Starbucks Can't Get Customers to Stay, Despite Costly Cafe Makeovers
Starbucks is struggling to keep customers in its cafes, even after spending heavily to make stores more inviting. New data from Placer.ai shows the share of visits lasting more than 10 minutes has dropped from over 40% in 2023 to roughly one-third today, according to Bloomberg.
CEO Brian Niccol made longer in-store visits a core piece of his turnaround plan when he took over in September 2024, promising better service, faster drinks and a return to the “warm, cozy, comfortable environment” Starbucks once championed.
Yet foot traffic has fallen for four straight quarters, while profits have slid by double digits over the last four and same-store sales have declined for six. Shares are down 6.4% this year.
“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. Still, he noted that if shops look and feel better, customers may at least come in more often: “They just want more people to come in and walk in and say, ‘wow, this feels like a great place.’”
Bloomberg writes that Starbucks has been adding seating, more electrical outlets and ceramic mugs, effectively reversing years of redesigns that prioritized speed over comfort.
The company says remodeled locations are seeing visitors stay longer and return more frequently. “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.”
Renovations have also gotten cheaper, with some now costing about $150,000 instead of up to $1 million. Starbucks plans to refresh 1,000 North American stores in fiscal 2026. The chain has also sped up service — 80% of drinks are now served in under four minutes — and simplified the menu by 25%, cutting back on seasonal excesses. “We streamlined our menu to clear the way for innovation and focus on what customers love most,” the company said.
But the company is also closing older and to-go-focused locations as part of a $1 billion restructuring meant to align operations with Niccol’s more café-centric vision.
Some customers say the shops still aren’t conducive to lingering. At a Manhattan location, Dennis O’Leary noticed design updates but complained the music was too “tinny” and loud to make him stick around. Most seats were filled with customers waiting for orders rather than relaxing or working.
Analysts expect Starbucks to report flat same-store sales in North America when it announces earnings Wednesday — signaling the company’s push to make Starbucks a place to stay, not just stop, still has a long way to go.
Tyler Durden
Sat, 11/01/2025 – 09:55