On the heels of Starbucks 6,000th store opening
in China, Howard Schultz, Starbucks founder and chairman emeritus,
fulfilled a promise to visit and celebrate the partners of
Starbucks fastest growing region.
Howard Schultz stood before the ballroom full of Starbucks
(NASDAQ: SBUX) partners (employees) in Beijing with one ask: Open
your hearts to each other.
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Coming Together (Photo: Business
Wire)
“Being authentic and being vulnerable is a strength, not a
weakness. Being open and honest and sincere is a strength,” Schultz
said at the Partner Open Forum, attended by 1,000 partners in
person and another 15,000 who joined virtually. “Starbucks is at
its best when we are embracing our humanity. And this whole room
right now is based on that, our common humanity.”
The Starbucks founder and current board member was in China this
week on the heels of Starbucks 6,000th store opening in China to
fulfill a promise to visit and celebrate the partners of Starbucks
fastest growing region.
Starbucks opened its first store in China in 1999 and has a rich
history in the market based on cultural connection. In addition to
the Partner Open Forum, this week Schultz visited stores to meet
partners, to see the ways they are connecting with customers with
the newly launched curbside service, and to hold a fireside chat
with students at Peking University.
“There is a unique, loyal connection between Starbucks and the
Chinese people. As I meet with partners and the China community, I
am reminded how coffee is an international language, and it’s truly
been the driving force for how we connect with our customers in the
region,” said Schultz. “I am extremely proud of our team in China
and our 60,000 Starbucks partners who exemplify the responsibility
of wearing the green apron. We particularly saw their dedication
during the three years of the pandemic, and they continue to show
up for one another while delivering a world-class customer
experience every day.”
Coming Together
During the Partner Open Forum on Monday, Schultz talked about
the love and responsibility he feels for all Starbucks partners and
his appreciation for Belinda Wong, Starbucks China’s chief
executive officer and her team.
As the company expands its footprint across the region, partners
continue to be at the core of the Starbucks Experience in China.
Since the beginning, Starbucks China’s mission has always been to
take care of partners and their families, and help them realize
their goals and career aspirations, he said.
During the pandemic, as China and other parts of the world
experienced prolonged periods of shutting down, Wong and other
leaders focused on prioritizing the health and welfare of partners
and their families.
“It’s very easy to be a leader when you have the wind at your
back. But a true leader – and in this case, the leadership team of
China, shows up with their heart and their conscience and their
commitment when the wind is in their face, when the challenges are
so great,” he said. “And I’m so proud of the team and how we all
showed up for each other at a time that was so excruciating.”
Schultz credited the partners for bringing customers back when
Starbucks stores reopened. “I knew in my heart that Starbucks would
come roaring back in China because of the people in this room, and
the 60,000 partners that you are representing, who wear the green
apron,” he said. “And for that, I, with love in my heart, thank you
so very much. Because I knew that when the pandemic ended,
Starbucks would return to not only a healthier place, but a
stronger place. And if anyone ever doubted that, they should be in
this room right now and witnessing the extraordinary love that is
in this room that you can’t invent.”
During the open forum, partners shared their personal stories.
One partner, who joined the company last August, shared that
Starbucks is a place where they feel like they truly belong.
“We know in the world, there is much resistance, but in
Starbucks, whether its your ethnicity, gender or educational
background, you join a team, enjoy your time, enjoy your work in
Starbucks,” the partner said.
Schultz stressed the importance of partners bringing their true
selves to work and to support others in doing the same. “You
understand that Starbucks Coffee Company’s best days are not
because we’re chasing money, but our best days are because we are
lifting each other up,” he said.
Conversation with China’s Gen Z
Investing in education is deeply rooted in Starbucks mission
globally. This week, Schultz led a fireside chat with 300 students
at Peking University, one of the top public universities in China,
to discuss the history of Starbucks China and the importance of
putting people over profit. Students also had a chance to taste
coffee made with different brewing methods by Starbucks
partners.
“I’ve talked to Starbucks partners and customers from all over
the world and at the end of the day, it’s clear to me that we are
more similar than we are different,” he told the students. “We all
have the same dreams: to make our families proud, have joy in our
lives and to make an impact in the world. Coffee brings people
together. It’s a sense of community, it’s a human connection, it’s
humanity. To be in the people business, you have to know your
people and connect them to a core purpose and a reason for being
that they can see themselves in.”
Listening and Learning
At both Starbucks Kerry Center location, the company’s first
flagship store in Beijing in 2013, and Heritage Culture store,
Schultz had the opportunity to meet a number of partners, and thank
them for their resiliency and commitment to each other and their
communities. Schultz learned about the many ways partners lifted
each other up through small and big acts.
One partner, who has been with Starbucks eight years, shared a
story about how one day, early in her career at Starbucks, her
manager pulled her aside and she was nervous until she realized
that her manager knew it was her birthday and wanted to acknowledge
and celebrate it.
“It’s just a little thing,” said Schultz, “but it’s just
acknowledging and recognizing someone for who they are.”
2,500 Greener Stores
Since Starbucks opened its first store in the Chinese mainland
in 1999, the company has focused on not only providing great food
and beverages to consumers, but has also been at the forefront of
retail innovation and sustainability in China.
Starbucks has a goal of operating 2,500 Greener Stores in the
Chinese mainland by 2025. In support of Starbucks 2030 goals of
reducing carbon, water and waste footprints by 50 percent, the
open-source Greener Stores Framework was co-developed with the
World Wildlife Fund (WWF). The framework includes a set of 25
performance-based standards across environmental impact areas such
as energy efficiency, water stewardship, and waste diversion,
designed to accelerate the transformation of retail towards
lower-impact stores.
Shaking Up the Chinese Coffee Ritual
Starbucks Oleato, an innovative alchemy of the finest arabica
coffee infused with Partanna extra virgin olive oil, has rolled out
across more than 60 stores in Asia. As the company continues to
expand its availability, partners in China had a unique opportunity
to taste the company’s latest beverage innovation this week.
While we’re excited to introduce the transformational
innovation, Oleato beverages are not yet available in Chinese
stores.
>>Download Photos
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with more than 36,000 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.
Forward-Looking Statements
Certain statements contained herein are “forward-looking”
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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
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including the impact of inflationary pressures; impact of foreign
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certain market operations to fully licensed models; our plans for
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likelihood of the issuance of additional debt and the applicable
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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
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circulation of novel variants of COVID-19; fluctuations in U.S. and
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and third-party providers to fulfill their responsibilities and
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or beverage-borne illnesses, tampering, adulteration, contamination
or mislabeling; potential negative effects of material breaches of
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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;
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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,
including the Inflation Reduction Act of 2022 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.
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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.
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