Between April 24 and May 8, 250,000 Starbucks partners at 10,000 stores in North America are meeting during two-hour sessions to focus on the art of connection and reflecting on Starbucks’ new <a href="https://stories.starbucks.com/mission/">mission</a>: With every cup, with every conversation, with every community – we nurture the limitless possibilities of human connection. &nbsp;

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These gatherings are part of a long tradition of bringing partners together during key moments in the company’s history. Following a successful year-long reinvention and the unique six-month immersion of Starbucks chief executive officer Laxman Narasimhan, partners across thousands of stores are now learning about the important role they’ll play in co-creating the future of Starbucks in a way that honors the company’s heritage while modernizing it for the times.&nbsp;

Below, we’re sharing dispatches and <a href="https://starbucksnewsroom.wistia.com/medias/tkr6mbh0wj">downloadable assets</a> from some of the first sessions to be held during the week of April 24. Go <a href="https://stories.starbucks.com/stories/2023/coming-together-all-starbucks-partners-in-us-canada-to-participate-in-2-hour-connection-sessions/">here</a> for the official FAQ. All stores are adapting a three-part agenda to fit their individual store’s needs.

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On the evening of April 25, store manager Louis closed his café in Glendale, Arizona three hours early so that more than 20 partners could be present with each other without interruption. For some, it was the first time they’d been able to meet in person with colleagues working opposite shifts.

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“Today is about exploring what connection means to us, among our community and between each other,” he told partners as they enjoyed pizza and casual conversation. “This session is only the beginning. We can and should carry everything we learn forward into our next shift.” 

Louis and assistant store manager Zee laid out the agenda and led the group’s first tasting of Starbucks® Green Apron Blend™, a new and unique Starbucks® Blonde roast consisting of beans sourced from Latin America and Africa, with notes of honeybell orange and graham cracker. Partners smelled, slurped and shared their thoughts aloud whilst pairing the coffee with chocolate croissants and Marshmallow Dream Bars. The crowd reaction? “Citrus!” “Acidic!” “Really good!”

Via the store laptop and portable devices, store partners gathered around each screen to hear a message recorded especially for them from Narasimhan laying out the company’s future, its new mission – and each barista’s role in helping to foster the limitless possibilities of human connection over coffee.&nbsp;

“I like it because it’s very simple,” Louis told his team. “When I’m not having the best day, I can go back to this and know: This is why I’m doing what I do.” 

During the discussion that followed, partners at every level responded to the new mission as well:

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"It’s an achievable reality of what we do.” – John, shift supervisor

"And I think that’s the biggest shift that I’ve seen in the last six months to a year – where it feels really inclusive to what connection means to us. In the past, it felt like connection had to mean the same thing all around but now we’re being given the space for us to find how we connect with customers.” – Felicia, an Arizona district manager

“Every Starbucks is different. The experience we have here is infinitely different from experiences we have in other stores. Every single one of those groups of customers is different, which is why I’m grateful to be in the café I’m in.” – Staj, barista

About 30 minutes away in Phoenix, store manager Matty conducted his All-Store Partner Session offsite in a neighboring café that had more space for his team of more than 20 partners to spread out and talk in small groups. He brought in his own television set so that the group could watch Narasimhan’s message on one screen together. Assistant store manager Keith facilitated leveraging a wide-ranging kit filled with connection exercises sent out to stores ahead of the session.

For part 2 of a three-part agenda, the partners bonded around circular tables, got up on their feet to move around, and shared lots of smiles as they reflected on themselves – and shared their answers in a supportive space. Through speed networking and writing, partners responded to numerous prompts, including the following:

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Partners said attending the session helped them to reset their role in the store and, more importantly, their connection with one another.&nbsp;

“Sometimes it‘s connecting with your peers and your partners that, you know, can be difficult or sometimes you're so focused on the customers and so focused on your job that you can neglect each other, it‘s easy to put our needs on the back burner. I think having that time today to connect and get to know each other really was so amazing.” – Sheila, barista

