Starbucks to Expand Corporate Offices in Tennessee

Starbucks Coffee Company will invest $100 million to expand its North American presence by opening corporate offices in Nashville, the company announced April 21.

The plans will include employing up to 2,000 people over the next several years at the new location as the company continues to grow in the southeastern United States, according to the announcement.

“As Starbucks continues to expand across North America, Nashville gives us an opportunity to support that growth with great talent and proximity to our growing number of coffeehouses and suppliers across the Southeast,” Starbucks Chairman and CEO Brian Niccol said in a statement. “This city offers a deep, diverse talent pool and a strong sense of community, making Nashville another ideal place to invest for the long term.”

In a message to its U.S. partners on the same day, the company’s chief partner officer, Sara Kelly, said Starbucks planned to maintain a large presence in Seattle, but some teams would move to the new offices in Nashville.

The majority of the company’s support teams will continue to be based in Seattle, Kelly said.

Nashville-based roles will include a combination of newly created roles to support growth, some in-sourcing as they turn contract workers into full-time Starbucks partner roles, and select teams moving from Seattle to Nashville, she said.

“More broadly our new office in Nashville reflects three key advantages: proximity to key suppliers, access to a deep and growing talent pool in the region, notably in technology, and alignment with where we expect future coffeehouse growth,” Kelly said in the message. “We are excited about this phase of growth for our talent and the company.”

Tennessee Gov. Bill Lee, who has focused on creating a pro-business climate since his election in 2019, said the state was proud to add the company to its businesses.

“Tennessee is known nationwide for its strong values and fiscally conservative approach to business, and we are proud to add Starbucks to the strong roster of brands that place their trust in our business climate and skilled workforce,” Lee said in a statement. “As Starbucks continues to shape their brand and expand their operations, we’re grateful that they have chosen to build a future here, creating up to 2,000 quality jobs for Tennesseans.”

Starbucks Coffee first opened in 1971 in Seattle inside the city’s historic Pike Place Market. The coffee stand offering coffee beans, tea, and spices from around the world has grown into a global brand worth more than $112 billion. It operates 41,000 coffee houses around the world and employees more than 360,000 workers, according to its latest financial statement on April 1.

The company’s decision to expand in Tennessee comes less than a month after Washington lawmakers passed a “millionaires’ tax” that imposes a 9.9 percent annual tax on household income over $1 million starting Jan. 1, 2028.

The state has one of the highest rates of taxation for businesses, described as tax pyramiding because the very-high rates of taxation on low-margin businesses have taxes embedded several times over on each transaction in the production process, according to the Tax Foundation, a nonprofit think-tank in Washington, D.C.

Seattle Mayor Katie Wilson and Washington Gov. Bob Ferguson’s offices did not return requests for comment about Starbucks’ decision.