Starbucks Details Reinvention Strategy

The approach emphasizes better-run stores, loyalty growth, efficiency and employee satisfaction.

November 06, 2023

Starbucks announced a long-term plan to drive growth. According to the company’s press release, the Triple Shot Reinvention with Two Pumps is the next step in the re-founding of the company. Starbucks will deliver significant value to partners, customers and shareholders by:

  • Elevating the brand 
  • Strengthening and scaling digital  
  • Becoming truly global 

The Starbucks press release goes on to say that these strategies are customized with two enabling “pumps” which will:

  • Unlock efficiency, and  
  • Reinvigorate the partner culture 

Elevating the Brand

Under this category, Starbucks said it will:

  • Focus on running better stores through a stronger operating foundation. 
  • Grow the portfolio with more purpose-defined stores and accelerated renovations.
  • Elevate the brand through further product innovation. 

Strengthen and Scale Digital

Under this category, Starbucks said it will:

  • Double global Starbucks Rewards with another 75 million members—the company’s most frequent customers—within the next five years.  
  • Building on its highly successful program with Delta Airlines, the company also plans to extend the benefits that Starbucks Rewards provides to existing and new customers with additional Rewards Together partnerships—with a financial institution and a hospitality partner—within the next six months. 

Becoming Truly Global

The company announced a plan to expand its global store footprint to 55,000 by 2030—an average of eight new stores a day.

“Over the past five years, we have opened 9,000 stores—7,000 of which were outside of the United States,” said Michael Conway, group president, international and channel development.

Unlocking Efficiency

The company said that it continues to experience the in-store benefits of its reinvention strategy. Starbucks announced the implementation of a $3 billion efficiency program—$2 billion outside the store in cost of goods sold—to both reinvest in the business and to deliver returns to shareholders through progressive margin expansion and earnings growth.  

“We are very confident in our ability to create a more resilient, durable business for the long-term,” said Rachel Ruggeri, executive vice president and chief financial officer. 

Reinvigorate Partner Culture 

“To remain the retail industry employer of choice, we must continue to create a uniquely Starbucks experience that uplifts, inspires, and engages our partners,” said Sara Kelly, executive vice president and chief partner officer. “We will also continue to listen to their evolving needs and best support them in their job, on their team and in their life.”  

According to the release, the company continues to invest in all aspects of the partner experience, while benefitting from lower attrition and higher tenure in U.S. stores. In the United States, by the end of FY25, the company expects to double hourly income versus FY20.