On January 13, Starbucks announced a major shift in its store policy in the United States, reversing a long-standing practice of allowing free access to its locations. The coffee chain has now implemented a new regulation, requiring customers to make a purchase before entering its North American stores. This change will also be supported by training for employees on the updated rules.
The new policy includes strict measures for those who do not comply, with store staff instructed to ask violators to leave. In more severe cases, the store may involve law enforcement to enforce the policy.
A spokesperson for Starbucks explained that the decision to prioritize paying customers is in line with industry standards, as most retailers have adopted similar rules. “We want everyone to feel welcome and comfortable in our stores,” the spokesperson said. “By setting new standards, we aim to improve the experience for everyone.”
Does This Change Apply to Starbucks Locations in China?
When asked whether this new policy would extend to Starbucks locations in China, a representative from Starbucks China clarified the situation on January 14. According to the company, each Starbucks store in China operates independently, with individual stores determining their policies. There is currently no mandate to stop allowing free access to the public.
One Starbucks store in China informed The Paper that, while it expects customers to make purchases, they generally do not ask non-paying customers to leave unless the store is at full capacity. In such cases, staff may request that non-paying patrons vacate their seats to make room for paying customers. However, if seats are available, the store typically allows people to stay.
Starbucks Faces Declining Revenue, Changes in Leadership
Starbucks’ most recent financial report for the fourth quarter of fiscal year 2024, which ended on September 29, showed a revenue of $9.07 billion, down 3.2% from the previous year. The company’s net profit for the quarter dropped by 25.4%, primarily due to weaker performance in North America.
The company’s new CEO, Brian Niccol, who took over leadership in September 2024, has unveiled the “Return to Starbucks” plan. This initiative aims to revitalize the brand, focusing on Starbucks’ identity as a community coffeehouse and emphasizing its core values. Niccol shared that feedback from customers indicated a disconnect between the company and its patrons, which has contributed to declining foot traffic. He emphasized the need for a strategic overhaul to win back customers and drive growth.
Under this new plan, Starbucks intends to reposition itself as a neighborhood coffee hub, reintroducing its core offerings, simplifying menus, and improving the value customers feel they receive. Niccol also acknowledged the importance of reviving Starbucks’ presence in the U.S. and restoring its growth, while also focusing on international markets, including China, to ensure the brand performs well globally.
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