Starbucks is setting its sights on expansion and cost savings to solidify its position in the global market

Starbucks, the renowned coffee chain, is focusing on global expansion and cost savings as it seeks to solidify its position in the global market. Starbucks CEO Laxman Narasimhan announced an ambitious plan to increase the brand’s global store count to 55,000 by 2030 during the company’s “Reinvention Update and Holiday Launch” conference.

To achieve this goal, Starbucks plans to pursue an aggressive growth strategy by enhancing the efficiency of its cafes and strengthening its digital business and rewards program. The company aims to accelerate renovations in existing stores while opening new locations catering to on-the-go customers, including double-sided drive-thrus. Additionally, Starbucks aims to double its current base of 75 million rewards members over the next five years, collaborating with partners in the finance and hospitality sectors.

Narasimhan highlighted that the cornerstone of this strategy is an increased focus on efficiency, with Starbucks targeting over $3 billion in cost savings. A significant portion of these savings is expected to come from improvements in the supply chain. Starbucks also plans to enhance barista compensation by providing more hours and increased wages.

The commitment to growth and efficiency is evident in Starbucks’ goal to expand its global store network from the current 38,000 to 55,000 outlets by the end of the decade. This ambitious plan was reiterated in Starbucks’ recent investor presentation, which marked the first event of its kind since founder Howard Schultz’s third tenure as CEO. These growth initiatives led to a 9.5 percent increase in Starbucks’ stock price, reversing a year-to-date decline in the first ten months of 2023.

Previously, Starbucks had unveiled a comprehensive plan to revamp its cafes, aimed at helping baristas manage increased workloads due to the significant shift toward online ordering and heightened personalization. Starbucks’ Chief Financial Officer Rachel Ruggeri revealed that the company is committed to investing $1 billion in fiscal year 2024, primarily to boost wages, upgrade equipment, and enhance digital and supply chain operations.