nbsp;

Read the full <a href="https://stories.starbucks.com/stories/2022/letter-from-starbucks-ceo-howard-schultz-investing-in-our-shared-future/">letter here</a>. &nbsp;

Video: Creating our future together as partners&nbsp;

Watch a two-minute video featuring the collaboration sessions and new investments.&nbsp;

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New investments at-a-glance&nbsp;

Starbucks partners also received a one-page poster detailing the new investments and when they’ll start to see them. 

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On Tuesday, the company announced new investments in partners during the quarterly earnings call, through a letter from ceo Howard Schultz, a video and more.

Highlights from Starbucks $1 billion partner store investments and the story behind them

Stories to inspire and nurture the human spirit

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Next round of investments will lead to enhancements in partner pay, modernized training and collaboration, store innovation and a return to the celebration of coffee

With these new investments and record customer demand, Starbucks expected to deliver historic financial performance, returning to healthy long-term growth

SEATTLE – Starbucks Corporation (NASDAQ: SBUX) – Today, on Starbucks FY2022 Q2 Earnings call, ceo Howard Schultz announced the company will make additional investments in partners and stores for prioritized areas such as increased pay, modernized training and collaboration, store innovation, and the celebration of coffee, bringing the total investments to nearly $1 billion in this fiscal year alone. This decision enables Starbucks to meet record customer demand and partner needs in an operating environment deeply impacted by COVID.&nbsp;

On the call with investors, Schultz shared, “What you will see is the transformation of the Starbucks customer and partner experiences. The transformation will accelerate already record demand in our stores. But the investments will enable us to handle the increased demand – and deliver increased profitability - while also delivering an elevated experience to our customers and reducing strain on our partners. And we will reintroduce joy and connection back into the partner experience.”

Since his return as ceo on April 4, Schultz and other Starbucks executives have been visiting retail and roasting plant partners around the country to hear firsthand how their work and lives have been impacted over the last two years. In immersive collaboration sessions, many partners spoke bluntly of the challenges on and off the job, and the unprecedented operational and physical impacts from COVID on the partner and store experience. They offered suggestions for improvements and innovations based on their direct experience, gave feedback on investments under consideration, and voiced hope for what the Green Apron can stand for in the future.

A truly different kind of company, for partners, by partners&nbsp;

Schultz today announced the following investments designed to transform and elevate the experience of Starbucks partners and customers – all co-created by retail and non-retail partners working together.

In a letter to Starbucks partners earlier today, Schultz wrote, “As I shared with you last month, love and responsibility are what brought me back to Starbucks: my love of the company and my deep responsibility to our partners and shareholders. Hearing from so many of you since my return has only deepened my commitment and affirmed the need to take bold action to restore your trust and belief in Starbucks. I could not be more optimistic or confident in our next chapter that is now underway.”

Additional Investments Planned as Co-Creation Continues&nbsp;

As Schultz and Starbucks leaders continue to meet with and hear from partners, additional areas of investment have been prioritized for upcoming investments:&nbsp;

To investors on the earnings call this afternoon, Starbucks chief financial officer, Rachel Ruggeri spoke about the investment decisions, “We are confident the investments we are making in our partners, our stores and our brand, will deliver significant returns, in excess of historical levels, resulting in accelerated long-term growth.”

The company also confirmed it will move its Investor Day previously planned for December in New York to take place now in September in Seattle. &nbsp;

New pay and benefits changes will apply to stores where Starbucks has the right to unilaterally make these changes. Where Starbucks lacks the right to unilaterally make these changes (for example, stores where there is a union or union organizing) Starbucks will provide wage increases that were announced in October 2021 and will otherwise comply with all applicable legal requirements. &nbsp;&nbsp;

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Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or <a href="http://www.starbucks.com/" target="_blank" rel="noreferrer noopener">www.starbucks.com</a>&nbsp;

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Next round of investments will lead to enhancements in partner pay, modernized training and collaboration, store innovation and a return to the celebration of coffee.

Starbucks Commits $1 Billion in FY22 Investments to Uplift Starbucks Partners and the Store Experience

Starbucks Commits $1 Billion in Fiscal Year 2022 Investments to Uplift Starbucks Partners (employees) and the Store Experience

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Starbucks Coffee Company (NASDAQ: SBUX) today announced a wave of investments for its partners (employees), building on its 50-year history and tradition of listening and learning, while investing its success back into its people. Announcements of both operational and wage investments for U.S. partners and company-operated stores are designed to retain and recruit the best people and affirm Starbucks as one of the very best jobs in retail – a reflection of the company’s unwavering belief that success is best when it’s shared.

