/images/ppid_59c68470-image-176180752647799310.webp)
What is the story about?
Starbucks Corp. has poured millions into rehabbing its stores to get more people through its doors and to hang out for longer. Neither of those things is happening.
The share of visits that are longer than 10 minutes has shrunk since Chief Executive Officer Brian Niccol took the helm in September 2024, according to data from Placer.ai. In 2023, over 40% of visits lasted longer than 10 minutes. Today, that share is about a third, driven in part by a smaller share of people spending longer than half an hour at the chain.
Keeping consumers in stores longer is a key pillar of Niccol’s turnaround plan, which he announced in his first days on the job. The company pledged to improve customer service, speed up drinks and return some cafes to the “warm, cozy, comfortable environment” that were the company’s original vision. But so far the efforts haven’t paid off in terms of linger times or traffic growth, which has fallen for the past four quarters.
Also read | Top 10 Indian dishes of 2025 ranked: First 3 are vegetarian; there’s one dessert on the list
With the coffee maker set to release earnings Wednesday, investors will be looking to see if the company’s promised turnaround has taken hold. The stock is down 6.4% so far this year. Profits have fallen by double digits for four straight quarters, while same-store sales have contracted for the last six.
“They’ve trained their customer to use this brand as a convenience channel, not as a place where you sit down and linger,” said Citi analyst Jon Tower. But, he said, nicer shops could make someone come back, even to grab a coffee and leave. “They just want more people to come in and walk in and say, ‘wow, this feels like a great place.’”
The improvements have included increased seating, additional electrical outlets and reintroducing ceramic mugs for use in store. The redesigns mean effectively unwinding decades of investment under previous management teams to turn the chain into a quick-service coffee stop.
The company says it’s seeing early positive results at stores it has updated, with customers visiting more often and staying longer at those cafes. Starbucks didn’t disclose how many of its more-than 18,000 North American cafes it has rehabbed, but has said it plans to update 1,000 locations in fiscal 2026.
Also read | Restaurants, eateries and theatres can remain open 24x7 in Maharashtra, but not liquor outlets
The company has recalibrated its store upgrades to reduce their cost. Previously, they ran between $800,000 to $1 million each, but now some will cost as little as about $150,000. Starbucks is adding back previously removed seating and softer design elements.
“Early results from uplifted coffeehouses in New York City and Southern California are already showing promise,” a spokesperson said. “Customers are staying longer, visiting more often, and sharing positive feedback.”
The chain has also sped up service. According to the company, 80% of its drinks are now served in less than four minutes. Placer data shows that the share of people spending 10 minutes or less in stores is up from September 2023.
Dennis O’Leary said he noticed new chairs and other updates at his local Starbucks on 58th St. between 5th and Madison Avenues in Manhattan, but hasn’t started spending more time there. The music, O’Leary said, was too loud and “tinny” to make him stay long. Instead, he wears noise canceling headphones while waiting for his drink.
Inside, Same Ol’ Mistakes by Rihanna played over the sound system. By late morning on a Wednesday, all seven of the small tables with seating were occupied mostly by customers waiting for orders to be called out. Only a couple of patrons pecked away at laptops nearby.
Along with the cosmetic changes, Niccol has ordered increased staffing and began requiring baristas to write uplifting messages on cups.
The coffee chain told Bloomberg it’s made progress simplifying its menu, trimming the list of items by 25%. This year, Starbucks will only have one apple crisp beverage, as opposed to the seven it had last year. The company has also reduced frappuccino options and phased out some food items, like blueberry scones and portobello and kale egg bites.
“We streamlined our menu to clear the way for innovation and focus on what customers love most,” a spokesperson told Bloomberg.
It’s also had success with some new menu items, including pecan drinks that have seen double-digit order growth from last year, the company said.
Starbucks recently announced a spate of store closures and layoffs as part of a $1 billion restructuring, and prioritised shuttering financially struggling and dated stores, according to the statement announcing changes. The company targeted the to-go only store formats introduced under previous management, as those models are out of step with Niccol’s current vision for the brand. Those locations were closed or will be updated to full-service setups.
