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Starbucks announces Nashville headquarters, shifting away from Seattle
One of Washington's iconic companies headquartered in Seattle now plans to open a major corporate office in Nashville, with Starbucks announcing it will add thousands of jobs and invest millions in Tennessee.
SEATTLE - Washington could lose up to $750 million in tax revenue in the coming years with Starbucks expanding in Tennessee instead of Washington.
The backstory:
Questions are mounting on the economic fallout for Washington as the Seattle-based coffee giant announced plans to invest $100 million in Nashville, adding 2,000 new jobs over the next five years. The company expects the corporate offices to be in operation by 2027.
Starbucks CEO Brian Niccol characterized the expansion as a strategic move.
"It really sets us up for our next leg of growth, the next chapter of growth for us," Niccol said.
Tennessee Governor Bill Lee rolled out the red carpet for Starbucks during a press conference on Tuesday, saying the people of Tennessee have made the state a business-friendly environment and the "envy" of many states.
"We are extremely grateful for you and Brian for your team," Governor Lee said.
Local perspective:
The message is sharply different from Seattle Mayor Katie Wilson when she encouraged a crowd to boycott the company shortly after she was elected mayor. The statement was made in front of a crowd during a Starbucks workers rally in November.
"I am not buying Starbucks and you should not too," Mayor Wilson said.
Katie Wilson speaks in support of a Starbucks strike in Seattle on November 13, 2026.
In early April, FOX 13 asked Wilson if she regretted saying those words. Mayor Wilson says she is not the reason why Starbucks is expanding elsewhere.
"They’ve been in talks for forever," Wilson said.
She also emphasized the company is not leaving Seattle, just expanding elsewhere. But the scale of expansion is historic for Nashville.
What they're saying:
Adam Sichko of the Puget Sound Business Journal noted that the addition of 2,000 positions ranks among the top five job announcements in Nashville’s history.
"The average salary for these 2,000 jobs is $125,000 a year, which’s well above the median household income," Sichko said.
FILE - The Starbucks mermaid logo is displayed at the company's corporate headquarters in Seattle on April 26, 2021. (AP Photo/Ted S. Warren, File)
Sichko expects Tuesday’s announcement to be just the beginning of more to come.
"A company makes an initial move and they grow in the second stage and it grows in the third stage and so these companies are certainly mobile and they are flocking to where some of the more affordable business costs are," Sichko said.
While the new roles are corporate positions, Sichko says it could spawn secondary jobs and impact small businesses nearby.
Dig deeper:
On Tuesday, the Washington Policy Center said the move comes as no surprise.
Ryan Frost noted the shift offers a significant financial advantage for Starbucks. According to Frost, Starbucks reduces its tax burden by $12,000 per year for every employee located in Nashville compared to Seattle.
"Seattle has such a higher tax burden than Nashville does," Frost said.
Frost says Tennessee has far fewer taxes across the board. Also, Washington’s B&O tax is calculated against a company’s gross receipt and not just on profits.
Frost says expenses are steep in Washington and the business climate has soured over the last decade.
By the numbers:
The Tax Foundation ranked Washington state as the 6th best place to do business in 2014. Washington is now ranked 45th in the country.
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State lawmaker concerned over companies 'quiet quitting' Washington
Washington Rep. Chris Corry is criticizing state policies, blaming them for contributing to high costs, including new taxes affecting businesses and consumers.
WPC has been crunching the numbers since Tuesday’s announcement. Their prediction of the long-term fiscal impact on Washington is substantial. Frost estimates the state is on track to lose up to $750 million in tax revenue over the next two decades, assuming a 3% annual growth rate for Starbucks in Tennessee.
FOX 13 reached out to Wilson after Tuesday’s news about the 2,000 jobs and asked whether there were concerns about job loss to Seattle.
Wilson’s office released the following statement:
"Starbucks is a core part of Seattle’s identity—we’re proud to be home to its first store, its headquarters, and so many of the workers who make the company what it is," the statement read. "We’re focused on maintaining a strong partnership with leadership and with employees, so Starbucks continues to succeed in the city where it all began."
Starbucks announces its corporate office expansion in Nashville, TN
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.
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Starbucks announces its corporate office expansion in Nashville, TN
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The Source: Information in this story came from Starbucks, the office of Seattle Mayor Katie Wilson, the Puget Sound Business Journal, the Washington Policy Center, the Tax Foundation, and previous FOX 13 Seattle reporting.