Starbucks said Tuesday it will open a corporate office in Nashville, Tennessee, as part of what the company described as its planned U.S. expansion. The coffee chain said Seattle, where Starbucks was founded in 1971, will remain its global headquarters.
In a memo to employees, Starbucks Chief Partner Officer Sara Kelly said some employees would be new hires while others would be contract workers who would transition to full-time roles with Starbucks. The company also said it would move some teams from Seattle to Nashville.
Starbucks said it expects to invest $100 million in the Nashville office and employ up to 2,000 people there over the next five years. The company’s announcement did not specify what roles would be based in Nashville, but it linked the office opening to its broader expansion plans.
Starbucks Chairman and CEO Brian Niccol previously said in January that the company sees an opportunity to build at least 5,000 new cafes across the U.S. The company said it has nearly 17,000 U.S. stores and that there are thousands of locations where no Starbucks operates within a mile of a competitor.
In its Tuesday announcement, Starbucks said it is particularly eyeing the central, southeastern and northeastern parts of the U.S. for store development. The company said it faces competition from newer, fast-growing chains such as Nebraska-based Scooter’s Coffee and Arkansas-based 7 Brew, as well as longtime rival Dunkin’.
Tennessee officials did not say Tuesday what tax breaks or other incentives Starbucks was offered as part of the Nashville office plan. A message seeking comment was left with the Tennessee Department of Economic and Community Development.