Starbucks Outlaws Lounging Without Buying As Sales Slip

Core Insights - Starbucks is implementing a new policy that defines customers as those who make purchases, asking non-paying visitors to leave, marking a shift from its previous policy established in 2018 [1][5] Group 1: Company Performance - Starbucks' North American stores experienced a 5% decline in transactions last year, the first annual drop since the COVID pandemic [2] - Analysts predict a 4.8% decrease in same-store sales for the upcoming quarterly earnings report [2] Group 2: Strategic Initiatives - The new policy is part of the "Back to Starbucks" initiative aimed at enhancing customer experience and prioritizing quality coffee [2] - CEO Brian Niccol emphasized the need to reestablish Starbucks as a community gathering place and simplify the menu to attract more paying customers [3] Group 3: Market Trends - The restaurant industry, including Starbucks, faced sales declines throughout the previous year, influenced by changing consumer spending habits due to persistent inflation [4] - Research indicates that about one-third of consumers have reduced their spending, regardless of their financial comfort [4] Group 4: Social Implications - The new policy has sparked controversy, with advocates for unhoused individuals arguing that Starbucks locations provide a necessary refuge during early morning hours when shelters are closed [6]