Starbucks Plans To Open 17,000 New Stores While Cutting $3B In Costs

Starbucks is rolling out new plan that would cut $3B in costs while simultaneously opening an average of eight new stores a day until 2030.

The coffee retailer on Thursday detailed its long-term growth plan, dubbed the Triple Shot Reinvention with Two Pumps, which would focus on three goals: elevating the Starbucks brand, strengthening its digital capabilities and beefing up its global presence, according to a press release.

The company plans to expand its global presence to 55,000 locations by 2030, an increase of 17,000 from the roughly 38,000 it has today. It aims to increase its U.S. store count from 16,300 to 20,000.

In the past five years, the company opened 9,000 new stores, 7,000 of which were outside of the U.S., Michael Conway, group president of international and channel development, said in the release.

“We will become truly global as we create the surround sound of omni-channel strategies in the 86 markets where we sell Starbucks Coffee,” Conway said.

Although the company has ambitious plans to grow, it hopes to realize them while also implementing a $3B efficiency program aimed at cutting costs. This includes $2B of cuts “outside the store in costs-of-goods sold.” The company has also invested $450M into new technology to make drink production more efficient, with a special focus on cold drinks.

The company said it is boosting its investment in its employees by doubling hourly income from fiscal year 2020 to fiscal year 2025, as well as strengthening its digital capabilities through its Starbucks Rewards platform and partnerships with Apple and Microsoft.

Starbucks brought in $36B in revenues over the last year, it said in last week's earnings release. The new details come after CEO Howard Schultz first introduced the reinvention plan at the company's September 2022 investor day.

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