Starbucks commits $1bn in investments with focus on employees and stores
On the Starbucks FY2022 Q2 earnings call yesterday, CEO Howard Schultz announced the company will make additional investments in areas such as modernised training and collaboration, and store innovation, bringing total investments to nearly $1 billion in this fiscal year.
The decision, he said, enables Starbucks to meet record customer demand and partner needs in an operating environment deeply impacted by Covid-19.
Schultz said: “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.”
Areas that have been prioritised for upcoming investments include:
Introduction of credit card/debit card tipping by late 2022.
Equipment and technology enhancements, including resolving all “non-critical” repair and maintenance immediately, moving to upgrade all in-store iPads with new models, accelerating roll-out of new equipment like MerryChef Ovens and Mastrena 2 espresso machines.
Launching a modernised recognition programme and expanding a portfolio of upskilling and career mobility programmes.
Starbucks Chief Financial Officer, Rachel Ruggeri commented: “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.”