Analysts expect Starbucks to report sales at existing North American stores were flat last quarter when it issues results, though data points to a continued slide in foot traffic through the period.
The share of visits that are longer than 10 minutes has shrunk since Chief Executive Officer Brian Niccol took the helm in September 2024, according to data from Placer.ai. In 2023, over 40% of visits lasted longer than 10 minutes. Today, that share is about a third, driven in part by a smaller share of people spending longer than half an hour at the chain.
Keeping consumers in stores longer is a key pillar of Niccol’s turnaround plan, which he announced in his first days on the job. The company pledged to improve customer service, speed up drinks and return some cafes to the “warm, cozy, comfortable environment” that were the company’s original vision. But so far the efforts haven’t paid off in terms of linger times or traffic growth, which has fallen for the past four quarters.
Also read | Top 10 Indian dishes of 2025 ranked: First 3 are vegetarian; there’s one dessert on the list
With the coffee maker set to release earnings Wednesday, investors will be looking to see if the company’s promised turnaround has taken hold. The stock is down 6.4% so far this year. Profits have fallen by double digits for four straight quarters, while same-store sales have contracted for the last six.
“They’ve trained their customer to use this brand as a convenience channel, not as a place where you sit down and linger,” said Citi analyst Jon Tower. But, he said, nicer shops could make someone come back, even to grab a coffee and leave. “They just want more people to come in and walk in and say, ‘wow, this feels like a great place.’”
The improvements have included increased seating, additional electrical outlets and reintroducing ceramic mugs for use in store. The redesigns mean effectively unwinding decades of investment under previous management teams to turn the chain into a quick-service coffee stop.
The company says it’s seeing early positive results at stores it has updated, with customers visiting more often and staying longer at those cafes. Starbucks didn’t disclose how many of its more-than 18,000 North American cafes it has rehabbed, but has said it plans to update 1,000 locations in fiscal 2026.
Also read | Restaurants, eateries and theatres can remain open 24x7 in Maharashtra, but not liquor outlets
The company has recalibrated its store upgrades to reduce their cost. Previously, they ran between $800,000 to $1 million each, but now some will cost as little as about $150,000. Starbucks is adding back previously removed seating and softer design elements.
“Early results from uplifted coffeehouses in New York City and Southern California are already showing promise,” a spokesperson said. “Customers are staying longer, visiting more often, and sharing positive feedback.”
The chain has also sped up service. According to the company, 80% of its drinks are now served in less than four minutes. Placer data shows that the share of people spending 10 minutes or less in stores is up from September 2023.
Dennis O’Leary said he noticed new chairs and other updates at his local Starbucks on 58th St. between 5th and Madison Avenues in Manhattan, but hasn’t started spending more time there. The music, O’Leary said, was too loud and “tinny” to make him stay long. Instead, he wears noise canceling headphones while waiting for his drink.
Inside, Same Ol’ Mistakes by Rihanna played over the sound system. By late morning on a Wednesday, all seven of the small tables with seating were occupied mostly by customers waiting for orders to be called out. Only a couple of patrons pecked away at laptops nearby.
Along with the cosmetic changes, Niccol has ordered increased staffing and began requiring baristas to write uplifting messages on cups.
The coffee chain told Bloomberg it’s made progress simplifying its menu, trimming the list of items by 25%. This year, Starbucks will only have one apple crisp beverage, as opposed to the seven it had last year. The company has also reduced frappuccino options and phased out some food items, like blueberry scones and portobello and kale egg bites.
“We streamlined our menu to clear the way for innovation and focus on what customers love most,” a spokesperson told Bloomberg.
It’s also had success with some new menu items, including pecan drinks that have seen double-digit order growth from last year, the company said.
Starbucks recently announced a spate of store closures and layoffs as part of a $1 billion restructuring, and prioritised shuttering financially struggling and dated stores, according to the statement announcing changes. The company targeted the to-go only store formats introduced under previous management, as those models are out of step with Niccol’s current vision for the brand. Those locations were closed or will be updated to full-service setups.
Analysts expect Starbucks to report sales at existing North American stores were flat last quarter when it issues results, though data points to a continued slide in foot traffic through the period.
Do you find this article useful?
