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Starbucks is changing its vibe beginning today.
The coffee chain is reintroducing elements many customers associate with its “classic coffeehouse vibe,” like condiment bars and handwritten names on cups.
Customers can expect to see a shift in the way baristas engage with them, asking whether they’re staying or heading out and offering ceramic mugs for those staying to sip their beverages. Additionally, macchiatos will be topped with more intricate caramel designs, and both loyalty members and non-members will receive free refills on iced and hot coffee.
CEO Brian Niccol’s plan to return Starbucks to its roots is extensive. He’s promised that baristas will serve fresh brewed coffee in under four minutes and keep prices steady through fiscal 2025. Other adjustments also include paring down the menu, adding vegan-friendly falafel, and eliminating the up-charge for dairy-free alternatives.
However, not all of Starbucks’ (SBUX+0.09%) changes have been well-received. The company is restricting access to bathrooms and free water cups, making them available only to paying customers. To help implement these new changes, Starbucks held three-hour training sessions to prepare staff for the new customer interactions. According to a company spokesperson who spoke to Bloomberg, the training emphasized asking customers whether they will stay or go.
Starbucks first made its bathrooms available to anyone in May 2018, following the arrest of two Black men who were waiting for a friend at a Philadelphia location. The reversal of the policy has since sparked division among customers and employees.
In Dec. 2024, baristas, already dealing with demanding conditions, went on strike, calling for higher pay and improved benefits.
These changes are part of Niccol’s larger effort to transform Starbucks into a premium hangout spot, hoping to encourage longer visits and boost sales in the process, which could in turn help it reclaim its coffeehouse crown. The updated procedures will apply to company-operated stores across the U.S. and Canada.
As Starbucks continues to experiment with new collaborations, such as its partnership Disney, and revives traditional marketing tactics like TV ads, it remains to be seen whether these efforts will generate long-term growth. The company is expected to report its fiscal first-quarter earnings on Tuesday, Jan. 28, and Wall Street is anticipating a modest sales decline, though Niccol’s longterm strategy is positioned to drive recovery.
Since taking the role of CEO in Sept. 2024, Niccol has earned $96 million in compensation in just four months, including $72,000 allocated for his California-to-Seattle commute.