“I learned what their strengths are, and they also kind of helped me see what my strengths are just by working with me for the short amount of time that they have.” – Anna, barista&nbsp;

“And how are they going to be affected by the decisions we make with each other while we're at work. I learned that a lot of us are here for the same reason, and we like being here because we bring each other up.” &nbsp;– Nickolas, barista

Across North America, after the teams got to know each other, they shifted to the final section of the All-Store Partner Session during which they began to talk about connecting with customers. &nbsp;

In Katy, a suburb just outside of Houston, partners in store manager Kirsten’s café gathered late into the evening. Over croissants, conchas and cupcakes – paired with Starbucks Green Apron Blend brewed using multiple methods – the group cheered one another and voiced their commitment to creating the best experience possible for every person who walks through their doors. &nbsp;

Around small tables usually reserved for customers, baristas, trainers and shift managers worked through a variety of exercises together. A card set shared with every store laid out various scenarios they might encounter to generate robust discussions around ways to connect with customers of every profile. Each partner filled out a worksheet asking them to think about cultivating new connections.

As you think about owning your craft of connection, consider: &nbsp;

For many partners who went in thinking the session would be all about training, it was a welcome surprise to hear the new mission directly from the ceo and to focus on the art of connection.

“Some of our regulars, you ask them how their day is going and sometimes they're having a bad day, but sometimes you might be having a bad day. And because you're constantly interacting with people, they want to give back to you. For me, having this two-hour meeting was really important. And, I took with me the fact that people and interactions are really important, and that I want to grow as a person by growing those interactions with people.” – Arousha, barista

“I just want to spark joy. I love walking into a place, feeling welcome. It's nice just recognizing people, making them feel super famous when they walk in one of our regulars every day. It's a chorus of people. Love it.” – Sean, barista

“It's just a beautiful experience. I'm pretty terrible with faces and names, so I'm very excited to see partners give me tips on how to better remember people, their drinks, their names, their faces.” – Teagan, shift supervisor

“Connection means to me bonding on the soul level. Like it goes deeper than just, ‘How's the weather today?’ It goes more into, ‘How are you, who are you as a person’? One cup, one coffee, one neighborhood at a time. It’s all part of trying to relate to someone on a more human level. Today, I committed to focusing more on the little things. The little things matter to me, so I know they must matter to other people.” – Mia, barista

“I found that making connections with not only the customers, but with the people that I work with, it improves the quality of our service and of genuinely just coming into work, knowing that I can come into work and I'll enjoy whoever I'm working with, or knowing that I can have people other than the people at home supporting me.” – Avery, barista trainer

“I do enjoy working with them and it does help me connect better with the customers in the long run.”&nbsp;– Cassandra, barista

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Between April 24 and May 8, 250,000 Starbucks partners at 10,000 stores in North America are meeting during two-hour sessions to focus on the art of connection and reflecting on Starbucks new mission.

Inside Starbucks: A look at how partners across U.S., Canada are connecting over coffee, embracing new mission

Stories to inspire and nurture the human spirit

Starbucks Stories

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Starbucks Corporation

Inside Starbucks: A look at how partners across U.S., Canada are connecting over coffee, embracing new mission 

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Introduces Three-Year Financial Roadmap, Delivering Annual 7-9% Comparable Store Sales Growth, 10-12% Revenue Growth, and 15-20% Non-GAAP EPS Growth

SEATTLE – Starbucks (NASDAQ: SBUX) today hosted its biennial Investor Day in Seattle where interim chief executive officer Howard Schultz, chief financial officer Rachel Ruggeri, and Starbucks leaders showcased the company’s Reinvention plan to an in-person audience of more than 150 investors. Presentations highlighted decisive actions and targeted investments in partners, customers, and stores that are expected to accelerate the company’s long-term growth, progressively expand operating margin, and drive high-teens non-GAAP EPS growth annually through fiscal 2025.

