Starbucks stands to receive $30 million for new Nashville office
Starbucks stands to benefit from a $30 million grant that might be awarded by Tennessee for the coffee giant’s operational expansion into Nashville.
The Tennessee State Funding Board’s agenda for a meeting on May 20 includes an item tied to the Seattle-based coffee giant: the consideration and approval of a $30 million economic development grant.
The money is tied to the company’s decision to name Tennessee as the home of a new corporate operations office, which was announced in March. Over the next five years, it will host up to 2,000 employees, with an average salary of $125,000.
Starbucks has pledged $100 million in investments toward the Southern state. Its new office will sit in Davidson County. Tennessee already hosts major employers like Seattle-based Amazon, HCA Healthcare and Nissan North America.
Starbucks declined to comment Wednesday. The Tennessee comptroller’s office didn’t immediately respond to a request for comment.
Starbucks’ global headquarters is in Seattle’s Sodo Neighborhood. Spokesperson Lori Torgerson said in March: “Seattle remains our North America and Global Support HQ.”
The move to expand into Tennessee has triggered a spirited debate over the health of Washington’s business environment.
This week, former Starbucks CEO Howard Schultz wrote in a Wall Street Journal op-ed that Seattle Mayor Katie Wilson “vilifies employers, even while she continues to rely on them for revenue.”
Wilson responded Tuesday that “Starbucks is part of Seattle’s culture and identity, and I want the company and other large employers to continue succeeding here.”
She said her team regularly communicates with the executive team at Starbucks about homelessness, public safety, affordability and other issues.
Meanwhile, in Tennessee, its “FastTrack” grants make funding available “where there is a commitment by an eligible business to create or retain private sector jobs or engage in private investment, according to the Tennessee Department of Economic and Community Development.
The Tennessee State Funding Board, which includes Gov. Bill Lee and four other members, must generally approve any grants over $750,000 per business within a three-year time span.
That approval is fairly commonplace. The board has greenlit several grants so far this year.
Starbucks’ leadership says the company is in a viable position, according to the most recent quarterly earnings call in April. CEO Brian Niccol shared better-than-expected profits and revenues, crediting his Back to Starbucks plan, which puts the company’s focus on the coffeehouse experience.