Starbucks Teams Up with LA28 as Part of Strategy to Achieve $2.5 Billion Earnings Target
In a significant move, Starbucks has joined the ranks of founding partners for LA28, the organizing committee for the 2028 Olympic Games in Los Angeles. The coffee giant has secured a $2.5 billion domestic corporate sponsorship, marking its first Olympic and Paralympic sponsorship.
Starbucks' CEO, Brian Niccol, has been striving to rebuild personal connections with customers through various initiatives. These efforts include abandoning pickup-only shops and adjusting store interiors to foster a more inviting atmosphere. However, no new information about these specific initiatives in relation to the Olympic Games was provided.
The coffee chain will extend its presence to competition venues and volunteer hubs, providing a familiar comfort to athletes and volunteers alike. Additionally, Starbucks has secured coffee exclusivity across NBCUniversal's multiplatform coverage of the 2026 Milano Cortina Winter Olympics and LA28.
LA28 chairperson and president, Casey Wasserman, aims to hit at least $2 billion in sponsorship revenue by the end of 2025. This partnership with Starbucks brings them one step closer to that goal. LA28 has also begun selling naming rights at competition venues, a first for Olympic and Paralympic Games, with Honda securing the deal for volleyball being played at the Honda Center.
This is LA28's fourth founding partner sponsorship deal. Previously, Delta signed a $400 million inaugural founding partnership deal in 2020, and media partner Comcast extended its USOPC partnership before the 2022 Beijing Winter Games.
It's worth noting that Brian Niccol was previously CEO of Chipotle Mexican Grill before taking the helm at Starbucks. The terms of the Starbucks agreement with LA28 were not disclosed.
LA28 organizers have faced challenges due to the 11-year lead time between Los Angeles securing the Olympics and the actual event. Market softness driven by COVID-19 has been a particular hurdle. However, LA28 has been able to secure commercial momentum, inking a second founding partner within a few months.
Starbucks has also signed as a founding partner for the LA28 organizing committee and Team USA. A notable part of this partnership will see Starbucks creating a specially designed coffeehouse for Olympians, further cementing its commitment to the Games.
No related story about EverPass distributing ESPN+ to bars and restaurants was provided in the current paragraph. The partnership between Starbucks and LA28 is expected to strengthen as the 2028 Olympic Games draw nearer.