“As Starbucks celebrates our 50th anniversary we are reminded that our heritage is based on the simple concept that our green apron partners are the heartbeat of Starbucks and that success is best when it’s shared,” said Kevin Johnson, Starbucks president and chief executive officer. “Today, we are announcing another historic investment in our partners, knowing that when we take care of our partners, they take care of our customers, and all stakeholders benefit. This is how we continue to build a great and enduring company. One that is committed to the ideal that doing good for one another – and for society – is good for business over the long-term.”

In a letter to all U.S. partners, Rossann Williams, Starbucks executive vice president, president North America, emphasized the company’s continued commitment to listen, learn together, and deliver real, measurable value to partners, customers and shareholders. The investments the company will be making will enhance wage, training and in-store experiences, nationwide.

“Our&nbsp;founder&nbsp;Howard Schultz&nbsp;believed in&nbsp;the&nbsp;dignity of the&nbsp;human experience,&nbsp;in&nbsp;building a successful company,&nbsp;and&nbsp;that our success should always be shared,” said Williams. “These new investments show the continued commitment we all have to creating the best opportunities and experience for our partners.”

With innovative benefits for part-time employees, including health care, equity ownership for all levels in the organization, free college tuition through the Starbucks College Achievement Plan with Arizona State University and Mental Health support through a partnership with Lyra, Starbucks has been on the forefront of investing in its people since the opening of the original store in the Pike Place Market in Seattle in 1971. The introduction of these latest investments builds on unprecedented partner investments uniquely designed to <a href="https://stories.starbucks.com/press/2020/what-customers-need-to-know-about-starbucks-response-to-covid-19/">support partners during</a> the COVID-19 pandemic.

Forward-Looking Statements&nbsp;

Certain statements contained herein and in our investor conference call related to these results are “forward-looking” statements within the meaning of the applicable securities laws and regulations.&nbsp; 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.&nbsp; These statements include statements relating to: our accelerated labor investments; our business outlook, projections and guidance; operations and financial results; our sustainability goals and initiatives; the recovery of our business; and our ability to drive long-term growth. These forward-looking statements do not represent historical data, are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties.&nbsp; Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: the actual impact of our accelerated labor investments on our operations and financial results; further spread of COVID-19 and its variants; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including vaccine mandates and restrictions on business operations or social distancing requirements and the duration and efficacy of such restrictions and the world-wide distribution and acceptance of vaccines; 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; potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; costs associated with, and the successful execution of, the company’s initiatives and plans, including the successful expansion of our Global Coffee Alliance with Nestlé; our ability to obtain financing on acceptable terms; the acceptance of the company’s products by our customers, evolving consumer preferences and tastes and the availability of consumer financing; changes in the availability and cost of labor; significant increased logistic costs, including but not limited to inflationary pressures; 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; and the effects of changes in tax laws and related guidance and regulations that may be implemented and other risks detailed in the company 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 27, 2020 and Quarterly Report on Form 10-Q for the fiscal quarter ended June 27, 2021.&nbsp; The company assumes no obligation to update any of these forward-looking statements.

Starbucks Makes Historic Investments in its Partners, Building on Long-Time Belief that Success is Best When Shared - Starbucks Stories

Starbucks Makes Historic Investments in its Partners, Building on Long-Time Belief that Success is Best When Shared

Starbucks today announced a wave of investments for its partners, building on its 50-year history and tradition of listening and learning, while investing its success back into its people.

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Starbucks Makes Historic Investments in its Partners (Employees)

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A letter to Starbucks partners (employees) from Rossann Williams, evp, president North America: More investments for store partners in pay, labor, training, equipment and technology

I was so proud to join Starbucks 17 years ago, because I was joining a different kind of company whose values matched mine. A purpose-driven company with deep respect, care and love for its employees (who we embrace as partners), its customers and communities. Our founder Howard Schultz believed in the dignity of the human experience, in building a successful company, and that our success should always be shared. And under Kevin’s leadership, we all remain committed to this today. This has always been us, and it will always be what we do. Partners always work together to understand the challenges and opportunities of the day. We always reimagine and trailblaze some of the most amazing benefits and services of any retail company in the country – from providing health care to part time as well as full time partners, to annual stock grants for every partner, to 100% college tuition coverage, mental health support and even free Spotify. &nbsp;We always challenge ourselves: what’s needed now, what more can we do, and what are our biggest dreams? And we always start with our partner experience first. Always.

