Starbucks Revives Classic Policies to Boost Declining Sales

NEW YORK (CNN) — Starbucks is rolling out a series of policy changes at its U.S. and Canada locations starting Monday, January 27, 2025, in an effort to revive its struggling business. The coffee giant is reintroducing condiment bars, handwritten customer names on cups, and expanding free refills for all paying customers, marking a return to practices that once defined its brand.

The changes come as CEO Brian Niccol works to reverse declining sales and customer traffic. Starbucks has reported three consecutive quarters of slumping sales, with global same-store sales dropping 7% last quarter and customer transactions falling by 8%. Niccol, who took over in September 2024, emphasized that these adjustments aim to restore the “coffee house vibe” that has diminished in recent years.

“Our customers are asking for it, and our baristas are saying it would help them deliver the speed of service that they want to provide,” Niccol said during a recent earnings call. The reintroduction of condiment bars and handwritten cup names is part of a broader strategy to personalize the customer experience and streamline operations.

In addition, Starbucks is expanding free refills on hot or iced coffee and tea for all paying customers, a perk previously reserved for loyalty program members. These drinks will now be served in ceramic mugs or personal cups brought from home, further emphasizing the company’s push for sustainability and a more intimate café atmosphere.

However, not all changes are customer-friendly. Starbucks is tightening its policies on non-paying visitors, requiring purchases for access to seating and restrooms. The company cited feedback from customers and employees, stating that “access to comfortable seating and a clean, safe environment is critical to getting back to the Starbucks they know and love.”

Other new rules include bans on panhandling, discrimination, outside alcohol consumption, and vaping. Employees have been trained to enforce these policies, which the company says are necessary to maintain a welcoming environment for paying customers.

Starbucks’ stock has risen 7% over the past 12 months, but the company faces significant challenges. Investors will closely watch the upcoming earnings report on Tuesday to gauge the effectiveness of Niccol’s turnaround plan.

The policy shifts reflect Starbucks’ attempt to compete with smaller, local coffee shops that have gained popularity by offering a more personalized experience. As the coffee market becomes increasingly crowded, Starbucks is betting that a return to its roots will help it regain its footing.