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Can nostalgia save Starbucks? A look at their big bet

Starting Monday, Starbucks locations in the U.S. and Canada are reintroducing some familiar features, including condiment bars with creamer, milk, and sweeteners

byKerem Gülen
January 27, 2025
in News, Industry
Home News

When you step into a Starbucks this week, you might notice something different. The coffee giant is rolling out a series of changes aimed at reviving the cozy, community-driven vibe that once defined its cafes. From the return of condiment bars to free refills for in-store customers, Starbucks is betting big on nostalgia and a premium experience to win back customers and boost its struggling sales.

Starbucks brings back the coffeehouse feel

Starting Monday, Starbucks locations in the U.S. and Canada are reintroducing some familiar features, including condiment bars with creamer, milk, and sweeteners. These stations were removed during the COVID-19 pandemic, but their return signals a shift back to the chain’s roots as a welcoming third place between home and work. Customers ordering drinks “for here” will also be served in ceramic mugs or their own reusable cups, with free refills on hot or iced coffee and tea—a perk previously reserved for loyalty program members.

Baristas are also bringing back a personal touch: handwritten names on cups using Sharpies. This small but meaningful detail is part of CEO Brian Niccol’s plan to rekindle the human connection that he believes has been lost in recent years. “Our customers are asking for it, and our baristas are saying it would help them deliver the speed of service they want to provide,” Niccol said in a recent earnings call.

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A new code of conduct for cafes

Alongside these nostalgic updates, Starbucks is implementing a Coffeehouse Code of Conduct to clarify that its spaces are for paying customers and employees. The new policy restricts access to restrooms and seating areas to those who make a purchase, a reversal of the chain’s 2018 open-door policy. The move has sparked mixed reactions, with some employees welcoming the clarity and others expressing concerns about turning away those in need.

“We’re at the front lines of having to have these conversations with customers, some of whom are not going to take this well,” said Michelle Eisen, a barista and union leader. Meanwhile, Rachel McVay, a store manager in Texas, praised the policy for creating a safer and more welcoming environment. “It gives baristas clarity on how to prioritize patrons and build trust,” she said.


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Can Starbucks turn its sales slump around?

These changes come as Starbucks faces its first annual sales decline since the pandemic. Global sales at stores open at least a year fell 7% last quarter, with customer transactions dropping by 8%. Niccol, who took the helm in September, is under pressure to reverse this trend. His strategy focuses on enhancing the in-store experience, from faster service to premium touches like perfectly crafted caramel macchiatos with seven vertical and seven horizontal caramel lines.

Analysts are cautiously optimistic. “Maybe one of the ways they can improve the value perception is by making the experience more premium,” said Eric Gonzalez, an analyst at KeyBanc Capital Markets. “Giving you a ceramic mug and making you feel good about yourself when you’re sipping it in the coffeehouse—like you’re on an episode of Friends.”

Investors will get a clearer picture of Niccol’s progress when Starbucks releases its latest earnings report on Tuesday. While the bar is low, the company’s stock has risen 7% over the past year, reflecting hope that these changes will pay off. For now, Starbucks is betting that a return to its coffeehouse roots—with a few modern tweaks—will be enough to win back customers and reignite its brand.


Featured image credit: June Andrei George/Unsplash

Tags: starbucks

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