I am proud of how we continue to work together to protect our business and support our partners through the most challenging 18+ months of our lives in this ongoing pandemic. When others were closing stores and laying off people, we doubled down with COVID-19 pay and benefits AND we made a record investment in partner wages and experience. And today, based on what we’ve seen and heard across the country, we’re announcing yet again one of the biggest partner investments in our history! I am forever proud and grateful to be your partner and I’m pleased to share the investments we’re making in our partner experience this fiscal year across the country:

We want to thank and reward partners who have been with us the longest. You have helped build this company and supported us over two of the most challenging years. In late January, most baristas and shift supervisors across the country with two or more years of service will get up to a 5% raise, and most hourly partners with five or more years will get up to a 10% raise. This is in keeping with our long history of investing in our partners.

In December 2020 we announced that we would raise our minimum wage to $15/hour nationally and in Summer 2022 we will have achieved that goal. This will of course support current partners, and importantly it will also reinforce Starbucks as an employer of choice for future partners as we enhance recruitment efforts in the challenging labor market that we – like other retailers – face.&nbsp; And when we make this increase to $15/hour in markets that are not already at that level, we will ensure partners with two or more years of service are paid above their market start rate. This means baristas will make between $15 and $23/hour based on market and tenure, and we will maintain a 27% difference between Barista and SSV start rates. And we continue to offer career development opportunities like the barista trainer program and promotions to grow earning potential.

Our wage increases from Dec. 2020 to the Summer of 2022 will mean at least a 17% increase for partners, and at least 20% for tenured partners, in two years. I share all this only to reaffirm our belief that investing in our partners is not a cost, it’s an opportunity – and we intend to let our shareholders and peers know the same.&nbsp;

We’re adding hourly recruiting specialists in the regions, extending the $200 referral bonuses, and redesigning Barista Basics with added training time as well as plans to add funded practice shifts for new hires. The positive responses we’re getting from partners around the country tells us we’re on the right track – thank you! In addition, we are learning from the 40 stores we temporarily repurposed for training needs in markets around the country and will continue to build on this work.

We’re making more cold beverages than ever before so last month, we launched a major update to our labor model to reflect the demand, the time it takes to make these customized drinks, and the prep (from cold brew prep to nitro kegging). What that means is a more accurate forecast you can trust, and a better staffed shift. To better ensure staffing on a day-to-day basis, we’re also testing solutions like an app to help partners communicate and make sure there is coverage for all available shifts, which should reduce the impact of call outs. Our labor team, made up of the best data analysts and former store partners, and our Store Manager Council, is shaping this work.

Wages and benefits are important, and so is the day-to-day experience of your work and your store environment. So we’re moving fast to get Mastrena IIs, our new Cold Brewers and MerryChef ovens in every store, MacBooks to ASMs and SMTs by December, and rolling out more Handheld Order Points, Playbuilder, My Daily upgrades and Automated Ordering (which is saving stores 25 minutes a day!). We’re testing Cold Beverage Station redesigns now in Tryer and will begin testing in stores in January to make it easier to handcraft drinks and connect with customers. Behind the scenes, we’re also testing ingredient dispensers and sustainable water dispensers, thanks to your ideas.

Every decision and every investment we make is in partnership with you. We are listening and learning in every market where we operate – in partner roundtables, open forums, Workplace, Partner Hub, Partner Experience Surveys and through 1:1s with you and your leaders. Our goal is to create the best, and safest partner experience for you. This is why we continue to offer competitive pay, flexible hours, borrowed shifts, paid sick leave, paid vacation, paid family leave, free college, healthcare, stock, 401k plans, childcare, Lyra mental health benefits, transgender benefits, vaccine benefits, Spotify, Headspace, partner networks and more. We want you to know about and use everything Starbucks has to offer to pursue your biggest dreams – whether it’s with us, or beyond!

Your partner experience is our top priority. And the only thing that makes me prouder than investing in you, is what we stand for together. We inspire and nurture the human spirit. We have the opportunity every day to create a different kind of company whose DNA is human connection. One Best Moment at a time, one conversation at a time, one community service event at a time, one smile at a time. The world has never needed inspiration and nurturing more than it does now.

Thank you for all you do, and how much it matters to your fellow partners, your customers, and your communities. It is my greatest honor to be in service of you and our Mission.

A letter to Starbucks partners from Rossann Williams, evp, president North America: More investments for store partners in pay, labor, training, equipment and technology.

Message from Rossann Williams: Investing Our Success in You

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A letter to Starbucks partners (employees) from Rossann Williams, evp, president North America: More investments for store partners in pay, labor, training, equipment and technology.

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