Starbucks announces implementation of $3B efficiency program

As part of its new long-term growth 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. “While our opportunity is clear, we know that our success, everything we do, is dependent on the differentiated experience our partners create for our customers. After all, our partners are our superpower.” The company continues to invest in all aspects of the partner experience, while benefitting from lower attrition and higher tenure in US stores. By the end of FY25, the company in the US expects to double hourly income versus FY20, through more hours and higher wages. Next week, the company will share details on a new bundle of partner experience enhancements in the US, solidifying its status in providing the best portfolio of benefits across the industry for hourly retail work.