“As we execute on our Reinvention plan, we are building on our 51-year history of market leading innovation to position our business and our brand for the next chapter of growth,” said Schultz. “Guided directly by our partners, we have already begun to take action on an inspired roadmap to build the future of Starbucks, all while staying true to our mission of uplifting communities through a shared love for coffee and further extending our coffee leadership and innovation. I am confident that our partners and world-class leadership team will capture the significant global growth opportunity ahead, unlocking value for all our stakeholders.”

Schultz also introduced incoming ceo Laxman Narasimhan, who shared his enthusiasm for the Reinvention plan. Narasimhan will officially join Starbucks on October 1, 2022 and will work closely with Schultz before assuming the ceo role and joining the Board in April 2023. Schultz will remain as a member of the Board after the transition.

Starbucks Unveils Roadmap for Accelerated EPS Growth

In connection with its Reinvention plan, Starbucks introduced a framework for accelerated earnings growth over the next three years, underpinned by enhanced comparable store sales growth, increased store count growth, continued margin expansion, and disciplined capital allocation.

“Starbucks is a growth company, and our accelerated expansion is a direct reflection of the expected returns from our Reinvention plan,” said Ruggeri. “By making strategic and highly targeted investments to drive value for partners, Starbucks will also drive value for customers and shareholders, while managing costs, improving margins, and elevating the Starbucks Experience for all stakeholders.”

From fiscal 2023 to fiscal 2025, Starbucks expects comparable store sales growth to be in the range of 7% to 9% annually, both globally and in the U.S., up from the previous range of 4% to 5%. In China, Starbucks expects outsized comparable store sales performance in fiscal 2023 and fiscal 2024, as the market laps the severe impact of COVID-related lockdowns, with growth normalizing in the new range of 4% to 6% in fiscal 2025, an increase from the prior range of 2% to 4%, reflecting an increased digital capability and confidence in the vast opportunity ahead in this key growth market.

The company’s global store portfolio is expected to grow by roughly 7% annually on a net basis from fiscal 2023 to fiscal 2025, up from the previous estimate of approximately 6%. This increase is driven largely by accelerated growth across the U.S. portfolio as purpose-built store formats in conjunction with the Reinvention plan is expected to deliver net new store growth of 3% to 4% annually, compared to approximately 3% as previously estimated. Starbucks also expects to continue robust store development in China, with net unit growth of approximately 13% annually. Globally, Starbucks expects to approach 45,000 stores by the end of 2025, and is well on track to reach approximately 55,000 stores by 2030, as projected at its 2020 Investor Day.

Starbucks now expects global revenue growth in the range of 10% to 12% annually from fiscal 2023 to fiscal 2025. This represents an improvement from the company’s previous range of 8% to 10%, driven by priority investments that elevate partner engagement and store efficiency, industry-leading digital programs, an engaged and growing Starbucks® Rewards membership base, game-changing product innovation, and a rapidly expanding global footprint. The company expects solid margin expansion in fiscal 2023 with progressively more expansion in fiscal 2024 and fiscal 2025. Non-GAAP EPS growth is expected to be in the range of 15% to 20% annually through fiscal 2025, representing an improvement from the previous range of 10% to 12%.

Starbucks plans to resume its share buyback program reinstituting a healthy return of shareholder capital, yielding an annual EPS benefit of approximately 1%, net of incremental interest, beginning in fiscal year 2024. Between dividends and share buybacks, the company expects to return approximately $20 billion to its shareholders in the next three years.

Centering the Partner Experience in a Thriving Network

Starbucks partners are at the core of the Reinvention plan, as the company recommits to investing in its partner base with a three-pronged model of support that empowers partners to thrive at work, thrive as individuals, and thrive together. Specifically, by investing in partners through recruiting, training, and onboarding, partners will be better empowered and equipped to deliver high-quality customer experiences, uplifting brand affinity and customer loyalty. This, in turn, enables increased value back to partners through wages, benefits, programming, and tools for continued personal growth, which are expected to increase retention and productivity.

