Starbucks unveils huge store updates amid turnaround plan

Many iconic chains refuse to change their signature store design for fear of losing the recognizable essence that has made them so beloved by their customers.  

However, when customers stop visiting as much as they used to and sales begin to plummet, refusing to make changes and keep up with evolving trends can only lead to a business’s demise.  

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Over the last few months, Starbucks has faced some turbulent times, which were so concerning that it had to make a change fast. 

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Starbucks CEO Brian Niccol developed the “Back to Starbucks” turnaround strategy to reverse the company’s concerning sales declines by returning to its roots and personalizing the coffee shop experience.

One of the many targets in this new plan was to encourage customers to stay longer at Starbucks stores, which would improve the company’s declining foot traffic and encourage more in-store purchases. 

Starbucks unveils its new store design.

Image source: Jeffrey Greenberg/Getty Images

Starbucks reveals store revamps as part of its turnaround strategy

Starbucks  (SBUX)  made various short-term changes to achieve its turnaround goals, including free in-café refills on hot and iced brewed coffee and tea at participating locations. It returned handwritten notes on to-go cups and bags to foster better customer connections. 

The coffee giant also reintroduced condiment bars and ceramic mugs for in-house sipping after they were removed during the pandemic.

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Niccol noted that these quick changes have already improved traffic, bringing its store traffic decline to 4%, compared to the previous quarter’s 8%. However, the chain still has room to grow, since the numbers remain negative.

“We’ve seen more customers choose to sit and stay in our cafés, and we continue to receive overwhelmingly positive feedback from customers, demonstrating that small details and hospitality drive satisfaction,” said Niccol during an earnings call.

As for its long-term goals, Starbucks wants to redesign its store fleet to create a more welcoming and cozy vibe. However, a project this massive requires a heavy investment and time. 

Starbucks unveils its new coffeehouse design

In May, Starbucks announced it would begin a string of store remodeling projects over the next few months, with New York and Southern California stores being the first ones on the list.

After two months, Starbucks has finally brought its new coffeehouse design to real life, marking a noticeable departure from its previous aesthetic.

The new design debuted at various Starbucks locations in the Hamptons, New York, this month. The company plans to roll it out to 1,000 stores over the next year. 

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This revamped aesthetic features cozier and more diverse seating, including more booths, couches, and long wooden tables, all strategically positioned to encourage guests’ interactions. It also has high tables and further-apart seating for remote workers and students.  

The new design shows warm lighting, creating an inviting atmosphere and more power outlets to prevent customers from needing to return home to recharge their devices. 

Starbucks coffee shops are known for being unique to every location, and to continue emphasizing this distinct feature, the walls are decorated with art inspired by each city. 

The food displays are fully stocked and more visible to incentivize customers to try them. The espresso bar is more open and almost theater-like to showcase the baristas and the crafting process. 

The new design also has new risers and shelves to further distinguish in-store and mobile orders and facilitate pick-up.  

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