Starbucks to open new corporate office in Nashville

Starbucks said Tuesday it’s opening a corporate office in Nashville, Tennessee, to support its planned U.S. expansion.

Seattle, where Starbucks was founded in 1971, will remain the company’s global headquarters. But Starbucks said it expects to invest $100 million and employ up to 2,000 people in its Nashville office over the next five years.

In a memo to employees Tuesday, Starbucks’ Chief Partner Officer Sara Kelly said some employees will be new hires and others will be contract workers who will transition to full-time roles with Starbucks. Starbucks said it will also be moving some teams from Seattle to Nashville.

Tennessee officials didn’t say Tuesday what tax breaks or other incentives Starbucks was offered. A message seeking comment was left with the Tennessee Department of Economic and Community Development.

Starbucks Chairman and CEO Brian Niccol said in January that the company sees an opportunity to build at least 5,000 new cafes across the U.S. The company has nearly 17,000 U.S. stores, but there are thousands of locations where no Starbucks operates within a mile of a competitor, he said.

Starbucks is particularly eyeing the central, southeastern and northeastern U.S. for store development. The company is facing newer, fast-growing players like Nebraska-based Scooter’s Coffee and Arkansas-based 7 Brew in those regions, as well as longtime rivals like Dunkin’.