Starbucks has announced a new reinvention strategy, “Triple Shot Reinvention with Two Pumps”, which will include multiple paths for long-term growth.
The plan will focus on three strategies: strengthening the company’s digital capabilities, elevating the Starbucks brand, and becoming truly global. Starbucks has also added “two pumps” to the plan: unlocking efficiency and reinvigorating partner culture.
“I am immensely proud of the work we have done so far in reinventing and re-founding the company for its next phase of growth,” says Starbucks CEO Laxman Narasimhan.
To elevate the brand, the company hopes to grow its portfolio with more purpose through better-run stores and accelerated renovations.
“I am excited about our multiple paths to revenue growth and earnings, which should give you confidence in our ability to meet our goals,” said Narasimhan when addressing Starbucks investors in New York City.
“I am honoured to be leading this talented group of over 450,000 green apron partners, including this executive leadership team, to deliver human connection more broadly around the world for the benefit of us all.”
The company hopes to double its 75 million global Starbucks Rewards members within five years, as well as expand digital technology collaborations to elevate the partner and customer experience.
To become more global, Starbucks also plans to accelerate store expansion by reaching 55,000 locations worldwide by 2030.
As part of its plan to unlock efficiency, the company is aiming to generate US$3 billion in savings over three years to deliver returns to shareholders through margin expansion and earnings growth.
Starbucks plans for reinvention were first introduced by founder Howard Schultz at the company’s Investor Day in September 2022.