For fiscal 2023, Starbucks has identified a number of near-term solutions that will be implemented to ensure a thriving partner experience:

This important work is beginning with Starbucks over 9,000 U.S. company-operated stores. Starbucks then plans to rapidly implement the most effective and scalable best practices to its other U.S. and global stores.

Unlocking Experiential Convenience for Customers

As part of the Reinvention plan, Starbucks is unlocking the intersection of convenience and connection by introducing enhancements to the customer experience across retail and digital that meet customers wherever they are, expanding the Third Place experience beyond the physical store. As part of these efforts, Starbucks is investing in purpose-built store concepts, delivering beverage innovation, and expanding effortless digital convenience.

Investing in purpose-built store concepts: Starbucks is reimagining the store environment by introducing purpose-built store concepts that meet customers wherever and whenever they want and improve the partner experience. This includes investing an incremental $450M in the existing U.S. store base in fiscal year 2023 with continued investment in fiscal 2024 and 2025. Starbucks expects these investments will create efficiencies, unlock capacity for partners, and enable increased throughput to support increasing customer demand. &nbsp;

With new store economics expected to continue delivering 50% return on investment and 25% cash margin, Starbucks looks to accelerate U.S store growth to 3-4% annually.&nbsp; The company sees tremendous opportunity to further diversify and expand formats across cafes, pick up, delivery-only and drive-thru only locations. The diversified portfolio of stores and customer channels such as Mobile Order &amp; Pay will enable Starbucks to further meet its customers whenever and wherever they want. &nbsp;

Delivering beverage innovation: To improve partner and customer experiences, Starbucks has developed the Siren System, a proprietary new equipment innovation designed to meet the growing demand for customization of hot and cold beverages and warm foods. &nbsp;As part of the Siren System, Starbucks has redesigned its cold beverage station, which significantly reduces the time and number of steps to make cold beverages, unlocking productivity gains and ultimately freeing up time for partners to connect with customers. In addition, Starbucks is developing a new way of extracting cold coffee and espresso with the Cold Pressed Cold Brew system. This new, proprietary technology delivers cold press coffee in a matter of seconds and in fewer than four steps, a step-change improvement when compared to today’s cold brew which is steeped for 20 hours and takes more than 20 steps to make. The Cold Pressed Cold Brew will begin testing in stores in fiscal 2023.

Starbucks is also elevating the quality and craft of hot brewed coffee with the launch of Clover Vertica. Using proprietary Clover technology, Clover Vertica offers every customer a freshly ground, freshly brewed cup of hot coffee in just 30 seconds. Starbucks has already begun rolling out this equipment to stores and expects it will be fully deployed to all U.S. stores in the next three years.

Expanding effortless digital convenience: Today’s customers are increasingly prioritizing the effortless, experiential convenience and personalization enabled by Starbucks Rewards, Mobile Order &amp; Pay, and Starbucks Delivers. To make it even easier for customers to get Starbucks when and where they want, Starbucks is growing its Starbucks Delivers program in the U.S. with a new partnership with DoorDash, which will expand to a national scale alongside UberEats in fiscal 2023.

As previously announced, Starbucks is also evolving its Starbucks Rewards program with Starbucks Odyssey, a Web3-enabled experience that will bridge the physical and digital customer experience. Through Starbucks Odyssey, customers will unlock a new generation of experiential benefits – both digitally and in-person – and become a part of a digital community built on human connection.

Accelerating Starbucks Leadership Position in International

Starbucks International segment continues to accelerate growth for the company, with two-thirds of global retail growth over the next three years expected to come from its international business. Underpinning this strong foundation and ongoing momentum is the strength of the licensing model, acceleration of the digital Starbucks Experience, and the purpose-driven growth agenda in China.

Strength of the licensing model: Licensed stores represent more than 50% of the Starbucks International portfolio and are driving a significant portion of future growth through best-in-class operations experience, paired with unparalleled expertise in the markets they operate and the needs of their local customers. Under Starbucks licensing model, licensees are positioned as business partners, who not only operate stores but also invest in and drive innovation at the company – for example, through region-specific beverages – and growth in their markets and across the globe. The licensing model is a key competitive advantage and enabler for Starbucks, culminating in higher return on invested capital and positioning the company to realize the full potential of the brand. In total, Starbucks has over 17,000 licensed stores including 6,500 in the U.S.

