Starbucks has announced plans to add approximately 17,000 new locations by 2030 as part of its ongoing “reinvention” strategy. The expansion will focus on increasing its global footprint, with three out of every four new stores expected to be opened outside of North America. Currently, Starbucks has around 20,200 international cafes and aims to reach a total of 55,000 locations worldwide by 2030. Additionally, the company plans to save $3 billion in costs over the next three years, with $1 billion of those savings coming from making stores more efficient.
The expansion announcement follows Starbucks’ strong fiscal fourth-quarter results, where the company exceeded Wall Street’s estimates for both earnings and revenue. This resulted in a 9.5% increase in the company’s shares. The plan also includes wage increases for baristas, with the goal of doubling their hourly income by the end of fiscal 2025. The company’s “Triple Shot Reinvention Strategy” aims to simplify operations, improve quality and speed of service, and address issues such as complex drink orders and increasing customer expectations.
Former CEO Howard Schultz initially unveiled the reinvention plan, acknowledging past mistakes and the need for improvement. Schultz stepped down from his position in March, handing over leadership to CEO Laxman Narasimhan, who has been driving the execution of the plan. Starbucks aims for annual earnings per share growth of 15% to 20% over the next three years and annual same-store sales growth of 7% to 9%. Although the company’s same-store sales forecast for fiscal 2024 falls slightly short of that range, the rest of its projections align with its targets.
