Starbucks recently revealed its figures of long-term growth, and its strategy to further expand globally and reinvent the brand during its biennial Investor Day in Seattle, which welcomed more than 150 investors, a press release reported.
“As we execute on our reinvention plan, we are building on our 51-year history of market leading innovation to position our business and our brand for the next chapter of growth,” Interim Chief Executive Officer Howard Schultz said. “Guided directly by our partners, we have already begun to take action on an inspired roadmap to build the future of Starbucks, all while staying true to our mission of uplifting communities through a shared love for coffee and further extending our coffee leadership and innovation. I am confident that our partners and world-class leadership team will capture the significant global growth opportunity ahead, unlocking value for all our stakeholders.”
The company’s reinvention plan for 2023 includes the reframing of wages, store manager investments, personalized career mobility through a new partner app and new employee benefits, such as sick pay, new savings and student loan management.
The presentation, given by Schultz and CFO Rachel Ruggeri, also covered Starbucks’ approach to drive long-term growth, expand its operations geographically and “drive high-teens non-GAAP EPS growth annually through fiscal 2025.”
The expansion includes the appointment of incoming CEO Laxman Narasimhan. Narasimhan’s tenure with the company became effective on Oct. 1.
Currently, Starbucks reports an average of 300 million consumer transactions per week across 86 markets. Projection figures suggest that Starbucks’s year-to-year growth rate will be 7% from fiscal 2023 to fiscal 2025, representing a 6% increase from former figures. The brand expects its global revenue to grow by 10% to 12% annually during the same period.
“Starbucks is a growth company, and our accelerated expansion is a direct reflection of the expected returns from our reinvention plan,” Ruggeri said. “By making strategic and highly targeted investments to drive value for partners, Starbucks will also drive value for customers and shareholders, while managing costs, improving margins and elevating the Starbucks experience for all stakeholders.”