New changes at Starbucks aim to boost slow sales

Starbucks made sweeping changes to enhance in-store customer experiences in the US and Canada. The new offerings, which went into effect Monday, are part of new CEO Brian Niccol’s plan to revive declining sales.

CEO Niccol touted plans for several such “personal touches to elevate the cafe experience.”

The changes include using ceramic mugs for dining, macchiato art, and free refills of iced or hot coffee for diners, and chatty baristas.

Aiming to make it a premium venue, the coffee shop is limiting free water and restrooms to paying customers. This shift from the inclusive 2018 policy is sparking debate among workers and unions supporting homeless people.

In November, Starbucks reported its first sales decline since 2020. Since joining in September, Niccol promised faster service and a more premium feel to restore the coffee giant’s appeal.

The company also froze prices and dropped nondairy milk surcharges to ease affordability concerns.

Investors are eyeing Starbucks’ first-quarter earnings, expected today.