Exclusive: Starbucks shift entices more customers to "sit and stay"
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Illustration: Sarah Grillo/Axios
Starbucks' big bet on reestablishing its cafes as community coffeehouses is showing early signs of paying off, according to numbers shared exclusively with Axios.
Why it matters: The Seattle-based coffee giant is trying to reverse a decline in foot traffic and sales by returning to its roots.
Zoom in: Starbucks tells Axios that over the past three weeks "the number of customers who choose ceramic mugs and glasses to sit and stay in cafes has on average increased by more than 3X in the U.S."
- For purchasing a drink served in a mug or glassware in a cafe, consumers can get a free refill on the same visit — a move that is encouraging some to stick around.
- New CEO Brian Niccol said last week during the company's annual shareholders meeting that he was "pleased at the early reaction to changes we've made from both customers and partners."
The big picture: Under Niccol — who joined from Chipotle in September — the company has been making a series of changes under its "Back to Starbucks" plan.
- Starbucks introduced a new code of conduct, free refills and brought back condiment bars in late January after ditching the nondairy milk fee in November.
- In early March, the company removed 13 longtime drinks to simplify its menu as part of the strategy to cut the menu by roughly 30% by September.
- Starbucks has said simplifying the menu will "make way for innovation" — such as adding new items like the Cherry Chai and the Cortado — and "help reduce wait times, improve quality and consistency, and align with our core identity as a coffee company."
What they're saying: Tressie Lieberman, the company's global chief brand officer, told Axios the company is "leaning into our coffee culture."
- "We're reestablishing Starbucks as the community coffeehouse and reintroducing Starbucks to the world," said Lieberman, an executive vice president who Niccol recruited from Chipotle.
- Lieberman noted the company is investing in marketing with ads on television and streaming platforms to "evoke the feeling that 'I want to go to Starbucks.'"
What's next: Starbucks has begun testing new designs in select locations across the country.
- The company tells Axios it plans to bring back "more comfortable seating and spaces to ensure our stores are a place where customers want to sit, work, and meet."
- New designs include "expanded seating options, power outlets, and abundant food displays" and locations with "more separation between the cafe and mobile order experience."
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Editor's note: This story was updated with additional information on how Starbucks is continuing to add drinks and new menu items.