Acceleration of the digital Starbucks Experience: While International is still in the early stages of digital expansion, Starbucks has the foundation in place to significantly accelerate growth with 28 million active Starbucks Rewards members internationally. Today, just over 10% of transactions in international licensed stores originate digitally. To accelerate the rollout of the digital Starbucks Experience around the world, Starbucks is unveiling Starbucks Digital Solutions, a platform created exclusively for our International markets to deliver a consistent digital experience for partners and customers in every location.

Purpose-driven growth agenda in China: Even as Starbucks second largest market, China’s coffee market is still in its early stages, and Starbucks is evolving its growth framework in the market to capture its full growth potential. Through the flywheel of continued store expansion, growth in omni-channel, ongoing digitization efforts, increased customer and partner engagement, and the extension of coffee craft and innovation leadership, Starbucks will drive meaningful growth in China, as sales are expected to nearly double over the next three years, while store count is expected to grow by 50%, reaching 9,000 stores.

Long Runway for Growth in At-Home and Ready-to-Drink

Through Starbucks leadership position in the at-home and ready-to-drink channels, the company reaches customers across every major coffee segment, providing an elevated experience wherever its customers are. Today, Starbucks serves 300 million consumer occasions per week across 86 markets in channels outside of its retail stores. Starbucks sees significant opportunity for further growth through portfolio expansion, innovation and leveraging Starbucks partnership expertise. In at-home coffee, Starbucks is expanding its reach with products that highlight its strengths in locally relevant ways, such as the recent launch of Starbucks super-premium mini cups in China, and the upcoming launch of Starbucks® Reserve on Nespresso Vertuo. Starbucks is also innovating and introducing new bold flavors and formats in ready-to-drink, entering the energy category with the launch of Starbucks Baya™ Energy and bringing the Starbucks® Pink Drink, inspired by a global customer favorite, to a convenient new ready-to-drink format.

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A replay of the webcast and slides shown during the event’s presentations will be available on the&nbsp;<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Finvestor.starbucks.com%2Fevents-and-presentations%2Fcurrent-and-past-events%2Fdefault.aspx&amp;esheet=52748568&amp;newsitemid=20220613005808&amp;lan=en-US&amp;anchor=Events+%26amp%3B+Presentations&amp;index=1&amp;md5=8a8881d61fc82bddf6563c5c4ba8fe25">Events &amp; Presentations</a>&nbsp;section of the company’s website&nbsp; on Wednesday, September 14, 2022.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with nearly 35,000 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">www.starbucks.com</a>.

Non-GAAP Financial Measures

Certain financial measures included in the release are not measures of financial performance under U.S. generally accepted accounting principles (“GAAP”). Certain non-GAAP measures such as earnings per share were not reconciled to the comparable GAAP financial measures because the GAAP measures are not accessible on a forward-looking basis. All forward-looking non-GAAP measures may exclude estimates for acquisitions, divestitures, restructuring, and other items, which are fluid and unpredictable in nature. The company is unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures with sufficient precision without unreasonable efforts because the company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. The unavailable information could have a significant impact on the company’s GAAP financial results. References in the release are on a non-GAAP basis unless otherwise noted, or if there's no non-GAAP adjustment related to the metric.&nbsp;

Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “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 trends in or expectations relating to the effects of our existing and any future initiatives, strategies, investments and plans, including our reinvention plan, as well as trends in or expectations regarding our financial results and long-term growth model and drivers; our operations in the U.S. and China; our environmental, social and governance efforts; our partners; economic and consumer trends, including the impact of inflationary pressures; impact of foreign currency translation; strategic pricing actions; the conversion of certain market operations to fully licensed models; our plans for streamlining our operations, including store openings, closures and changes in store formats and models; expanding our licensing to Nestlé of our consumer packaged goods and Foodservice businesses and its effects on our Channel Development segment results; tax rates; business opportunities and expansion; strategic acquisitions; our dividends programs; commodity costs and our mitigation strategies; our liquidity, cash flow from operations, investments, borrowing capacity and use of proceeds; continuing compliance with our covenants under our credit facilities and commercial paper program; repatriation of cash to the U.S.; the likelihood of the issuance of additional debt and the applicable interest rate; the continuing impact of the COVID-19 pandemic on our financial results and future availability of governmental subsidies for COVID-19 or other public health events; our ceo transition; our share repurchase program; our use of cash and cash requirements; the expected effects of new accounting pronouncements and the estimated impact of changes in U.S. tax law, including on tax rates, investments funded by these changes and potential outcomes; and effects of legal proceedings. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: the continuing impact of COVID-19 on our business; 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 and efficacy of such restrictions; the resurgence of COVID-19 infections and the circulation of novel variants of COVID-19; 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; new initiatives and plans or revisions to existing initiatives or plans; our ability to obtain financing on acceptable terms; the acceptance of the Company’s products by our customers, evolving consumer preferences and tastes and changes in consumer spending behavior; partner investments, changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts; failure to attract or retain key executive or employee talent or successfully transition executives; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business including any potential negative effects stemming from the Russian invasion of Ukraine; 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 our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

“As we execute on our Reinvention plan, we are building on our 51-year history of market leading innovation to position our business and our brand for the next chapter of growth,” said Schultz.

Starbucks Enters New Era of Growth Driven by an Unparalleled Reinvention Plan

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When Starbucks opened its <a href="https://stories.starbucks.com/stories/2017/hidden-history-at-starbucks-pike-place-market-store/">first store in Pike Place Market in 1971,</a> it didn’t serve lattes. But it soon became a hub of connection, a place to sample a cup of Sumatra coffee or learn about beans from Latin America. In 1987, Starbucks expanded into a European café model with added seating and espresso beverages. Customers lingered in stores, even if they had no one to meet for the simple experience of being met with a friendly face and taking a moment to pause in the day. There wasn’t really a term for what was happening until a few years later, in 1989, when sociologist Ray Oldenburg coined the term “third place,” describing a place beyond home and work where people could gather, relax and talk.

Fast forward 35 years, and as the world has evolved, so has the Third Place. Starbucks stores are serving more people each day than ever, with customers often ordering on their phones instead of at the counter. The menu has grown from just a handful of drinks to dozens, with stores built for mostly hot beverages straining to meet the demand for more customized drinks and cold beverages. And food is an increasingly important part of the mix – what was once a case of mostly breakfast pastries case is now a food platform that includes warmed sandwiches, available all day long.

As Starbucks is <a href="https://stories.starbucks.com/stories/reinventing-starbucks/">reinventing the company,</a> it is also reimagining the Third Place – keeping coffee and connection at the center.

“Today we find ourselves at another unique moment; a moment that challenges us to reinvent and think differently,” said John Culver, group president, North America and chief operating officer. “Our partners have come to expect more from us. Our customers have come to expect more from us.&nbsp; And it is clear our physical stores must modernize to meet this moment.”

Culver and Brady Brewer, Starbucks executive vice president and chief marketing officer, shared an inside look at the company’s plans for the evolution of the Third Place at the company’s 2022 Investor Day conference on Tuesday in Seattle.

“When we think about our existing store portfolio and our investments, they must deliver in a few critical areas,” Culver said. “Reducing the level of complexity and making work easier for our partners, enabling stronger engagement and connection between our partners and the customers they serve, and delivering experiential convenience, in a way only Starbucks can.”

