Starbucks took a shot in the dark with their new policy, and it’s bean working.
The coffee giant has been making moves to rebrand their stores as classic coffeehouses for communities to “sit and stay” — and it’s paying off, according to numbers shared with Axios.
At the end of January, Starbucks implemented a new refill policy where customers ordering in-store have to say if they would like their drink “for here” or “to go.”
Those who order “for here” get their drink served in a ceramic mug, glass or a personal cup. These people are able to get free refills during their visit on hot brewed or iced coffee, or hot or iced tea.
Starbucks revealed to Axios that over the past three weeks, “the number of customers who choose ceramic mugs and glasses to sit and stay in cafes has on average increased by more than 3X in the U.S.”
Customers must have their first drink served in one of these reusable cups in order to receive free refills, and no disposable or plastic vessels can get free refills — which is encouraging some patrons to stay awhile.
New CEO Brian Niccol — who took the helm back in September — said at the company’s annual shareholders meeting last week that he was “pleased at the early reaction to changes we’ve made from both customers and partners.”
These changes come as Starbucks is hoping to increase foot traffic and sales as part of its “Back to Starbucks” initiative, a plan to simplify offerings and return to its roots.
The company is “leaning into our coffee culture,” Tressie Lieberman, Starbucks’ global chief brand officer, told Axios.
“We’re reestablishing Starbucks as the community coffeehouse and reintroducing Starbucks to the world,” Lieberman added.
The coffee giant is aiming to expand their reach, investing in ads on TV and streaming that will “evoke the feeling that ‘I want to go to Starbucks.’”
Starbucks has already started to test new designs in select locations, too, bringing back “more comfortable seating and spaces,” further giving stores an old-school vibe where customers can sit for hours relaxing or doing remote work.
New designs include “expanded seating options, power outlets, and abundant food displays” as well as some locations with “more separation between the cafe and mobile order experience,” the company revealed to Axios.
Niccol has been making quite a few changes to the popular coffee chain since he came aboard from Chipotle.
When he started, he noted that one of his priorities to accelerate growth at the company is to simplify the “overly complex” menu so baristas can speed up service with a goal to cut “roughly 30%” of food and drink options from its menu by late 2025. At the beginning of the month, Starbucks removed 13 drinks from its menu.
The company also recently shared that users on the Starbucks app and website will no longer be able to make certain modifications because these changes are included in beverages that already exist on the menu.
Several other policy changes have been put in place since Niccol took over, including limits on digital orders, the return of condiment bars, reversing the open-door policy, having baristas write on cups with Sharpies and bringing back comfy chairs to some of its stores.
