Starbucks is implementing significant changes to its policies in an effort to rejuvenate its declining sales and improve customer experience. Faced with backlash from price hikes and boycotts linked to the Israel-Gaza conflict, the coffee giant is reversing its six-year-old policy that allowed individuals to use its facilities without making a purchase. The new policy, set to take effect on January 27, will require patrons to buy a drink to enjoy the amenities at Starbucks cafes across North America.
This policy shift marks a departure from Starbucks' previous stance, which permitted non-paying customers to linger in their stores and use the restrooms freely. The original policy was introduced following a controversial incident in 2018, when two men were arrested at a Philadelphia Starbucks for not making a purchase. Now, Starbucks aims to prioritize its paying customers by implementing this new "Coffeehouse Code of Conduct."
"Implementing a Coffeehouse Code of Conduct… is a practical step that helps us prioritise our paying customers who want to sit and enjoy our cafes," said a Starbucks spokesperson.
In addition to these policy changes, Starbucks plans to introduce a new perk for those who choose to purchase and consume their drinks on-site. Starting January 27, customers will be entitled to one free refill of hot or iced coffee, enhancing their in-store experience. This initiative is part of Starbucks' broader "back to Starbucks" strategy, designed to revamp menus and coffee shops as well as boost customer satisfaction.
Brian Niccol, brought into Starbucks last year from Chipotle, plays a pivotal role in executing this strategy. As part of the company's efforts to reverse declining sales, Niccol focuses on improving the customer experience and revitalizing the brand's image. The comprehensive plan aims not only to attract new customers but also to retain existing ones by offering a more inviting and exclusive atmosphere.
The decision to enforce these changes comes at a challenging time for Starbucks, as it grapples with consumer backlash over price increases and geopolitical events impacting its brand perception. By introducing these new policies, Starbucks hopes to foster a welcoming environment for paying customers while simultaneously driving growth and stability in its sales figures.