Starbucks will spend an additional $450 million to revamp its coffee machines and stores in an effort to accelerate its growth, adapt to shifting consumer preferences, and mend relations with disgruntled baristas.
In recent years, the company had “lost its way,” according to Howard Schultz, the company’s founder who returned as interim CEO in April. But, he predicted, “Starbucks’ best days are ahead of us.” Schultz predicted that Starbucks would recover more quickly than it had after its 2008 crisis. During a meeting with investors in Seattle on Tuesday, he predicted that the company’s long-term revenue and profit growth would exceed earlier projections by double digits.
The “reinvention” plan will include an additional $450 million investment in its North American stores in 2023, in addition to the $1 billion investment program scheduled for 2022. Starbucks also unveiled new equipment that reduces the time required to heat food and produce increasingly complex cold beverages, which now account for 70% of the company’s coffee sales.