Will Starbucks usher in a new round of transformation?

As we all know, Starbucks was founded in 1971 and was taken over by Howard Schultz after a financial crisis in the late 1980s. Starbucks has been the CEO of Starbucks twice after nearly 30 years of hard work. Starbucks has experienced listing and rapid expansion to become the world's largest chain coffee brand.

As the retirement date of current Starbucks CEO Kevin Johnson is approaching, as the next successor has not yet been determined, "Star Dad" Howard Schultz has confirmed that he will be CEO again before this year's annual general meeting.

This return, Starbucks faces many challenges, such as the Starbucks trade union movement in the United States and the high-profile Chinese market. Due to the food safety problems and police eviction incidents of Starbucks in China in the past six months, the brand image established by Starbucks for a long time has the possibility of house collapse. In addition, the rapid expansion of stores and tight supply chain have brought all kinds of cost and sales pressure to Starbucks.

Over the past year, Starbucks has suffered a series of disputes that have pushed Starbucks to the brink of transformation. At Starbucks' 2022 shareholders' meeting, which ended a few days ago, plans were made for Starbucks' development in the next few years.

Equipment and drinks

Starbucks announced a new Clover Vertica brewer and continued introduction of the Matrena II espresso machine, which will be deployed in Minneapolis settlements and Starbucks reserve bakeries and stores in the United States from March 2022, and plans to install it in stores operated by all companies in the United States by 2025.

In addition, emphasis was placed on beverage innovation, which is based on ongoing efforts to raise coffee standards, especially in cold espresso (cold espresso) and plant-based products are the two fastest growing categories of Starbucks. Last fiscal year, cold drinks accounted for nearly 70% of Starbucks' total beverage sales, an increase of 20% in the past three years.

Employee

An increase of $1 billion in wages, training and benefits. Hourly wages have increased by an average of 17% over 18 months, with starting salaries ranging from $15 to $23 an hour by the summer of 2022. Pay increases of 5% and 10% for partners who have worked at Starbucks for two years and more than five years, respectively.

To address the labor shortage, Starbucks has added more than 70 recruiting staff in various national markets and plans to hire 5000 new partners a week.

a shop

Starbucks plans to expand its stores worldwide to 55000 by 2030.

Starbucks' hard-established and hard-working high-end image for more than two decades is at stake. As Starbucks' second largest market in the world, there are more and more local coffee brands, and new tea brands are diverting Starbucks consumers. The voice of "get out of China" is getting louder and louder, and Howard Schultz's once bullish Chinese market is facing more and more challenges.

Starbucks said in an announcement that it would find a successor this fall. That means it may only take half a year for Howard Schultz to overhaul Starbucks. So can Howard Schultz help Starbucks complete its transformation on schedule before the fall?

Photo Source: Internet

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