Dive Brief:
- Starbucks will open a corporate office in Nashville, Tennessee, later this year, according to a press release from the Tennessee Department of Economic and Community Development.
- The new office will support the coffee chain’s growth strategy in North America, particularly in the Southeast, according to the press release.
- The Tennessee office will work closely with its global headquarters in Seattle. The office will become part of its supply chain operations in North America with dozens of existing employees expected to relocate, according to The Wall Street Journal. Other roles will be opened in the future.
Dive Insight:
Despite closing 400 units and laying off 900 corporate workers last September, the chain is gearing up for a major expansion as it prepares to potentially add 5,000 coffeehouses across the U.S. New openings will focus on the Central U.S., South and within the Northeast, Chief Operating Officer Mike Grams said in January during Starbucks’ investor day.
“We see Nashville, Tennessee, as an ideal location to open an office and establish a more strategic presence in the Southeast region of the U.S.,” Grams said in a statement on the new office.
The chain is able to focus on growth after it flipped into positive same-store sales and traffic during its fiscal Q1 2026 for the first time in several quarters. CEO Brian Niccol has looked to improve coffeehouse vibes with renovations like softer furniture and muted interior colors. He also aims to shrink staff turnover rates and better the ordering and overall guest experience. The company saw significant traffic growth following its Bearista cup drop and holiday launch last year, as well.
Other chains have been focusing on expansion in the Southeast in recent years. In-N-Out is opening a corporate office in Franklin, Tennessee, to support its East Coast expansion. It opened three Tennessee locations late last year.
Starbucks did not respond to request for comment on the Tennessee office by press time.