Purpose-built store design

In July, chief executive officer <a href="https://stories.starbucks.com/stories/2022/a-message-from-howard-schultz-the-next-chapter-of-starbucks-reinvention/">Howard Schultz announced five strategic shifts</a> Starbucks will make as part of its Reinvention plan to adapt to the changing needs of customers and store partners. As an example, while customers used to primarily order hot beverages, now that’s shifted to cold year-round. In the summer, nearly 80 percent of the drinks ordered are cold. And, requests for customizations have risen dramatically in recent years with two in three drinks now being customized by adding more espresso shots, flavors and customers increasingly choosing plant-based milks or cold foam.&nbsp;

One of the strategic shifts Schultz announced is to “reimagine our store experience for greater connection, ease and a planet positive impact.” Starbucks purpose-built store design approach will help modernizing physical stores to serve the increasing demand while creating an environment that is inclusive and accessible, through the <a href="https://stories.starbucks.com/stories/2021/starbucks-greener-stores-accelerate-global-movement-towards-a-more-sustainable-future/">lens of sustainability</a>. To help drive innovation, Starbucks has turned to the team of R&amp;D experts and baristas working side-by-side in Starbucks Tryer Center, to help streamline the work behind the counter, and enable more time for genuine human connection.

Next year, Starbucks will invest an incremental $450 million in North America, including modernization of existing stores through new equipment that enables greater efficiency and reduced complexity for store partners.&nbsp;The company also plans to add 2,000 net new stores in the U.S. by 2025, diversifying the portfolio of stores across cafes, pick up stores, drive thru-only, and delivery-only locations to meet Starbucks customers whenever and wherever they want.

Brewer added, “As we drive even more demand ahead, we are enabling our stores to handle even more capacity, while significantly reducing the effort required from our partners, so that we can enable partners to focus on what they love doing – crafting the world’s best coffee and connecting with customers.”

Starbucks is reimagining the coffee experience with breakthrough beverage innovation that is elevating coffee craft and quality. Whether the coffee is hot or cold – Starbucks is turning to proprietary, patented technology invented in-house, like the new Clover Vertica™, which offers every customer a freshly brewed cup of coffee in just 30 seconds.

“Coffee is at the center of who we are and remains on the forefront of anticipating what customers love and our partners are proud to deliver,” Brewer said.

Elevating experiential convenience

The Third Place has never been defined solely by a physical space, it’s also the feeling of warmth, connection, a sense of belonging Starbucks. Digital technology is helping augment and extend that feeling of connection with customers – whether they are in Starbucks stores, in their cars, on their doorsteps.&nbsp;

One way Starbucks is doing this is through Mobile Order on the Starbucks app. Starbucks is enhancing Mobile Order to make it easier for customers to order, anticipate when their order will be ready, and make it easier and more efficient for partners to serve mobile order customers, eliminating some of the stress at peak times. Mobile ordering is also being extended to more licensed locations at airports and grocery stores.

The company also unveiled Starbucks Odyssey, a new experience powered by Web3 technology that will foster connection and unlock access to new experiential benefits and immersive coffee experiences for Starbucks® Rewards members and partners in the U.S. Starbucks is one of the first companies to integrate Web3 technology with an industry-leading loyalty program at scale, while creating a community online that will enable new ways for Starbucks to engage with its members and its partners. As of Monday, customers and partners are now able to join the <a href="http://waitlist.starbucks.com" target="_blank" rel="noreferrer noopener">waitlist</a> for a chance to be among the first to receive access to the Starbucks Odyssey experience, which will launch later this year.&nbsp;

“We have a heritage of continuously adapting how we serve customers, anticipating where they are going and innovating to take them there,” said Brewer. “Connection is who Starbucks has always been.”

During Starbucks Investor Day, company leaders shared how Starbucks is modernizing its stores and extending its Third Place connection beyond its walls.

Reimagining the Third Place: How Starbucks is evolving its store experience

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Our aspiration is to be people positive—investing in humanity and the well-being of everyone we connect with, from our partners to coffee farmers to the customers in our stores and beyond.

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Coffee is at our heart, inspiring our craft and driving innovation—in our drinks, our food, our stores and new ways we bring the Starbucks experience to you wherever you are.