Starbucks will now require customers to make a purchase to stay in its cafes or use the bathrooms. This new policy, part of a broader Code of Conduct, will take effect later this month across all locations, according to The New York Times.
What is the new ‘no bathroom’ policy?
The new policy requires customers to make a purchase to stay in Starbucks cafes, use the patios, or access the bathrooms. This change ends the open-access policy introduced in 2018, which allowed anyone to use the facilities without buying anything.
The updated guidelines, to be displayed in all stores, also outline expected customer behavior. Prohibited actions include discrimination, harassment, smoking, and panhandling. Those who violate these rules will be asked to leave, with law enforcement involved if necessary.
Why did Starbucks change its policy?
The updated Code of Conduct aims to enhance the experience for paying customers. “Implementing a Coffeehouse Code of Conduct is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” a Starbucks spokesperson told ‘The New York Times’.
Store managers have 40 hours to prepare staff and stores for the new policy, which takes effect on January 27. Training will also cover additional practices, including asking customers if they want their drink for here or to go and offering unlimited free refills of hot or iced coffee to those staying in the cafe.
Why change the policy now?
This change follows a 2022 statement by former CEO Howard Schultz, suggesting Starbucks was reevaluating its open-bathroom policy. The earlier policy was introduced after a 2018 incident in Philadelphia, where two Black men were arrested for sitting in a Starbucks without purchasing anything, leading to widespread protests and boycott calls.
The policy shift is also part of Starbucks’ efforts to tackle declining sales, falling stock prices, and pressure from activist investors. It comes under the leadership of Brian Niccol, who became CEO in September last year.
Policy changes under Brian Niccol
The US coffeehouse and roastery chain has been facing falling sales following consumer backlash and boycotts for its alleged links to Israel. The controversy was fuelled by a hoax letter falsely claiming that Starbucks funded the Israeli military, sparking widespread outrage. Starbucks has denied these allegations, stating that it does not support any government or military operation in West Asia.
Niccol himself was also criticised for his decision to commute nearly 1,000 miles from his home in Newport Beach, California, to Starbucks’ headquarters in Seattle via corporate jet, which critics argued went against Starbucks’ public commitment to environmental sustainability.
In light of these controversies, Starbucks’ latest earning reports showed a 6 per cent decline in comparable store sales in the US for the fourth quarter of 2024 compared to the previous year, which contributed to a 3 per cent decline in total revenues.
Starbucks unveils new strategy
The company’s financial challenges were evident in its latest earnings report. Comparable store sales in the US fell by 6 per cent in the fourth quarter of 2024 compared to the previous year, contributing to a 3 per cent decline in total revenues.
Niccol has promised a strategic overhaul to regain customer loyalty, announcing initiatives such as simplifying the menu, halting price increases, eliminating additional charges for non-dairy milk options, and ensuring order delivery within four minutes. The bathroom rule is the latest of a series of changes announced by Starbucks to bring customers and increase sales.
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