Starbucks rejigs global operations

Starbucks: global business operations reorganised into three divisions
Starbucks: global business operations reorganised into three divisions

Starbucks has reorganised its global business operations, as it bids to boost revenues outside its core US market.

Currently, the coffee chain has two business units – the US and international.

Now chairman, president and chief executive officer, Howard Schultz, is introducing a new structure made up of three divisions: China and Asia Pacific; the Americas, and EMEA (Europe, Middle East and Asia).

Each division is to be overseen by a president. EMEA, for instance, will be headed by 15-year Starbucks veteran, Michelle Gass.

The new restructure will be in place by September It is unclear yet if it will lead to redundancies across the group.

Starbucks has around 11,000 outlets in the US and Canada, and 6,000 throughout the rest of the world.

It is looking to boost profits outside the US and believes this new structure will help it achieve this.

Schultz said: "Today, we are successfully executing our multi-brand, multichannel strategy and we believe the leadership and organisational moves announced today will optimise our speed and focus going forward."

Earlier this year, Starbucks unveiled a revamped global brand identity as part of a plan to mark its 40th year in business and expand the brand beyond coffee.

In May, Starbucks announced that it was to follow rivals such as Costa Coffee and McDonald’s, by offering contactless payment facilities in its UK stores.

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