Starbucks announcement about corporate operations office in Nashville

Seattle-based coffee giant Starbucks is investing $100 million to establish a new support office in Nashville, Tennessee, as part of a long-term growth strategy that includes creating 2,000 regional jobs over the next five years.

The company announced on Tuesday that the Nashville offices will complement its global headquarters in Seattle, where the majority of support teams will remain. While some Nashville-based positions will be new, others will involve relocating select technology and sourcing teams to the region to improve proximity to suppliers and local talent.

Starbucks plans to open a temporary workspace in May before moving into a permanent downtown facility at the Peabody Union complex in 2027.

The backstory:

The company recently signed a lease for a 250,000-square-foot facility in Nashville, which the company has designated its “Southeast Corporate Office.” According to the Tennessee Department of Economic and Community Development, the new hub has the capacity to house 2,000 employees.

While the company has not yet released a formal statement, official job postings on the Starbucks hiring portal Tuesday morning already list several high-level corporate positions in Nashville. Roles such as director of sourcing for global supply chain and senior sourcing manager, which were historically based in Seattle, are now listed with Tennessee locations.

The expansion comes as the company navigates a period of internal transition, having seen four different leaders in the past four years and ongoing unionization efforts among its baristas.

The move could save the company millions in taxes. Tennessee does not have a payroll tax for high earners and utilizes an excise tax based on profits. In contrast, Washington’s Business and Occupation (B&O) tax is levied on gross revenue regardless of whether a company is profitable.

“Companies across the nation recognize that Tennessee’s strong values and fiscally-conservative approach are good for business,” Tennessee Gov. Bill Lee said in a statement. “We are proud to welcome another Fortune 500 company like Starbucks to our state.”

Despite the new Nashville lease, Securities and Exchange Commission filings from last month still list Starbucks’ principal executive office on Utah Avenue in Seattle’s SoDo neighborhood. Washington Gov. Bob Ferguson reportedly met with Starbucks CEO Brian Niccol last week, though the details of that meeting have not been disclosed.

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