Starbucks Pulls the Plug on Open-Door Privilege for Non-Paying Customers

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Starbucks (SBUX) is working to recover after a tough year marked by several consecutive quarters of declining sales.

In its most recent earnings report, the coffee giant revealed that comparable store sales in the U.S. dropped by 6% year-over-year in the fourth quarter of 2024, contributing to a 3% overall decline in total revenue.

This downturn followed a boycott over alleged political ties to the Gaza war and backlash from customers over rising menu prices. Amid these challenges, Starbucks appointed Brian Niccol, former CEO of Chipotle, as its new leader in September 2024. Niccol promised to "fundamentally change" Starbucks' approach to win back customers.

Since then, the company has implemented several changes, including simplifying the menu, pausing price hikes, eliminating the surcharge for nondairy milk, and working toward delivering orders in "four minutes or less."

However, Starbucks’ most recent change has sparked some customer dissatisfaction. The company has ended its open-door policy, which previously allowed non-paying customers to use the store's seating and restrooms. According to Starbucks' updated code of conduct, customers are now required to make a purchase to access these amenities. The company stated that it wanted to prioritize its spaces for paying customers.

This shift follows the introduction of the open-door policy in 2018 after a viral incident in which two Black men were arrested at a Philadelphia Starbucks for trespassing while waiting for a friend. The arrest occurred after the men asked to use the restroom but were told the facilities were only for paying customers.

The new policy also highlights Starbucks' commitment to maintaining a discrimination-free environment and prohibiting activities like smoking, drug use, panhandling, and disruptive behavior. Employees who don't follow the code of conduct may be asked to leave, with law enforcement potentially called for assistance.

The change comes at a time when Starbucks is also facing a strike by over 5,000 baristas at 300 U.S. stores, which began last month. The workers, represented by the Starbucks Workers United union, are protesting for better wages, benefits, and staffing, as well as improved protections against safety and harassment issues in stores. In 2022,

Starbucks closed 16 stores due to safety concerns, including drug use and violent incidents. The union is pushing for enhanced safety protocols and protections against racial harassment for employees

 

 

 

 

 

 

 

 

Paraphrasing text from "TheStreet" all rights reserved by the original author.