Starbucks recently announced serious shifts in its in-store policy. The company had an open-door policy where it encouraged anyone to just hang out at its stores while using any of its facilities. Starting January 27, 2025, visitors at one of its coffeehouses will have to make a purchase in order to stay and be allowed use of its amenities, including washrooms. That was part of larger efforts by CEO Brian Niccol to reinvigorate and rework its image.
The shift from open-door policy
The new policy, in turn, overturns an open-door initiative first announced in 2018, after a high-profile incident unfolded in a Starbucks café in Philadelphia when two Black men were arrested in the café because they were only waiting for their friend, thus making many of them accuse Starbucks of racial profiling and further fanning the flame of a public relations debacle. It made the coffee chain change their policy to make their facilities available to people who do not necessarily make purchases, all in the name of inclusiveness.
However, over time, this policy has brought about more safety concerns and disruptive behaviors in the stores. Reports of drug use and other unruly actions forced Starbucks to revisit its policy. The new policy of requiring a purchase is an attempt to refocus on paying customers and to create a more controlled environment.
Revised code of conduct
The new code of conduct is going to be posted in each of the locations throughout North America. Some of the top provisions will include;
- Purchase mandate: Customer is required to make a purchase in order to be allowed in the store or to use the restroom.
- Behavioral mandates: The new rules prohibit disruptive behaviours which includes smoking, taking of drugs, panhandling and also discrimination of any sort.
- Safety: The staff would be trained how to enforce all these rules while still being able to run a welcoming environment.
This code would improve the overall customer experience by ensuring that paying customers get to spend their time in Starbucks undisturbed by non-paying visitors
Rationale behind the change
The rationale for these changes is manifold:
- Safety concerns: Increasing cases of unruly behavior have posed severe security threats to the staff and customers. Many stores were closed in 2022 alone due to issues related to safety.
- Enhanced customer experience: An improved customer experience because, since Starbucks will only allow paying customers into the premises, the group would be that much nearer to actualizing its ‘community coffee house’ brand image.
- Industry norms: There are buying requirements for every retail store to go into, Starbucks has now become part of their league.
The change has received mixed reactions, but this is one of the actions that Niccol has implemented to have Starbucks repossess its position as a gathering place where individuals could enter and become part of the community.
Customer reactions and implications
Customer reaction to the new policy has been mixed. Supporters say it will create a cleaner and more pleasant environment for those customers who want to stay and enjoy their beverages. Critics, on the other hand, feel that this policy will drive away those people who needed Starbucks most as a refuge or public space.
The implications for Starbucks are huge:
- Financial impact: This policy potentially increases sales since non paying visitors may turn into paying customers.
- Employee relations: Training baristas on handling enforcement tactfully will be important in reducing friction with customers.
- Brand image: This is one of the major changes in the way Starbucks positions itself to the market.Â
The company tries to find a balance between being inclusive with the need for safety and comfort among the paying patrons.
Other changes coming
In conjunction with the new purchase requirement, Starbucks also announced other changes designed to enhance customer experience.
- Free refills: Beginning January 27, all customers will be allowed to get free refills of hot or iced coffee when served in ceramic mugs or reusable cups they bring themselves. This perk was previously reserved for loyalty-program members.
- Self-service condiment bars: Self-service condiment bars are also envisaged to be reinstated, so that customers can do their modifications of the drinks on their own rather than waiting for the attention of a barista.
The initiatives are part of the more extensive plan which Niccol has to improve the in-store experience and ensure that customers stay longer with their drinks.
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