Starbucks Commits $1 Billion in Fiscal Year 2022 Investments to Uplift Starbucks Partners (employees) and the Store Experience
03 Mai 2022 - 11:27PM
Business Wire
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
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.
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Starbucks 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 fiscal year 2022 alone. (Photo:
Business Wire)
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
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.
- The return of the Coffee Master and Black Apron programs
this Summer, reaffirming and recognizing Starbucks partners
deep passion for—and commitment to—coffee excellence. Additionally,
eligible partners who complete the Coffee Master program will have
the chance to be selected for the Leadership in Origin program at
Hacienda Alsacia, Starbucks coffee farm in Costa Rica.
- More opportunities for partners to connect, be heard and
have a voice, through the launch of a new partner app in August
to create one digital community for all 240,000 U.S. partners,
extending collaboration sessions to support partners, plants,
retail leaders and to every store with dedicated connection time
over the next month.
- Additional and more effective training, including
doubling the amount of training time for new baristas beginning
June 21, doubling the amount of training time for shift supervisors
beginning August 30, and more training for baristas and supervisors
already in role. Enhancements also include a redesigned “First Sip”
barista training program, a newly designed shift supervisor program
and more hands-on practice time for baristas.
- Increased pay and support with financial stability. As
previously announced, Starbucks is moving all U.S. store partners
to a $15/hour floor this summer, effective August 1, and also
adding incremental increases that will apply to all U.S. store
partners, while recognizing and rewarding tenure. On August 1,
average hourly pay at Starbucks will be nearly $17/hour nationally.
All partners hired on or before May 2 will get either a 3% raise or
$15/hour, whichever is higher. Further, Starbucks will continue to
recognize tenured partners. Partners with 2-5 years of service will
receive at least a 5% increase or move to 5% above the market start
rate, whichever is higher. Partners with 5+ years of service will
receive at least a 7% increase or move to 10% above the market
start rate, whichever is higher. On August 1, Starbucks will also
double our planned investments in store manager, assistant store
manager and shift manager pay for leaders hired on or before May 2.
These are one-time investments in base pay in addition to our
planned FY23 raises this fall.
- Continuing to build and offer relevant benefits based on
partner ideas and input, including opportunities to increase
sick time accrual, implementing a new financial stability toolkit
benefit, and implementing tools and solutions to help partners
refinance better student loan solutions.
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
As Schultz and Starbucks leaders continue to meet with and hear
from partners, additional areas of investment have been prioritized
for upcoming investments:
- Introduction of credit card / debit card tipping by late
2022 as ways for customers to further recognize their favorite
baristas.
- Equipment and technology enhancements, including
resolving all “non-critical” repair and maintenance immediately,
moving to upgrade all in-store iPads with new models, accelerating
rollout of new equipment like MerryChef Ovens and Mastrena 2
espresso machines and more.
- Launching a modernized recognition program and expanding
a portfolio of upskilling and career mobility programs.
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.
Implementation
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.
About Starbucks
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
www.starbucks.com
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version on businesswire.com: https://www.businesswire.com/news/home/20220503006344/en/
Starbucks Contact, Media: Maggie Jantzen
press@starbucks.com 206-318-7100
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