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Starbucks Commits US$1 billion in FY2022

Howard Schultz

During the Starbucks Fiscal Year 2022 Quarter Two Earnings call, CEO Howard Schultz announced the company will make additional investments in partners and stores for prioritised areas, bringing the total investments to nearly US$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-19.

“What you will see is the transformation of the Starbucks customer and partner experiences. The transformation will accelerate already record demand in our stores,” says Starbucks CEO Howard Schultz.

“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.”

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.

Partners 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.

The investments designed to transform and elevate the experience of Starbucks partners and customers include the return of the Coffee Master and Black Apron programs, reaffirming and recognising Starbucks partners deep passion for, and commitment to, coffee excellence.

There will be 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 US partners.

There will be additional and more effective training, including doubling the amount of training time for new baristas from 21 June, doubling the amount of training time for new shift supervisors from 30 August, and more training for baristas and supervisors already in roles.

Starbucks has also announced increased pay and support with financial stability.

As previously announced, Starbucks is moving all US store partners to a US$15 per hour effective 1 August, with the average hourly pay at Starbucks nearly $17 per hour nationally.

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