If you thought Starbucks was ubiquitous now, just wait until 2030. As reported by CNBC, the chain is eyeing global expansion over the next seven years thanks to its plan to boost the number of locations, with the majority of the expansion occurring outside of the United States. According to Starbucks' president of international and channel development divisions, Michael Conway, the chain's "increasingly global" portfolio is a driving force behind the expansion strategy.
Per Conway, "Three out of every four new stores over the near term is expected to be opened outside of the U.S.," which will bring the total number of international locations to 35,000. Once the expansion is complete, Starbucks will have 55,000 stores all over the world. While the announcement of its expansion strategy is garnering lots of attention, it's not the only significant change the company has in the works. Starbucks is also planning adjustments to its budget and the wages it currently offers its baristas.
The Immense Coffee Chain Also Plans To Cut Costs And Increase Wages
Global expansion is just one of three updates Starbucks is planning, which make up the chain's "Triple Shot Reinvention Strategy." The company is also implementing a cost-reduction strategy it hopes will result in savings of $3 billion. Enhancing efficiency throughout all locations is a major aspect of the plan, which Starbucks claims will account for savings of $1 billion on its own.
Finally, the chain is planning to increase wages for staff members by Q4 2023. It's no secret that baristas are put to the test throughout many locations, with customers expecting faster service while placing increasingly complex coffee orders. The wage increase could also be spurred by recent unionization efforts affecting 350 stores, as well as accusations that Starbucks has violated federal laws. With shares up and profits thriving, Starbucks certainly has lots of motivation to make substantial updates. However, only time will tell if the company can continue on its successful path.
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